Can an Owner of an LLC Be Sued for the LLC’s Actions?

September 20, 2019

If you are the owner of an LLC that has been accused of unlawful actions, you might be worried about your personal financial status. Although the owner of an LLC doesn’t have the same personal responsibility that one might have with a sole proprietorship, there are still some situations in which the owner can be held personally responsible for the LLC’s actions. Here’s what you need to know.

What Is an LLC?

A limited liability corporation is a business model that allows for one individual to own the company while enjoying the tax benefits of being a corporation. An LLC also generally prevents the owner of the company from being held personally responsible for debts and actions. An LLC is usually formed when someone wants to own their own business but wants to keep their personal and business assets and income separate.

When Can an Owner Be Sued?

The LLC organization of a company generally protects the owners from personal liability, although the LLC itself can be sued. However, courts have the ability to determine when an owner of an LLC can be sued. In most cases, you will risk being sued as an owner of an LLC if any of the following apply:

  • The LLC was knowingly used for illegal actions or practices by the owner.
  • There is no real distinction between the owner and the LLC.
  • The owner committed fraud as an officer of the company.
  • The owner doesn’t make the distinction between themselves and the company clear to the third party.

If any of these situations applies to your legal matter, there is a chance that the courts could allow you to be named as a defendant, even though the LLC should be protecting you as a general rule. Due to these complications, if you or your LLC is being named in a civil lawsuit, you should contact an attorney immediately. Call us today for more information or to schedule a consultation.

Our Testimonials

What Our Clients Say

Drew Patterson is an exceptional, multifaceted attorney. He continually strives to understand the intricacies of our business and produce results. He is highly recommended.

I dealt with Drew on a business lawsuit and he did a hell of a job, being very thorough and winning the case for me. He also recommended me a very good thorough lawyer for a different lawsuit and I'm very pleased with everything that Drew has done not only in the one case but his referrals as well. Would definitely recommend and refer friends to him.

I cannot express enough the immediate efforts of Drew to solve the problem at hand was something you don't see often nowadays. Drew was able to completely prevent something from happening that would have changed the course of my life. If anyone wants a lawyer that makes you feel like you are his number 1 priority hire Drew!!!! Definitely recommending him to anyone that is in need of legal counsel.

Great to work with and Very effective! Many Thanks to attorney Drew Patterson, who handled a business lawsuit for me in a very professional and timely manner resulting in the case being dismissed. In my opinion, Drew was very knowledgeable, asked pertinent questions, explained things easily and understandably, and was a pleasure to work with. He gets it done! If I need an attorney again, Drew will be the first one I call. Additionally, the staff at Robert Eckard & Associates were always courteous and helpful.

Thank you for all you did for me during this difficult time I couldn’t ask for a better team of lawyers even when I was lamenting the speed of things, you guys are professional, tenacious, and know your sh-t!.

view all testimonials
Stay Connected

Get Updates About Our Firm

Our Attorneys encourage client input to customize a strategy to provide the legal services you deserve. We provide experienced representation for those in Florida and now Texas.