Wednesday, September 26, 2012

How to Sue a Person Within an LLC

A Limited Liability Company (LLC) is a type of business structure that offers its owners limited protection against liability. In general, you can sue an LLC member as an individual, but if the LLC is structured in a way that protects its members from liability, you may not see a dime of the LLC proceeds in the settlement. Recent changes in the law preclude the liability protection in some instances, so there is a chance you may be able to recover some money.

Instructions

    1

    Contact your secretary of state's office or division of corporations office to get a copy of the LLC's articles of organization. The LLC's articles of organization will tell you how many members are in the LLC and provide addresses and other identifying information for the business and registered owners.

    2

    Check the law for the legal status of single-member LLCs in your state. If it's a single-member LLC, you may be able to successfuly sue the owner for access to the LLC funds. Two states have already removed liability protection for LLCs -- Florida and Colorado -- and more are expected to follow suit. If you intend to sue a member of a multi-member LLC, you won't have any luck gaining access to the company's funds due to the liability protection afforded by the LLC.

    3

    File your claim in your jurisdiction's courthouse. Depending upon the size of the claim, you may be able to file a suit in small claims court. Otherwise, you may be required to sue the LLC's member in civil court. Check with your county clerk for the correct place to file the claim.

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