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can you personally get sued if you have an llc this is sam bryant from bryant law where we help business owners protect the legacies they work so hard to build there might be a misconception out there that if you have an llc you have this blanket protection from ever getting sued but that's simply not the truth first of all anyone can sue anybody for anything and i tell clients this all the time we said that what that really means is if i have an llc and i sign a contract in the name of my business and the person on the other side decides to sue myself and the business i still as an individual have to respond to that lawsuit now i may get dismissed from the lawsuit depending on the circumstances and then the llc still has to continue but i still have to go through those preliminary processes of defending myself so to say that you can never get sued is just factually incorrect now the other thing i think what people really want to know is can you legally be held liable personally if you have an llc and the answer to that question is also yes there are certain circumstances in which you as an individual can be held liable even if you have an llc and that usually comes about if you as an individual are doing something wrong yourself so you can't look at an llc as this umbrella under which you can just do something you can commit some sort of action against or wrongdoing against another person and use your llc to protect yourself so people who engage in fraudulent schemes or activities or negligence or gross negligence in the name of a business can still be sued personally where an llc really protects you is if you have a business partner and your business partner does some wrongdoing then you as a as the other as the non-wrongdoer are usually protected so another way of putting it is an llc really provides a blank a protection against the actions of others who are owners of the business so to sum it all up if you are an owner of an llc don't think that you are just um excused from any type of activities and you can never be touched and never be sued that is not the case you can be sued you can't be held individually liable even if you have an llc in certain circumstances so when you engage in business as an llc you want to be careful of that be careful of what your actions are or be careful of your actions because you are personally liable for your own individual actions anyone else associated with the llc will generally not be held personally liable for your actions and vice versa i hope this clears some things up because there are a lot of misconceptions even though there's a lot of inner information on the internet we still get a lot of questions about this and i have to have this conversation a lot so i hope putting this type of content out there will really help demystify some of these misconceptions
Thanks for your comment Jermaine Gaglia, have a nice day.
- Olive Chiappari, Staff Member
do locs protect against lawsuits this is sam bryant i'm a business attorney with brian taylor law and the answer is no locs do not protect against lawsuits in a general sense i usually tell everyone whether clients or people who are interested in legal services i tell them that anyone can sue anybody for anything the real question is can you be held liable for a lawsuit against you or your llc and by liable i mean can you be in a situation where a judge forces you to pay money to another party as a result of a lawsuit so the answers to that question basically would be it depends um if you have an llc your llc will generally have to be liable for anything that the llc does so if the llc is involved in a lawsuit and the llc loses the llc is responsible for the judgment you as a personal individual that owns the llc in the general context or generally speaking will not be held personally liable for the actions of the llc even if it's involved in a lawsuit am i personally liable i mean that if the llc has to pay a judgment that judgment gets paid out of whatever the llc owns so the llc bank account if you have your own personal bank account and you have your own assets that are not owned by the llc you generally don't have to worry about those personal assets having to take the responsibility of the judgment it's basically whatever the llc owns is subjected to that judgment so if we go back to the original question does do llcs protect against lawsuits they really don't because there really is nothing that can protect you from a lawsuit you can be involved in a lawsuit doing for for any reason it's just a matter of how quickly can you get out of the lawsuit and that will depend on a lot of different circumstances but as a person who owns a business if you are involved in the lawsuit in a sense that your personal name is attached in a lawsuit so you are named as a your individual name is uh included as a defendant in a lawsuit what the llc will do is it will protect against you having to pay a judgment out of your personal assets so again an llc does not protect against lawsuits an llc that is executed and ran correctly will protect your personal assets from being exposed to any judgment against the llc so i hope you found that video helpful if you need to speak to a florida business attorney our contact information is in the description below and then we have a plenty of other videos that can help protect and grow your business
Thanks RatW your participation is very much appreciated
- Olive Chiappari
About the author
I've studied corporations at Anderson University, Indiana in Anderson and I am an expert in cartography (outline). I usually feel bittersweet. My previous job was insurance appraiser (auto damage) I held this position for 22 years, I love talking about stretching and tennis polo. Huge fan of Michelle Trachtenberg I practice wrestling and collect pin-back buttons.
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