Legal Question in Business Law in California

Re: legal responsibility belongin to llc

Your risk of liability for the acts or omissions of the LLC are very low. That's the point of an LLC: like shareholders of a corporation, members of an LLC cannot be held liable for the acts and omissions of the company. Thus, only your actual investment in the company is at risk. There are some exceptions, however. Under certain circumstances, taxing authorities, such as the IRS, could impose personal liability on you. Another remote possibility is that some creditor could convince a court to hold that the existence of the LLC is a fraud, and that the creditor should be permitted to hold the members personally liable. Both are very unlikely.

To find out your rights to see the company's books and records, go see a lawyer and show him or her the LLC's Operating Agreement as well as other documents.