Legal Question in Business Law in Massachusetts

The fact the business ceases to operate does not prevent someone from suing it. As to the personal laibility of an employee or an owner, it depends on what the suit is about and what was done; if the business is a sole proprietorship or partnership as opposed to a corporation or limited liability company.

Actions for fraud can be directed personally at the person performing same. Partnerships and Sole Proprietors have personal laibility for the obligations of their business regardless of whether they are operating or not.

I suggest you contact an attorney in your area for advice in dealing with the issue.

It depends on the type of business' corporate structure and the nature of the suit.