Legal Question in Business Law in Tennessee

Llc

I am a vendor taking a client to court for non-payment. I filed using the owner's name rather than the LLC's name as the defendant. In this situation, can the court find that HE does not owe me the money but his LLC does and so I have sued the wrong entity? or Does it not matter? He owns the company so he owes the money?


Asked on 4/08/08, 6:17 pm

1 Answer from Attorneys
Joseph T. Kirkland, Jr. Kirkland, Rothman-Branning & Associates, PLLC

Re: Llc

If you did business with the LLC then the LLC will generally be the debtor and the party that will be liable, not the owner of the LLC. The purpose of establishing a Limited Liability Company (LLC) is to protect the assets of the members (owners) from the claims of creditors. There are circumstances where the owner could be liable, but rarely.

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Answered on 4/09/08, 10:58 am


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