Legal Question in Business Law in Texas

Based upon what you have written, there is no clear response. Generally, members and managers of LLC are protected from individual liability. This may not be the case dependent upon the terms of the operating agreement between the members and managers of the LLC. Additionally, it depends upon what is alleged within the law suit - some actions may impute personal liability. A review the of the agreements, the law suit, the facts surrounding the case would be required prior to providing a clearer response. You should consider consulting with a law firm to ensure that your rights and interests are being fully protected.

The above response given is not intended to create, nor does it create an on-going duty to respond to questions. Additionally, the response does not form an attorney-client relationship, nor is it intended to be anything other than an educated opinion. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change.

An attorney will tell you, it depends on the factual situation and the details of the LLC. Courts can and do pierce the corporate veil of LLCs when some type of fraud or misrepresentation is involved, or under certain situations where the owner uses the company as an "alter ego." Consult with a business attorney in your area for specific advice, given your situation.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney