Comments | thereject: Is there a lawyer in the house?

thereject

Is there a lawyer in the house?

Jan 03, 2007 23:27

Imagine there was a company. Let's call it Dumbfucks, LLC. (based in the state of Virginia ( Read more... )

Comments 6

aidian January 4 2007, 06:05:47 UTC

I am very much not a lawyer, but i don't think that's what limited liability means. It's my understanding that the LL part of LLC/LLP means more that when the creditors come knocking and bankruptcy happens, they can't seize your personal belongings and assets to pay back the company debts, or at least it limits the damages. It's not a "get out of debt free" card. It's a "help prevent foreclosure on your home when the company goes tits up" card ( ... )

purrevil January 4 2007, 06:48:36 UTC

For what it's worth, I agree with aidian. They are well within their rights to sue, however, your countersuit should take care of the problem. Get thee to a bloodsucker...err, lawyer right away.

thereject January 4 2007, 15:04:17 UTC

The partnership agreement doesn't have any clauses saying I have personal liability for company debt, but now that you mention it I see I do need to offload my ownership somehow. The main problem right now is that I'm dead broke unless and until they pay that consulting fee, so I can't afford a lawyer just yet. I have an interview at another place tomorrow, I guess we'll see how that pans out. Worse case scenario, I'm only really out $3,400 like you said.

deinemuse January 4 2007, 14:14:32 UTC

I would speak with a lawyer, but from what I know you would be responsible for the 20% as aidian says unless the 80% gives you free leave. I would try to settle first because a lawyer could end up costing you a small fortune too.

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thought1 January 4 2007, 15:27:16 UTC

LLCs (and I think LLPs, too) generally have another benefit, in that litigation lawyers tend not to file frivolous lawsuits. The reason for that is because damage judgements against LLCs can only be brought against the income extracted from the LLC. Since the business can always be structured in such a way that no incoming is coming out of it directly, the client ("injured" party) is left holding 100% of the tax liability, as if they'd received the damages from the judgement in their favor, yet the LLC can often postpone paying them indefinitely. Very effective against people using lawsuits as a "get-rich-quick" scheme.

kielbasa_007 January 4 2007, 23:31:11 UTC

Brian H. Leventhal. 5606 Whitney Mill Way N. Bethesda, MD 20852 Tel: 301-775-9240