Q: Question about LLC
I am the owner of a LLC and I signed an agreement with someone and in the contract there is no mention of the business LLC name, it only has my personal name. I want to take someone to court for breach of written and verbal contract. I personally have no assets or money outside of the LLC, so if I lost is it correct that he could not get any money from me personally or from the LLC? And I would have to sue him under my personal name and not the business name since thats what on the contract correct?
A: If the contract has nothing to do with the business, the business shouldn't be liable. It seems you are expecting a cross-complaint. If the contract was entered into for the benefit of the business, expect the other party to go after you and the LLC. Without knowing more, it's impossible to determine what you should do. "Reverse Veil-Piercing" is a legal concept you should research. Obviously, an attorney would help you and your business. Please do not be one of the many that go to attorney after things have gone horribly wrong. It is so much more expensive and some of the damages are irreversible.
A: In California, when a contract is signed in an individual's personal capacity and not on behalf of an LLC, that individual is generally the proper party to bring the lawsuit for breach of that contract, and the individual could potentially be personally liable for any judgments in the case, not the LLC. However, whether your personal assets or the LLC's assets would be at risk in a lawsuit can depend on a variety of factors, including the specific circumstances of the signing of the agreement and the interactions between the parties. It is recommended to work with an attorney to review the specific facts and documents involved in your case to provide tailored advice on how to proceed and protect your interests.
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