Q: Question on Liability after Switching to LLC from Sole Proprietor
Let's say that I previously was a sole proprietor and served client ABC during that time as a sole proprietor. Let's also say that at some point after serving client ABC, I formed an LLC for the same business. At some point after the formation of the LLC, client ABC sues me/my business. Do the benefits regarding limited liability still apply even though client ABC was served back in the sole proprietor days?
A: If the basis for the lawsuit is for something that happened before you formed the LLC, then the LLC shield does not protect you from personal liability.
Cedulie Renee Laumann agrees with this answer
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