Legal Question in Business Law in California

Does the CA agency have the right to transfer penalties from the terminated LLC to another entity (S-Corp)?

I am a general contractor, with my partner we have an S-corp registered in CA. My partner previously had a painting LLC with his friend. They opened LLC in 2016 and did a couple of public projects. In May 2019, they decided to terminate LLC. After LLC was terminated, the State Agency sends a "Penalty assessment" to the LLC and to my corp., because my partner was as a member of LLC (I'm not). Now they ask to pay fines for LLC where I was not a member. I want to find out how lawful is?


Asked on 6/26/20, 9:03 pm

1 Answer from Attorneys

It is unusual, but not unheard of. Apparently, your partner was trying to avoid his previous obligations by starting a new business with you.

Read more
Answered on 6/27/20, 9:14 am


Related Questions & Answers

More Business Law questions and answers in California