Legal Question in Business Law in New York

Dissolution of company and debts owed

My LLC is in the process of dissolution. A client has sent us a check for work that was promised to them, although no contract has been signed by either party for the work. Outside of the moral issues, are there any legal issues to deal with if we were to keep the money? Is there any way that they could come after us personally after the business folds up?


Asked on 8/04/04, 6:06 pm

2 Answers from Attorneys
Joseph Tremiti TREMITI LLC

Re: Dissolution of company and debts owed

Thank you for your inquiry. This response is for informational purposes only and should notbe construed as legal advice.

Put simply, to keep client funds for work not performed could be a criminal matter (e.g., theft). Any funds for services not rendered should be returned immediately to clients. Moreover, I would maintain a detailed accounting of work performed/not performed and monies received/returned in case you have any client issues after you wind down.

I hope this is of some help.

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Answered on 8/06/04, 11:47 am
Stephen Loeb Law Office of Stephen R. Loeb

Re: Dissolution of company and debts owed

Yes. That would be stealing. Enron was a corporation that was crumbling too.

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Answered on 8/05/04, 11:22 am


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