Legal Question in Business Law in Texas

LLC debt, personal responsibility

An LLC I was involved in as one of 2 members did not pay several outstanding accounts payable and now the entity is facing several lawsuits from creditors. I was not aware of this until after the fact. Can I remove myself as a member of the LLC? If I do does this protect me to any degree with the pending lawsuits? If not what should I do to cover my arse? The other member of the LLC was responsible for paying the bills and chose to keep the money rather than pay creditors. Can I sue him for malfeasence or something? Help please!!


Asked on 5/23/07, 11:28 pm

2 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: LLC debt, personal responsibility

Business accounts payable is the LLC's headache, not the member's, unless that's something you personally signed for.

You have a cause of action for an accounting from the other member, but if he's embezzling funds chances are he'll be too broke to collect against.

Read more
Answered on 5/24/07, 12:32 pm
Johm Smith tom's

Re: LLC debt, personal responsibility

You can get out of the LLC but you'll still be liable, if you ever were, for the current debts. We would need to know more to determine your best options. But I do know that you need your own attorney and don't share with the other member! Contact us if you want a legal opinion or free referral if we can't handle the case.

Read more
Answered on 5/24/07, 12:32 am


Related Questions & Answers

More Business Law questions and answers in Texas