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Can i be sued personally if my LLC is being sued?

Montclair, NJ |

I own an LLC team and being sued by a coach. Can I be held personally for a lawsuit if the team did not make any money financially? We did have a contract drawn up, however, I did not sign it because the coach had violated many parts of the contract. What are my chances on proving this since she did violate many sections of the contract and even though the team was successful she still dismantled the team in violating what I had written in the contract, which is why I never signed it. In court, will she be able to go after personal assets? put a judgement on my house?

Attorney Answers 4


Generally speaking LLC members are not personally liable for the obligations of the Company. There are exceptions to this general rule, however, so it is definitely a good idea to talk to a good litigator in NJ and get more educated on corporate law and the limited liability shield that you are operating under as a member of an LLC.

Legal disclaimer: I am licensed to practice law in the state of Washington and the answer provided above is for general information purposes only and should not be relied on as specific legal advice. This answer does not form an attorney-client relationship. You should consult with an attorney of your choice to fully advise you about your legal rights and obligations.

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New Jersey limited liability companies are so named because they are intended to shield the owners from personal liability. Most states follow this model through enactment of uniform LLC laws. However, in certain cases the protective shield can be pierced by a court order. Reasons for piercing are fact specific and could include, among other matters, failure to maintain proper books and records, commingling of personal and business assets, inadequate capitalization, or fraud. This can be a complicated area and I recommend you confer with a business lawyer familiar with LLC formation and governance. I practice in this area in both New York and New Jersey and would be pleased to speak with you offline about your concerns. Please feel free to email me or call my office at your convenience. All the best.

This answer is provided for information purposes only. It should not be relied upon as legal advice which can only be offered to clients in an office consultation setting when all the facts and circumstances can be fully considered and reviewed.

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1 comment

Martin L Bearg

Martin L Bearg


An additional reason for being personally liable is if you comment an intentional tort (you get into a fight, car accident-which your vehicle insurance should cover provided you tell the insurance company the vehicle is being used for more than pleasure or commuting to work) - while acting in the name of the business. Also, plaintiffs' attorneys sue anyone and everyone, hoping someone has the deep pockets to pay, regardless of whether or not there is actual liability.


You know better about the key concerns for piecing the corporate veil. Did you maintain proper books and records? Was there any (and I mean any) commingling of personal and business assets? Did you have adequate LLC capitalization at the outset?

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You have been given excellent advice by respondants.

Advice provided is general in nature and should not be relied upon without retaining qualified and experienced legal counsel who is able to review in details the precise facts and details of your legal matter.The law firm of Hanlon Niemann and fredrick p niemann disclaims any express or implied guarantees or warranties associated with this response.

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