Falsely stating a business is an LLC and it is not

Asked 12 months ago - Woodbridge, VA

This guy stated that he was part of a business when he was not and the business was a sole proprietorship and was collecting money for such from December 2012-April 2013. In May 2013 to cover himself for his illegal doings, he and his wife made the business an LLC and made him the head of the company after someone he conned reported him to the Virginia State Police CBI for fraud and attempting to garner money through deceptive means. My question is: He is now the LLC head of the company from May 2013 onward, but was he covered for the previous months he did this? I say no and that he broke the law. What do you think?

Attorney answers (3)

  1. Peter Anthony Jabaly

    Pro

    Contributor Level 15

    1

    Lawyer agrees

    Answered . Unlikely, it's not as if the company simply failed to get authority to do business in the state, but it was an LLC otherwise. It misrepresented its limited liability status. I'd speak to an attorney, like myself, regarding your matter.

    The answer provided is for general information purposes and cannot be relied upon. In order to provide legal... more
  2. Alan N Walter

    Contributor Level 12

    1

    Lawyer agrees

    Answered . The LLC would -- possibly -- shield him from liability, only if it existed. If he engaged in bad acts before the LLC existed, setting up an LLC would not retroactively protect him.

  3. John P Corrigan

    Contributor Level 19

    1

    Lawyer agrees

    Answered . An LLC cannot shield an owner from personal liability for criminal conduct.

    My answer is not intended to be giving legal advice and this topic can be a complex area where the advice of a... more

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