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I have an insolvent LLC...can a collection agency sue me personally?

Pittsford, NY |

A contract was signed that we then sought in writing to cancel within a few weeks and before any action was taken to utilize the services of the company. However the original contract had language that made it impossible to cancel. Our LLC was already struggling. We decided to cease operations. Should I dissolve the LLC or keep it in good legal standing through this process? Also, can they go after me personally? My name is not on the contract.

Attorney Answers 3

  1. Whether to dissolve the LLC or not likely requires a conversation with a lawyer who practices corporate law and the decision probably won't be based simply on this one issue. LLCs are formed to give individuals protection so generally speaking you should not have personal liability.

    I am a former federal and State prosecutor and have been doing criminal defense work for over 16 years. I was named to the Super Lawyers list as one of the top attorneys in New York for 2012 and 2013. No more than 5 percent of the lawyers in the state are selected by Super Lawyers. Martindale-Hubbell has given me its highest rating - AV Preeminent - in the areas of Criminal Law, Personal Injury, and Litigation. According to Martindale-Hubbell”AV Preeminent is a significant rating accomplishment - a testament to the fact that a lawyer's peers rank him or her at the highest level of professional excellence." Fewer than 8% of attorneys achieve an AV Preeminent rating. I also have the highest ranking – “superb” – on Avvo. The above answer, and any follow up comments or emails is for informational purposes only and not meant as legal advice.

  2. I agree with my colleague that generally speaking you should not be held personally liable. However, you should contact a contract lawyer to review you contract, which is the only way to get a good assessment of your situation.

    If you found this "helpful" or "best answer," please click it with my appreciation. This response does not constitute legal advice and does not create an attorney client relationship. Thank you and good luck.

  3. Take the contract to an attorney for review. There are many factual questions that need to be answered before coming up with a legal course of action.

    My direct line: 646-606-6002. If this answer is helpful and/or the best answer, then please indicate it as so. Thank you. This answer is provided for informational purposes only and does not constitute legal advice. You should not take action based upon this information without consulting legal counsel. This answer is not intended to create, and does not create, an attorney-client relationship.

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