If you have multiple LLC's and one is being sued can they also access the assets to the other LLC's?

Asked 7 months ago - San Diego, CA

If you have a product liability lawsuit to one of your LLC's can your other LLC's be held liable or have any those assets be affected?

Attorney answers (3)

  1. Phillip Monroe Smith

    Contributor Level 18

    4

    Lawyers agree

    Answered . The answer is no, but the other LLC's can be named in the lawsuit, they would have to prove they should not be sued and/or are not liable based on the facts of the case.

    Good luck.

    THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can... more
  2. Michael Charles Doland

    Contributor Level 20

    3

    Lawyers agree

    Answered . I agree with Mr. Smith, with the following clarification: so long as the LLCs were properly created and maintained and the membership interests validly issued.

    If you really are concerned about product liability, insurance is available.

    The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may... more
  3. Dana Howard Shultz

    Contributor Level 20

    1

    Lawyer agrees

    Answered . Assuming that the LLCs were properly formed and operated, the assets of one LLC cannot be seized to satisfy the obligations of another LLC.

    This information does not constitute legal advice and does not establish an attorney-client relationship.

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An LLC (limited liability company) is a business entity that has elements of both a corporation and a partnership (or sole proprietorship).

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Every kind of small business has its own insurance requirements. Some are mandated by law and some are not (but may still be a good idea).

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