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Ratings. Guidance. The Right Lawyer.
The second member of the LLC is concerned whether he could be held liable for the actions of the first.
Arlington, TX
Viewed 13 times.
Posted 2 months ago in Lawsuits / Disputes
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i am asking this for a Texas LLC. The LLC is for Motor Carrier's who haul for hire in interstate commerce. The newly formed LLC is currently being taxed as a partnership.
The LLC had purchased liablity insurance and the second member had purchased additional bobtail insurance on his truck. The first member neglected to purchase bobtail insurance and then totaled his truck just two months into the business being formed. When the first members truck was in the accident a wrecker was called to the scene and HazMat was also called due to diesel fuel being spilled. No one was hurt during the accident. Answers (1)
Steve Fromm
This attorney is licensed in Pennsylvania.
Posted 2 months ago.
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Generally, corporations protect their shareholders from liability for corporate debts. Generally, LLCs are corporations for state law purposes but taxed as partnership for tax purposes only. It would appear then that the second LLC member would not be obligated for any corporate debt that may arise from this accident. However, the assets of the LLC could be reached if a judgment is entered against it.
LEGAL DISCLAIMER Mr. Fromm is licensed to practice law in PA. The response herein is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received. |
