The co-owner of our business removed funds from my PayPal account (the account was in my name not in the name of the business) and took off with the money. If the PayPal account was in my name and not in the name of the business does that mean I can be held financially responsible even if we are a L.L.C.?
Occurred in Maryland
Social Security Lawyers
Responsible for what and to whom? Are you asking because PayPal wants you to replace some money back into your PayPal account? Or does your bank want some money? Or who? Or what?
You should speak with a local business attorney, explain all the facts, and let her or him advise you on your liability issues and options.
In general, if it was your personal account, and if there is some liability issue based on your personal account then yes, you might have responsibility for that liability arising from your personal account. You in turn might have an action against whomever absconded with funds from your personal account - so long as you meet those pesky burden of proof issues and such.
It is not clear why you think your LLC co-member's involvement might relieve you of personal responsibility on your personal account, but it does not. Were you using the personal PayPal account for business purposes? If so, the answer may be worse than you had hoped for, as you may have both personal liability and liability as a co-member of the LLC (the LLC portion of any such liability generally might be limited to the extent of your contribution to the LLC, however you may have conflated your personal and LLC affairs so that a court would consider them one and the same and hold you liable in both instances.)
Disclaimer Information on this site is provided by Brian Scott Wayson as general information, not legal advice, and use of this information does not establish an attorney-client relationship. If you have questions about your specific situation, please call an attorney.
4 lawyers agree
Divorce / Separation Lawyer
I agree with my collegue. I think that you would be well advised to speak with an attorney.
Please be advised that any information or advice given herein does not constitute an attorney client relationship. Further, before taking any actions or deciding not to take any actions, you should seek counsel of an attorney. This forum cannot provide you with the anyalysis and detail necessary for a full and accurate opinion to be rendered.
Limited Liability Company (LLC) Lawyer
The existence of the LLC strikes me as irrelevant here. Your business partner, acting individually, misappropriated money from a financial account in your name, individually. The mere fact that each of you are also members of an LLC doesn't change the personal nature of the wrong and harm in this case. If your business partner, acting individually, stole your car, that you own individually, would it make any difference if both of you also happen to own stock in Apple?! No.
Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer. For me to give you legal advice or opinion, you would need to hire me to be your lawyer, and then we would need to discuss this in detail and go over the documents.
3 lawyers agree
Securities / Investment Fraud Attorney
You're a principal of the LLC and the other fellow may well be your agent, actually or inherently. You definetely need to seek counsel to straighten things out before they get out of hand.
The foregoing is not legal advice nor is it in any manner whatsoever meant to create or impute an attorney/client relationship.