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.?
It is unclear from the question exactly what you mean by "financially responsible."
What funds were removed? Were they LLC funds intended to be made available to pay LLC debts? How did the LLC funds get into the Paypal account? Why/how did co-owner get access to the Paypal account?
As the other asnwer points out, you may need to file a criminal complaint with local law enforcement.
As for the LLC, regardless of what happens to its funds - lost, stolen, or spent - the LLC remains responsible for its debts. If the LLC is held liable for a debt it cannot pay, then the creditors will come knocking on the doors of the LLC owners, essentially looking to pierce the LLC protections. If the LLC was not run properly with all business income and expenses seperated from the owners income and expenses, and accounts and funds were co-mingled on a regular basis, a court may allow the creditor to attach assets of the owners.
The Limited Liability Company is a flexible and effective entity structure for asset protection planning, but simply filing articles and adding "LLC" to the business name does not create the protective shield. The operating agreement and day-to-day administration of the LLC must also be handled correctly to ensure the protections do not fail when needed.
Please note that this answer is generic in nature and does not constitute legal advice with regard to any particular circumstances or facts and does not establish an attorney client relationship.
It sounds like an individual property crime that you'd want to report to the police unless the account was regularly used for business purposes and you'd given the co-owner access to the account previously; then the police will probably tell you it's a civil, not criminal, matter.
This response it is not legal advice and does not create an attorney-client relationship with either Mr. Duvall or Duvall Law Firm, LLC. The response is only provided as general information in response to the question presented and for the purpose of legal education to the public. The question, as presented, may leave out significant and important facts which, if known, could significantly change the response, make the response useless, or worse, render the response incorrect as applied to the actual facts of the matter. It is recommended that you consult with an attorney licensed to practice in your jurisdiction if you want legal advice upon which you should rely. By using this site, you understand and agree that there is neither an attorney-client relationship nor an expectation of confidentiality between you and the responding attorney. The law changes frequently and varies greatly from jurisdiction to jurisdiction. The information and materials provided are general in nature and may not apply to a particular factual or legal circumstance, regardless of what is described in the question.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline