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Falsely stating a business is an LLC and it is not

Woodbridge, VA |

This guy stated that he was part of a business when he was not and the business was a sole proprietorship and was collecting money for such from December 2012-April 2013. In May 2013 to cover himself for his illegal doings, he and his wife made the business an LLC and made him the head of the company after someone he conned reported him to the Virginia State Police CBI for fraud and attempting to garner money through deceptive means. My question is: He is now the LLC head of the company from May 2013 onward, but was he covered for the previous months he did this? I say no and that he broke the law. What do you think?

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Attorney answers 3

Posted

Unlikely, it's not as if the company simply failed to get authority to do business in the state, but it was an LLC otherwise. It misrepresented its limited liability status. I'd speak to an attorney, like myself, regarding your matter.

The answer provided is for general information purposes and cannot be relied upon. In order to provide legal advice, one must engage with a live attorney; this answer does not create such attorney-client relationship.

Asker

Posted

He did so to cover himself after conning someone out of a check using the premise that he was collecting for the business and was not at as he pocketed the money and the clients would have to pay twice.

Posted

The LLC would -- possibly -- shield him from liability, only if it existed. If he engaged in bad acts before the LLC existed, setting up an LLC would not retroactively protect him.

Posted

An LLC cannot shield an owner from personal liability for criminal conduct.

My answer is not intended to be giving legal advice and this topic can be a complex area where the advice of a licensed attorney in your State should be obtained. Please click "helpful" or "best answer" if my answer added any value or add a "comment" if you have more info for me to help you get a better answer.

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