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

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?

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Attorney answers 3


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 only be provided after consultation by an attorney licensed in your jurisdiction. The answer to question does not create an attorney-client relationship or otherwise require further consultation. Mr. Smith is licensed to practice law throughout the state of California with offices in Los Angeles County. He is authorized to handle IRS matters throughout the United States, and is also licensed to practice before the United States Tax Court.


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 analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also terms and conditions item 9, incorporated as if it was reprinted here.


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.