I had a business in an LLC, in NY, which was sold a year ago, February 2007. Currently the issues are:
- There was a serious accident, in Aug 2006, and a former employee's was seriously injured, his attorney filed a notice to sue, last October. Although state worker's comp laws bar a lawsuit against my company, my attorney correctly guessed this employee will sue someone else, like my landlord, and then, have this third party pull me in, as co-defendant. The landlords' insurance company, and mine was notified, though my insurance called to say my policy does not cover employees as workman's comp is supposed to. I heard nothing since Oct 2007.
- There's a few oustanding bills, 4 of them, but I do not intend to put additional funds into the defunct business. It amounts to a few thousand dollars. Two of the bills was never even changed into the name of my company, still under the name prior owners, for various reasons, and one of these two bills, the phone bill, was assumed by the new owner. who then disputed the bill.
I spoke to my attorney, and he advised:
1. Keep the LLC open for the forseeable future. Though not 100% certain, feels dissolving the LLC would eliminate the liabilty shield, and creditors can then come after me personally.
2. Tells me I have no obligation to answer summons if creditors sue under the names of the prior owners. Thus far, I avoided all contacts with collection agencies that called my home.
3. To analyze all of issues completely, if need be, he'll need to spend a few hours of research, and as a rough guess, will bill me about $700.00.
4. I planned to close the bank accounts, to avoid service charges and surprises. Afterwards, I plan to pay fees with money orders, if needed.
I spoke to my CPA, and we're leaning towards:
1. Filing the final tax returns, state and federal, for the year 2007.
2. Continue annual filings for the LLC, to keep it active, checking off "not active", and thus skipping the annual $500 franchise fee.
A. Does it make sense to spend more money on my attorney, $700 to research, or just simply wait for someone to sue??
B. Are there any issues my attorney or CPA overlooked??
C. Any need to file bankruptcy, or just wait and see??