when you sue someone, and if this person also has an LLC, can you sue the LLC also if they are hiding assets behind the LLC
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when you sue someone, and if this person also has an LLC, can you sue the LLC also if they are hiding assets behind the LLC
If it is a personal claim, NO. If you get a judgment against the owner in the future, then you could go after the assets of the LLC too. (Up to the degree of what percentage that the person you have a judgment against owns of the LLC.) If he owns 10 percent of the LLC that would be all you could touch. But you can't do anything to the LLC at this point if it is a personal claim.
Unless the tort was carried out by the manager of the LLC on behalf of the LLC, you can't sue the LLC.
Until you get a judgment it makes no difference where the assets are or what your target is doing with them. You have no standing to do anything about it.
You sue the person who caused you harm.
The person's ownership interest in the LLC is an asset - something you can probably pursue for satisfaction of the debt in the event they don't pay a judgment.
I'm not sure what they're doing to "hide" their assets "behind the LLC", but if it's a single member LLC it may be possible to get a court to disregard it as a sham. But if the claim has nothing to do with the LLC, and is purely against the individual, I would regard that as something to do when you're trying to collect your judgment, as the LLC has done nothing to harm you.
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