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  1. #1
    Join Date
    Feb 2009
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    Default Can I Sue a Limited Liability Company

    My question involves business law in the state of: Massachusetts, hi I am a contractor doing a job for a customer on his home and are in the process of drawing up a contract. He has now informed me that he wants the agreement between my business and his Limited Liability Co.

    What does that mean for me if he does not pay me for the job I do? What is my legal recourse to get the money owed if he is under the umbrella of LLC?

    Please advise concerned about signing a contract with him>?

  2. #2
    Join Date
    Sep 2005
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    Default Re: Can I Sue a Limited Liability Company

    The issue isn't, "Can I sue his LLC." The issue is, "Does the LLC have any assets? And if not, can I still make a valid claim against him?"

    I would be suspicious that this client intends not to pay you. Why would his LLC contract to do work on his personal residence? If you're a licensed contract you may be able to protect yourself with a building contractor's lien, but I'm suspicious of the whole arrangement.

  3. #3
    Join Date
    Feb 2009
    Posts
    4

    Default Re: Can I Sue a Limited Liability Company

    Yes he has assets that is why he created a limited liability co. I think I may have figured this out just by the name. I was afraid that if he didn't pay me the money he owed me that he was to protected and i couldn't sue him for it. But now I realize he does have liability its just limited so therefore I would be able to sue him but only to a certain or limited degree. Hence Limited Liability. I think it just means that if I did sue I would not be able to just take it all. He has limited access to his assets.

  4. #4
    Join Date
    Jul 2007
    Location
    Florida
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    2,344

    Default Re: Can I Sue a Limited Liability Company

    Why would you agree to such an arrangement? If it is so important to him that he won't hire you without that provision then that's pretty much proof that he isn't being above board with you. You could contract with his LLC if he is willing to give you a personal guarantee. Why would he be reluctant to do that if he doesn't intend to default on his financial obligation to you? These are questions you should ask yourself before you do any work. I know times are hard and folks have to take work where they can get it, but it's better not to do work than to do it and not get paid - and have no hope of collecting what you are owed.

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