Real Estate Law
Have Real Estate Law Questions? Ask a Real Estate Lawyer.
Thank you for using JustAnswer. I am researching your issue and will respond shortly.
That's somewhat true, but only insofar as the profits have been kept in the business (not distributed to members) OR the cause of action that you're sued on arose before the profits were distributed. So if the profits are still in the business, or the cause of action arose before those profits were distributed, those profits could be at risk. But if a cause of action arises after profits are distributed, then those profits would not be at risk.
Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, XXXXX XXXXX luck to you!
I think I understand, but a follow-up question to clarify: suppose that the profits from past activity in the LLC have long ago been distributed. Now I use the same LLC name for a new multifamily, and create new profits in the business.
If I am then sued for an action involving one of the past properties (we did some inadequate wiring in a building a decade ago), are the new profits from the new multifamily then at risk?
Got it. Thanks very much.
The reverse would not be true (in that past profits distributed would not be recoverable)
But new profits could be.
My pleasure.If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, XXXXX XXXXX good luck to you!
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).