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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 53675
Experience:  29 years of experience as a tax, real estate, and business attorney.
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I lost money in a LLC. They stopped making payments completely.

Resolved Question:

I lost money in a LLC. They stopped making payments completely. Do I have any recourse?
Submitted: 5 years ago.
Category: Tax
Expert:  Richard replied 5 years ago.
Good afternoon...Were you a creditor of the LLC or were you a member of the LLC? Thanks.
Customer: replied 5 years ago.



Expert:  Richard replied 5 years ago.

Thank you. Unless one of the members personally guaranteed the obligation and/or you could prove fraud, then you are limited in your recourse to the assets of the LLC. If the LLC has no assets, which is likely given their behavior, it is likely that your chance of collecting is very small. I'm not going to sugarcoat this...most likely, any money that you spend will be wasting good money on bad.



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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Customer: replied 5 years ago.

Gotcha, there is a FBI investigating the company for fraud right now. I wasn't sure what to do in the meantime.

Expert:  Richard replied 5 years ago.
You have a good while until any statute of limitations would run. I would sit and wait and if fraud is proven, you can file a claim against the individual members...but in most cases, even when fraud is concerned, by the time they pay their fees and their forfeitures to the FBI, there is generally very little money left.
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