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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 9713
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Are the Members of a LLC personally liable Property

Customer Question

Are the Members of a LLC personally liable for Personal Property taxes if the LLC has no assets with which to pay the Personal Property tax bill?
Thank You
Submitted: 5 months ago.
Category: Tax
Expert:  Lane replied 5 months ago.
Hi, looks lie no one's picking this up. Let me try to help..The place to start, the foundation, is that the corporate liability protection of the LLC protects, the members from having their OWN assets attached....The property tax authority will, depending on how aggressive they are, try to do what's called "pierce the corporate veil."...There are couple of ways to do that (1) claim "alter ego" theory (you might want to Google that phrase) which is the claim that the LLC was just an alter ego of it's members (owners) ... that the LLC did not have a business purpose, but was done, tather , to evade any tax responsibility, and...(2) Showing that you did not follow the Corporate law (a subset of that being LLC law) of the state, thereby making the LLC invalid...So, yes it DOES protect you personally ... IF you've done thing "right," so to speak....The other thing they can do, is take the LLC itself (assuming there's anything of value there)....Please let me know what questions you have from here....Lane......I hold a law degree (JD, Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice, since 1986
Expert:  Lane replied 5 months ago.
Hi,...I’m just checking back in to see how things are going...Did my answer help?...Let me know…...Thanks,Lane…

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