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I own an LLC and have had a law suit filed against me

I own an LLC...

I own an LLC and have had a law suit filed against me personally, I challenged it and now they are changing it to d/b/a. I understood that if I formed a state approved LLC, it protected me from being personally sued for debts incurred by the business, not saying I dont owe the debt just that funds have been really short and I havnt been able to pay as fast as they wanted. Am I correct that as an LLC it is not d/b/a and they still need to file the law suit against the business not me personally

Lawyer's Assistant: Can you tell me what state the LLC is registered in?

South Dakota

Lawyer's Assistant: Has anything been officially filed? If so, what?

The lawsuit has been filed and a court date was set and now I received another letter from the clerk of courts saying the law suit should have stated my name d/b/a my business

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

I just want to know if they can list me personally or if I can contest that and make them file against the business .. I just don't want the lawsuit against my name and I understood that when I formed the LLC that protected me personally

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Answered in 14 minutes by:
3/23/2018
RGMacEsq
RGMacEsq, Attorney
Category: Business Law
Satisfied Customers: 18,006
Experience: Licensed Texas General Practice Attorney
Verified

Thank you for using JustAnswer.

I'm sorry to hear about your situation. Generally speaking, yes, an LLC protects you personally for debts incurred by the LLC, assuming that it was incurred in the name of the LLC and not you personally. What I mean is that if you incur debt prior to the LLC being opened, then that will be debt in your personal name, not the LLC. If your name is ***** ***** contract as the borrower, and not the LLC, then you're going to be liable. But if the contract is in the name of the LLC, and it's clear that you're only signing on behalf of the LLC and not guaranteeing the debt or signing "individually", then your best argument would be that they sued the wrong entity. That is, your defense in a motion to dismiss case would be that you're not liable because the contract was with the LLC, not with you.

Now it's possible that they could get around this with a "piercing the veil" argument. In other words, if you're treating your business essentially like a DBA rather than a separate entity, then the court can find that it's merely an "alter ego" and that you could be liable for it. But they have to plead that in the pleadings. It's not enough to say that you're on the hook, but rather that it ostensibly was incurred by the LLC, but that the LLC was the alter ego of you and that you should be on the hook for that. If they can't prove that (or assuming that they don't even plead that) then it should be dismissed against you.

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 the time and effort that I spent on this answer unless and until you rate it positively (3 or more stars). Look for the stars on your screen (★★★★★). You may need to scroll left/right/up/down to see these stars, but note that the rating is what closes out this question, so it is necessary that you do so.

Thank you, ***** ***** luck to you!

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My apologies, but I must assist the other customers that are waiting. 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.

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If you feel that I have gone above and beyond in this answer (my average answer is about 10 minutes) bonuses are greatly appreciated. Thank you, ***** ***** luck to you!

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I see that you have not responded in some time. Please note that this question is still open until you rate it. I believe that I have answered your question, but 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 the time and effort that I spent on this answer unless and until you rate it positively (3 or more stars). Look for the stars on your screen (★★★★★). You may need to scroll left/right/up/down to see these stars, but note that the rating is what closes out this question, so it is necessary that you do so.

If you feel that I have gone above and beyond in this answer (my average answer is about 10 minutes) bonuses are greatly appreciated. Thank you, ***** ***** luck to you!

▼ RATING REQUIRED! ▼ Please don't forget to Rate my service positively. It's only after you rate that I am credited.

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RGMacEsq
RGMacEsq, Attorney
Category: Business Law
Satisfied Customers: 18,006
Experience: Licensed Texas General Practice Attorney
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