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I understand that an LLC member can NOT represent the LLC in…

Customer Question
I understand that an...

I understand that an LLC member can NOT represent the LLC in court. For example, an LLC member can not representy the LLC for evicting a multi-family tenant (where the LLC is the owner/operator of an apartment complex).

Lawyer's Assistant: Because laws vary from place to place, can you tell me what state the property is in?

I was wondering what type of structure might enable partner #1 to do evictions while partner #2 had protections from liablities of partner #1? Partner #2 being a passive participant, partner #1 an active participant. I have read that general partnerships are "risky" do to liablities of one partners actions vs the other.

Lawyer's Assistant: Has any paperwork been filed?

We had an LLC or say 15 years. Recently dissolved prematurely, not thought through. Now we need to re-organize, potentially create a new LLC but able to restructure...

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

I believe that sums it up thanks

Submitted: 1 year ago.Category: Real Estate Law
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Answered in 8 minutes by:
7/31/2017
Real Estate Lawyer: Legal Eagle, Lawyer replied 1 year ago
Legal Eagle
Legal Eagle, Lawyer
Category: Real Estate Law
Satisfied Customers: 15,636
Experience: Licensed to practice before state and federal court
Verified

Hello! I am a licensed attorney, eligible to practice in front of state and federal court, who is ready to help. I have a nearly 100% satisfaction rating (click here to see my ratings information) so all that means is that you can count on me to help today. The answer to your question is yes, an LLC member cannot represent the LLC in court. Generally, in LLC is going to protect both partner 1 and partner to. This is regardless of whether one partner is active and another partner is passive. If it is a general partnership, without the protection of an LLC, then both partners are going to be held jointly and severally liable for any lawsuits that occur. This is why LLCs are very popular because if your company is sued, then only the company's assets are going to be at a risk; not your personal assets.

Follow up questions are free, so please feel free to ask away. You can also click here in the future to request me individually. If you don’t have any additional questions, were you satisfied with my service today?

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Customer reply replied 1 year ago
If a general partnership was created where one member was an individual and the other member was a Sole Member LLC, could the partner who is an "individual" represent the partnership in court, i.e. do tenant evictions in court ? What vulnerabilites/liabilities would you see in this set up vs a 2 member LLC?
Real Estate Lawyer: Legal Eagle, Lawyer replied 1 year ago

I can see what you mean. The answer to your question is yes, the end of it would be able to represent the partnership in court. Only the llc's are prohibited from having somebody from the organization represent them. As far as the vulnerabilities/ lie liability the individual May not have the same protection as the person that owns the sole member LLC. The person with the sole member LLC will have the protection of the LLC of the partnership is sued. Therefore, for example, if a tenant decides to sue the partnership, and the partnership losses, the individual may lose their personal assets whereas the individual that is in the partnership as an LLC will only have that LLC lose their assets, and their personal assets will be shielded. Does that make sense?

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Real Estate Lawyer: Legal Eagle, Lawyer replied 1 year ago

Hello, it’s been awhile since we connected so I wanted to check in with you to see if you had any further questions or if there is anything else I can assist you with today. Please reply here and let me know. Thank you.

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