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I lost money in a LLC. They stopped making payments completely.

Customer Question
Do I have any recourse?...
I lost money in a LLC. They stopped making payments completely. Do I have any recourse?
Submitted: 7 years ago.Category: Tax
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Answered in 1 minute by:
11/1/2010
Tax Professional: Richard, Tax Attorney replied 7 years ago
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55,810
Experience: 29 years of experience as a tax, real estate, and business attorney.
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Good afternoon...Were you a creditor of the LLC or were you a member of the LLC? Thanks.
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Customer reply replied 7 years ago

creditor

 

Tax Professional: Richard, Tax Attorney replied 7 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.

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Customer reply replied 7 years ago

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

Tax Professional: Richard, Tax Attorney replied 7 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.
Richard
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