piercing the veil

Member Avoids Personal Liability for LLC's Withheld Taxes

Doug Batey
May 09, 2011 20:59

An LLC member ordinarily is not liable for the debts and liabilities of an LLC simply by virtue of being a member. E.g., Wash. Rev. Code § 25.15.125; Or. Rev. Stat. § 63.165. Many states, however, impose personal liability for unpaid taxes on those within a business who have authority for...

Business Lawsuit Roundup

February 27, 2011 22:00

New Connecticut business litigation decisions and lawsuits of interest for February 2011: Appellate Decisions: Schirmer v. Souza The Appellate Court upheld an award in favor of the plaintiffs on claims of unjust enrichment concerning renovations to a residence on defendants' property. In a somewhat...

Piercing the Veil vs. Direct Member Liability in Connecticut

October 05, 2010 23:09

  Claimants against LLCs often go beyond the LLC and seek recovery from individual members or managers of the LLC. They do that because in many cases, to quote Willie Sutton, that’s where the money is. The LLC may not be able to satisfy a claim, but a member or manager who turns out to...

Washington LLC Member Knowingly Receives Unlawful Distribution - What's the Remedy?

September 08, 2010 16:18

The Washington LLC Act prohibits an insolvent LLC from making a distribution to a member. RCW 25.15.235(1). Either type of insolvency will do – the LLC is unable to pay its debts as they come due in the usual course of business, or the LLC’s liabilities exceed the fair value of its...

Does A Limited Liability Company Protect Its Members From Personal Tort Liability?

August 23, 2010 18:22

Not always.  An individual member of an LLC or an officer of a corporation may be individually liable for their own torts.  This rule is well settled and the Connecticut Supreme Court reaffirmed it in Strum v. Harb Development, which will be officially released on August 31,...