Can I sue an LLC for money owed me?
Can I sue an LLC for money owed to me? How do I sue an LLC? Watch as Attorney Tom Olsen answers these questions and more!
Attorney Tom Olsen: Chrissy here is a text, tell me what that text says.
Chrissy: The text, Tom, is that this person has an LLC and this LLC owes that man $10,000 and wants to know what he can do to collect.
Attorney Tom Olsen: Well, if the LLC owes you that money that means you could sue that LLC. In other words, you cannot sue the owner of that LLC personally; you’d be obligated to sue the LLC. You’re 10,000 bucks, that means you’re over the 5,000 small claims limit therefore the clerks are not going to give you the forms, are not going to help you with it so now you’re talking about really hiring a lawyer to try and collect 10,000 bucks and often suing somebody or suing an LLC is the easy part; trying to collect on it is the hard part.
So really, it kind of depends on whether that LLC has any assets or any hopes of income that could pay you if you happen to sue the LLC.
Chrissy: And Tom, you’re right. Is that the advice you always give to people is the tough part is collecting it.
Attorney Tom Olsen: Yes. So, it can even be harder when you’re talking about suing an LLC. You’re going to have to give some consideration about whether you want to spend money to try and collect this money. And one thing that can come out is suing somebody or suing a business if you don’t get paid is that if you try to collect it and you’re unable to, you’ve really put some effort into it, it can be a tax deduction for you. So, you can check with your accountant or CPA to see how much of that might help you as far as a tax deduction if you sue that LLC and you’re not able to collect on it.