What happens if you own part of a business?
If you own all or part of a business, whether as a sole proprietor or in a general partnership with someone else, you may be exposed to unlimited personal liability for the business’s debts. If you are in a general partnership, you could be liable for the poor business decisions of your partners.
Who are the owners of a limited liability company?
Limited liability companies have multiple owners. Each person who owns part of an LLC is a member of that LLC. In some LLCs, each member is involved in running the business, while in others, there are some members who are silent and others who manage the business, and these members are called “member-managers.”
What happens when a partner or co-owner is stealing from?
The next step is to contact an experienced business and litigation attorney who can guide you through the process. The next step is to obtain real evidence that theft is occurring and to identify the person or persons involved. It is not prudent to simply accuse a partner or co-owner of stealing money from the business without solid evidence.
What happens if your business partner lies to you?
Your business partner lied, you believed and relied upon the lie and suffered losses or “damages” as a result of your business partner’s deceit. Your associate may be guilty of “embezzlement”, which is the theft of money or a business asset by a person in a position of trust within your company.
Can you sue the owner of a corporation?
If a business is an LLC or corporation, except in very rare circumstances, you can’t sue the owners personally for the business’s wrongful conduct. However, if the business is a sole proprietorship or a partnership, you may well be able to sue the owner(s) personally, in addition to suing their business.
Can a sole proprietorship be sued as an individual?
However, if the business is a sole proprietorship or a partnership, you may well be able to sue the owner(s) personally, alongside suing their business. This is advantageous, since the more people or entities you can sue, the greater your chance of collecting a judgment or settlement.
What happens if the owner of Sue’s Shoppe dies?
In a sole proprietorship, the business and the owner are essentially the same. If Sue, the sole proprietor of Sue’s Shoppe dies, so will the Shoppe. Sue’s estate will liquidate the assets of the business to pay off the business debts, and anything remaining will be distributed in accordance with Sue’s will.
Can a business be sued for personal injury?
If a business is legally responsible for causing your injury — or the underlying accident that led to your injury — you can usually file an insurance claim or personal injury lawsuit against the business. You may also, depending on the business structure, be able to sue the owner (s) as well.