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I think this is why you should always have an LLC when you do a Kickstarter. That way if your attempt fails, the funders can sue the LLC for their money back, t
by tinco 11y ago
I think this is why you should always have an LLC when you do a Kickstarter. That way if your attempt fails, the funders can sue the LLC for their money back, the judge can award it and the LLC will file for bankruptcy.
That way only people who ran their LLC recklessly (i.e. not following the LLC rules) can be held personally liable. The 'good-hearted' will simply get a bankrupt LLC on their name.
- tedunangst 11y agoWill it matter? It seems the people most likely to be sued are exactly those for whom the LLC will offer no shield.
- arrosenberg 11y agoNo, not in cases like this, given that most judges would pierce the veil in cases involving bad actors. However, given that a precedent for suing a failed Kickstarter was just set, it makes a ton of sense to form an LLC before doing a Kickstarter now, since funders may not make rational decisions about whether to sue or not if they don't get their rewards.
- tedunangst 11y agoI would argue the precedent is now set for "bad kickstarters" not just "failed kickstarters", but ok.