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LLC is not a shield for criminal conduct. It protects personal assets of the company owners. [0] Generally speaking in American law such protections disappear i
by hodgesrm 4y ago
LLC is not a shield for criminal conduct. It protects personal assets of the company owners. [0] Generally speaking in American law such protections disappear if you commit fraud or similar malfeasance. For examples, courts will break contracts including liability limits if a party commmits fraud. (IANAL but I read a lot of contracts in my day job.)
[0] https://www.investopedia.com/terms/l/llc.asp https://www.investopedia.com/terms/l/llc.asp
- d110af5ccf 4y agoThe relevant term is "piercing the corporate veil" and it pretty much only happens if someone intentionally and knowingly engages in criminal acts.
- senko 4y ago> if someone intentionally and knowingly engages in criminal acts. Can you unintentionally and unknowingly engage in a criminal act?
- d110af5ccf 4y agoIt depends. At least in the US your intent is important to most laws but not all laws. In other words, the judge or perhaps a jury will decide the answer to your question.
- TheCoelacanth 4y agoIt's somewhat rare, but yes[1]. [1] https://en.wikipedia.org/wiki/Strict_liability_(criminal) https://en.wikipedia.org/wiki/Strict_liability_(criminal)