Can I be sued personally as a member of an LLC for actions occurred by operation of that LLC?
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Can I be sued personally as a member of an LLC for actions occurred by operation of that LLC?
I have established a LLC for a company that I have which will rent a bus for transportation for weddings, bachelor parties, etc. My question is, can I be sued personally if someone gets hurt or injured on the bus? I was under the impression that that is what a LLC is for, to provide limited liability or protection, is that right?
Asked on January 10, 2011 under Business Law, Nebraska
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If you are the driver of the bus when there is an accident, or otherwise, by your person actions contributed to the accident, then you could be sued. Having an LLC acts as a "firebreak" to protect you personally, and your personal assets, from business-related liability. However, it does not insulate you from personal liability for your own direct acts. Thus, if you do something which you could personally be sued for regardless of who owns, leases, etc. the bus or is contracted with for the transporation, you could still be sued in that capacity. The most common example, would as noted, flow out of your driving the vehicle; the negligent driver of a company vehicle may be sued as well as the company itself being sued.
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