Collecting on Debt with LLC Firm no longer in business

[matt8tx]

My small business is owed about $5,000 from another LLC (formed in Delaware) that we performed some marketing consulting for back in 2007. The guy has indicated his LLC is no longer in business. But I'm not sure he has legally filed the proper documents. Do I have any legal recourse?

 

[dee_dub]

Check Delaware's corporate registry to ascertain the creditor's status. If it's still in existence, go after it.

I'm not an expert in Delaware corporate law. But generally, when a company is dissolved, the owner or directors are required to file a statement to the effect that all its debts and liabilities were discharged. If the owner in this case filed a false statement, the dissolution may be invalid or the owner may be personally liable.

Often there is a limitations period requiring you to sue within a certain time after dissolution. You should move quickly to ensure you're not barred by the expiry of the limitation period.

 

[4Bviper]

I have a similar problem, except in the state of California.

I won a small claims case against a LLC. They didn't officially dissolve the business but I hired a PI to seek out their assets and found that they had closed their business bank account.

Am I able to go after the LLC's main partner whom I made the initial deal with personally in small claims since I can't collect from the LLC?

 

[dee_dub]

Am I able to go after the LLC's main partner whom I made the initial deal with personally in small claims since I can't collect from the LLC?

You don't have a similar problem. Your debtor still exists, it just has no assets to recover against.

You can try going after the main partner. Whether or not you will be successful is up to a court to determine. Check this out: http://en.wikipedia.org/wiki/Piercing_the_corporate_veil