QUESTION
Can a sole owner of an LLC take unaccounted for money?
Asked on Sep 16th, 2015 on Business Law - Michigan
More details to this question:
I work for a sole owner of an LLC and I know he is taking money that is unaccounted for from the company. I want to know if this is legal
1 ANSWER
Taking the money is not, by itself, illegal. However if, as seems likely, the owner is taking the money without accounting for it in order to defraud creditors and/or taxing authorities, that would not be legal. Moreover, these actions could result in the "piercing of the corporate veil", resulting in the owner becoming personally liable for the LLC's obligations.
Answered on Sep 16th, 2015 at 11:21 AM