QUESTION
I am owed money by an llc that closed down last year. Are they still required to pay me?
Asked on Jun 26th, 2013 on Business Law - New Jersey
More details to this question:
I found an old check (that got lost while I was moving) from a company I used to work for. I texted my boss to see if it was ok to deposit it or if he would like me to wait. He did not respond so the next day I deposited it. It bounced. I called him from another phone and told him what happened. He said they closed the LLC last year June. He said he will not pay me (although this money was filed on my tax returns). Is he required to still pay me for my work in 2012?
1 ANSWER
The LLC is required to pay you (assuming the statute of limitations has not yet run; you don't specify how long ago you received the check), but if it is closed and has no assets, it can't. Normally, members of an LLC are not personally liable for the LLC's debts, but in some states the shareholders of members of an employer can be personally liable to pay wages under certain conditions. I do not know whether this is true in New Jersey. Also, if the LLC distributed money to its members when it shut down, without paying its obligations (such as your wages), those distributions could be considered fraudulent conveyances; you could theoretically sue to get your wages paid from those distributions. I say theoretically because, since you forgot about the check I assume it is not a large amount of money, probably not worth a fraudulent conveyance lawsuit.
Answered on Jun 27th, 2013 at 10:36 AM