That's not how it was explained to me. They can try and attempt to go after the business owner, but won't go far. The owner is protected in all aspects. Imagine how many owners would be broke if this was not true!
I asked my attorney to post here, but he is not willing to do so. Like I said earlier, I think everyone should consult with their attorney and accountant and talk realistic instances related to DJ businesses. Not hypotheticals relating to cars.
Hypotheticals relating to cars? Wth? The hypothetical was a business - a dump trailer driver.
Obviously, the reason they're coming after a business or the owner depends on the situation. While it is not true that in all situations, the owner can be personally sued, there certainly are situations where they may be. How many 'owners' are actually doing the work vs running the business and have people working for them. Was the owner at fault or was an employee of the company? How is the owner running the business - is it a business standing alone or is it just another side of the owner? As an S/LLC, It would appear if an employee faults, then the S/LLC protects the personal assets of the owner. The question becomes who was at fault. Like I said earlier, I am not an attorney, nor do I play one on tv. Like you, I have also posted info from attorneys (with links) that clearly defend what I have posted.
We live in a litigious society and some people love to sue each other. There is no protection from that. Look how many people are named in a lawsuit when something happens.
Here's a good write up:
Liability Protection Fallacy Of An LLC
Scenario 1:
Can I sue the owner of a company personally if their company owes me money?
If the company that you believe owes you money was incorporated, then it is almost certainly the case that you cannot sue the owner personally. That because the owners of a corporation (or a limited liability company or LLC) are not liable for the debts and obligations of the corporation (or LLC). That's the main reason that small business--even self-employed contractors and freelancers--should set up as an LLC or corporation. There are some "limited" possibilities for recover:
1) Obviously, if the owner personally guaranteed the debt, he could be sued.
2) If the owner personally did something wrongful, it may be possible to sue him for his wrongful act as well the company for its breach.
Scenario 2:
Can a customer sue me personally even if I am i - Q&A - Avvo
I hope someone can help. One of my employees damaged a customers car accidentally (I have a small detailing business). My customer is threatening to sue my corporation and me personally. Can they go after me personally even if I didn't cause the damage? If so, how/what grounds? I thought I was protected by my corporation? I'm concerned that I might have to close my business so they don't sue me! I can't afford the expense or trouble. Help!
They can always sue you personally, but they would either have to allege that you personally did something wrong (e.g., YOU damaged the car), or allege that you are the alter ego of the corporation and that the corporate veil should be pierced because an injustice will result if they cannot go after your personal assets. Such allegations are fairly common despite the protection of the corporate shield, which is why lawyers who represent small businesses insist that the corporate formalities be observed. Presumably, you have general liability insurance, so it won't be a big deal either way. Unless your employee damaged a Duesenberg, detailing damage shouldn't be ruinous.
Scenario 3 (which explains more of what you're talking about):
As shown below: The main limitation is “in the course of business.” So, for example, if you are hit by a delivery truck making its rounds, or injured by roofing tile dropped by a roofer, that’s an injury caused by someone as they were doing their job and their employer may be liable.
Also note: However, to the extent that an injury was caused by an employee in the course of employment, you can sue the employer as well as the employee. What does this mean? It means if an employee is at fault, the business and the employee may be sued. If it's the owner performing said actions, then the business and the owner may be sued.
Business vs. Owner vs. Employee Liability for Personal Injury - AllLaw.com
If a business is legally responsible for causing your injury -- or the underlying accident that led to your injury -- you can usually file an insurance claim or personal injury lawsuit against the business. You may also, depending on the business structure, be able to sue the owner(s) as well. In rare cases, you may have a claim against the specific employee(s) who caused you injury. Read on to learn more about injury claims against a business.
Businesses are Liable for The Acts of Their Employees in the Course of Business
Under the legal theories of agency liability and respondeat superior, an employer is responsible for the acts of its employees, when those acts are done in the course of employment.
So, if the employee would liable for injuring you -- i.e. if you could sue the employee -- the employer will usually be responsible, too. The main limitation is “in the course of business.” So, for example, if you are hit by a delivery truck making its rounds, or injured by roofing tile dropped by a roofer, that’s an injury caused by someone as they were doing their job and their employer may be liable.
On the other hand, if after his shift ends, a store clerk happens to get into a fight with you in the mall parking lot, the store would not be liable -- the clerk is doing something (fighting) that is not part of his job, is on his own time, and is not in his employer’s premises.
However, to the extent that an injury was caused by an employee in the course of employment, you can sue the employer as well as the employee.
If It’s Not an LLC or a Corporation, You May be Able to Sue the Owner(s) Personally
One of the most important -- if not the most important -- purposes of a limited liability company (LLC) or corporation (inc.) is to shield the owners from business-related liability. If a business is an LLC or corporation, except in very rare, very special circumstances, you can’t sue the owners personally for any wrongs the business committed.
However, if the business is a sole proprietorship or a partnership, you may well be able to sue the owner(s) personally, alongside suing their business.
This is advantageous, since the more people or entities you can sue, the greater your chance of collecting a judgment or settlement.
Scenario 4:
Can an Owner of an LLC Be Sued Personally?
Limits of Personal Liability Protection
No LLC or other legal business structure provides absolute protection for its owners from liabilities that may occur in connection with business operations. An LLC owner will be personally liable for his conduct that constitutes fraud or is illegal regardless of whether it is done in the context of operating his LLC's business. Similarly, an LLC owner who acts recklessly or negligently, such as being at fault in an auto accident while driving on company business, is liable for the property and personal injuries resulting from the accident. Any LLC owner who personally guarantees an LLC debt, such as a bank loan, will be personally liable to repay the debt if the LLC defaults on its payment.
Scenario 5:
Think Incorporating Will Protect Your Personal Assets? Not in These Cases.
Here are some of the situations where you will be personally liable for what happens in your corporation or LLC:
5. Your actions injure someone. If you provide a service to a customer (you’re a doctor, driver, consultant, tattoo artist, lawyer or accountant), you can be held personally liable for any claims of malpractice or negligence. For this reason, it’s critical to take out a robust professional-liability insurance policy to protect against malpractice or negligence claims. If your business has a general liability policy, be sure to check if it will protect you against these types of claims, as most don’t cover them.
