Comment by JumpCrisscross
2 days ago
> primary purpose of an LLC is to make it so that the owners (often the founders) cannot personally be held responsible for debts the company incurs
It’s more so investors who aren’t involved in day-to-day decision making can invest without worrying that the founders will create liability for them.
This. You can still go after management in certain circumstances
I said the owners can't be held liable, I meant the owners can't be held liable.
You can "in certain circumstances" (negligence, overt criminality...) go after the managers. You probably can't go after the managers for things like producing a business plan they could have plausibly believed was legal and causing the company to incur civil liability.
In the situation described in this article, probably both the owners and the managers (likely the same people!) get away without being held accountable, and the victims have no recompense because the company folds.