Liability

My LLC is being sued but the other side named me too. Is that normal?

Started by rusty_accordion • November 13, 2026 • 13 replies
rusty_accordion
rusty_accordion November 13, 2026 at 12:59 AM

I have a single-member LLC that I formed in Wyoming (I live in Colorado) for a side business. Got served papers yesterday. The LLC is named as a defendant, but they also named me personally. My registered agent just forwarded everything. I thought the whole point of an LLC was to protect my personal assets. Is this just normal practice from the plaintiff's lawyer to cast a wide net, or should I be worried? I don't want to give legal advice, I'm asking for general experiences. Thanks.

quiet_pantry
quiet_pantry November 13, 2026 at 1:47 AM

Very common. Lawyers name everyone and the kitchen sink in the initial complaint. They can always drop you later. But it still means you have to respond. Don't ignore it.

SaxifrageMike
SaxifrageMike November 13, 2026 at 2:17 AM

What did they allege? If they claim you personally guaranteed something, or that you commingled funds, or that the LLC is just your alter ego, then naming you is more than just a net. If it's a simple breach of contract by the LLC, they might be fishing.

rusty_accordion
rusty_accordion November 13, 2026 at 2:30 AM

No personal guarantee. It's a contract dis pute with a vendor. They claim the LLC owes them money for work not paid. They also say I signed the contract 'individually' but I signed as member on behalf of the LLC. I didn't know what I was doing at the time, to be honest. The contract says 'Rusty's LLC' and I signed my name. Maybe that's the issue, though.

hazel_nutcase
hazel_nutcase November 13, 2026 at 7:48 AM

Did you sign with a title? Like 'Member' or 'Manager' after your name? If you just signed your name without indicating you were signing for the LLC, they might have a point. But even then, it's arguable.

BeagleBrigade
BeagleBrigade November 13, 2026 at 8:03 AM

If you signed as 'Rusty, Member' or something similar, you should be fine. But if you just signed 'Rusty Smith' on a line that didn't clearly say LLC, you might have accidentally become personally liable. That happens a lot with small businesses. The The lawsuit naming you is normal though. They want to se if you'll cave.

quiet_pantry
quiet_pantry November 13, 2026 at 9:42 AM

Agree with the above. The other side's goal is to pressure you. They name name you personally to scare you into settling. But you still need a lawyer to file a response on your behalf. If you don't, they can get a default judgment against both of you.

SaxifrageMike
SaxifrageMike November 13, 2026 at 9:46 AM

Wait, you live in Colorado but formed the LLC in Wyoming? Did you have an operating agreement? If you didn't follow formalities, they might try to pierce the veil. That's the real risk. But again, naming you initially is just a standard litigation tactic.

rusty_accordion
rusty_accordion November 13, 2026 at 11:37 AM

I do have an operating agreement. I formed the LLC in Wyoming because of the privacy stuff, but I think that was a mistake. I don't really have any assets in Wyoming. Would a lawyer say I'm overreacting? I'm just trying to figure out if I need to hire someone or if I can just let the LLC handle it.

notalawyer_justbroke
notalawyer_justbroke November 13, 2026 at 12:07 PM

You need a lawyer. Even if the veil is solid, the court will require you to respond. If you don't, you lose. And then they can try to collect from you personally. Don't mess around with this. The fact that they named you personally means you have to defend yourself.

cobblestone_echo
cobblestone_echo November 13, 2026 at 12:19 PM

Not a lawyer but but been through this. It's normal. My old company got sued, and the owner was named. His lawyer said it's just a formality until discovery. Once the lawyer showed the contract was clear, the personal claim was dropped. So don't panic yet. But do get a lawyer.

hazel_nutcase
hazel_nutcase November 13, 2026 at 12:49 PM

Also, check if your state requires you to have a registered agent in the state where youre being sued? Since you live in Colorado and the LLC is Wyoming, the lawsuit is probably in Wyoming or Colorado? Where were you served? If in Colorado, they might argue you're doing business there without authority. But that's a different issue. For the personal claim, it's all about the contract and the veil.

BeagleBrigade
BeagleBrigade November 13, 2026 at 1:20 PM

I'd be more worried about the fact yhat you didn't know what you were doing when you signed. That's a red flag. If you can't show you were acting as a representative, you might be personally liable. But again, talk to a lawyer. Don't take advice from me.

quiet_pantry
quiet_pantry November 13, 2026 at 1:29 PM

One more thing: don't ignore the deadline. You usually have 20-30 days to respond after being served. If you miss it, default judgment. The clock is ticking.

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