Corporations and Limited Liability Companies(LLCs)

Find out whether you can sue an LLC owner or if you should sue the LLC company itself.

Updated by , Attorney ● University of the Pacific McGeorge School of Law
Updated 5/17/2024

Corporations and limited liability companies (LLCs) are legal entities in the same way as a person. This status allows you to sue and collect a judgment against the business entity itself. In this article, you'll learn who to sue when you have a claim against an LLC.

Can You Sue an LLC Company or Corporation?

You may sue a corporation or LLC in your state if it does business there, even if its headquarters are in another state. Be sure to list the full name of the corporation or LLC when you file suit (John's Liquors, Inc., a Corporation, or John's Liquors, LLC).

The name on the door or the stationery might not be the organization's real name, as corporations and LLCs sometimes use fictitious names. To be sure, check with the city or county business license office where the corporation or LLC is headquartered.

Information is also usually available from either the secretary of state or the corporation commissioner's office for your state.

Learn more about naming a defendant in a lawsuit.

Can You Sue an LLC Owner or Corporation Owner?

In most cases, you won't sue those who own shares or an interest in a corporation or LLC. You also shouldn't sue the owners, officers, or managers of the corporation or LLC as individuals in the typical case.

The real people who own or operate the corporation or LLC aren't themselves legally liable to pay the corporation's or LLC's debts. This concept is called personal limited liability and is a big reason many people choose to incorporate or form an LLC in the first place.

However, an exception to this rule exists. You might want to sue an interest owner or officer if you have proof that they "pierced the corporate veil" by fraudulently mishandling company finances. And, of course, you can always sue anyone you have a personal claim against that is separate from their role in the corporation or LLC but that would be unrelated to the corporation or LLC.