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Liability to Outsiders

15 January, 2016 - 09:36

Members are not liable to third parties for contracts made by the firm or for torts committed in the scope of business (but of course a person is always liable for her own torts), regardless of the owner’s level of participation—unlike a limited partnership, where the general partner is liable. Third parties’ only recourse is as against the firm’s property. See Puleo v. Topel, (see Liability Issues in LLCs ), for an analysis of owner liability in an LLC.