Tiffany is an esthetician, and she started an eyelash busine…
Tiffany is an esthetician, and she started an eyelash business and formed a limited liability company, Tee’s Beauty Bar, LLC, of which she is the sole member. She never has enough money to pay the debts for the LLC and has acquired numerous loans and business credit cards which she obtained in the name of the LLC based on a strategy she learned from an influencer and business coach on Instagram. When she did get enough money to pay her debts, she transferred the money to her personal account to avoid having to pay the debts owed to her creditors. Her creditors sued Tee’s Beauty Bar, LLC and they all obtained judgments against the LLC in the amount of $450K. Earlisha tells them they are just out of luck because the LLC has no money or assets. In this case, the creditors are likely out of luck and may not pierce the corporate veil because a member of an LLC enjoys limited liability.