Question: A California LLC owes me money, but claims it is broke. One of the members of the California LLC signed an Operating Agreement in which he promised to contribute $50,000 to the LLC. The member never paid the money to the LLC. Can I collect my debt from the member, but you may have to sue the member and the LLC in the same lawsuit?
Answer: Yes. California law provides that a member who makes a promise in writing to make a capital contribution is liable to a creditor of the LLC if the member fails to contribute the money to the LLC. California Corporations Code Section 17704.03(c) states:
“A creditor of a limited liability company that extends credit or otherwise acts in reliance on an obligation described in subdivision (a) may enforce the obligation.”