Question
Tom owns his own fast-food business, Tom's Burgers LLC. Tom runs his finances for the business a bit informally, often paying personal debts from his
Tom owns his own fast-food business, Tom's Burgers LLC. Tom runs his finances for the business a bit informally, often paying personal debts from his LLC business account. Tammy supplies various types of food products to Tom's business on the business account. Tom is several months behind in payment to Tammy. Tammy is aware that Tom is not careful about his business finances and personal finances and that Tom mixes the two all the time. After Tom's credit owed to Tammy reaches $50,000, Tammy sues the LLC and Tom personally for the money. Tom says that he is not personally liable because the contract is only with the LLC and not him personally. Is Tom personally liable for the debt to Tammy? Why or why not?
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