Say that I start selling a digital product while operating as a sole proprietorship. I later go through the process to form an LLC, and then continue to sell the product under the name of my LLC.

Does the LLC now assume all liability for past and future sales of the product? For example, say that John purchased my product while I was still selling as a sole proprietorship, but decides to sue me sometime after I form the LLC. Would I be personally liable, or would the LLC be liable?

1 Answer 1


Under most circumstance, you would continue to be liable for pre-LLC obligations. You can't escape existing liability by changing the form of your business.

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