Newbie LLC Snag

[Elizabeth Einecke]

Hello All. A few years back, I attended a seminar and jumped into doing a few fix and flips. Long story short, I opened a Ca. LLC under which I purchased and sold one of the properties. At the time, $4K was left in escrow to pay the contractor for the sewer lateral after the sale. Fast forward to today. I was recently notified that $4500 is sitting in escrow and was never claimed by the contractor who performed the sewer lateral back in 2008. In fact, they are no longer in business. The money was refunded to me in the name of the LLC. Problem is, I let the LLC lapse, never paying the taxes. I had no idea what I was doing when I opened it and really still don't. I just know that I have $4500 that belongs to the LLC which is me. I have no idea what I can do to get this money. Can anyone offer suggestions? Obviously, it was newbie mistake to open something I didn't understand. Thanks in advance for any help you can give.

[Marcus Curtis]

Several years back I closed doors to a failed business I started. I had outstanding payables of around $10,000 but had attempted to recover the funds many times with no success. Fast forward, just as in your case, I had closed the LLC and liquidated all assets.

I received a letter one day from a company that bought out one of the debtors with a balance of $8200 owed to me. Thankfully, all I needed to do is contact my Secretary of State to reinstate the LLC and DBA to setup a bank account.

My bankers worked with me in opening an account and closing it out as soon as I could cash the check. In short, just go and open your LLC and cash that check!