We recently made an entity change from an "Inc." to an "LLC" and transferred all ongoing construction work on projects to the new LLC. I am curious if the LLC has lien rights to work done by the parent/old company, or of the LLC only has lien rights to the portion of work it completed. Thank you!
An LLC and INC are seperate legal entities, similar to two people being two different people. Frequently if a business wants to preserve the rights of the transferred business, they may complete an Agreement and assignment of assumption, and send out notices of the assignment and name change. It always helps to protect yourself by having the client sign an agreement with the new business and acknowledging the name and business entity change.
Hi Brion,
Thank you for the inofmration. We did have all clients sign a letter of assignment for the ongoing projects. Considering that was done for all projects that the LLC took over, would that give us lien rights to the entire contract work if it became neccessary to file a lien on that project?
Thank you!