New case came out today reaffirming the fact that as to Washington LLCs that a creditor of the LLC has three years from the date of dissolution of the LLC within which to file suit against the LLC or the claims are forever barred.
In other words, after you let a Washington LLC lapse (usually for non-payment) that starts the three year statute of limitations on claims. For example, you sell a house out of a Washington LLC and then let the LLC lapse then the house purchaser has three years to bring suit against the LLC or the buyer’s claims are forever barred. This is an especially great tool considering that the standard written contract statute of limitation is six years. Thus, you shave off three years of potential contingent liability.
Mar. 13, 2014 – 31163-5 – William Houk, et ux v. Best Development & Construction Co., Inc. et al
http://www.courts.wa.gov/opinions/?fa=opinions.disp&filename=311635MAJ
Click to access 311635.opn.pdf