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Like there are so many issues in this post. Like the basic lack of understanding of corporate law is telling me you need to go to different counsel.
To start that’s completely false that a shareholder can’t be sued. The shareholder is not liable for the debts of the LLC. However, this does not exclude tortious conduct by both the shareholder and the LLC.
I can’t even do the rest of the analysis on the lack of understanding here.
You probably shouldn’t tell someone that a shareholder “never needs a lawyer” to sue on behalf of a corporation then.
As for whether the company is an LLC or a corp, OP admitted they are pretty unfamiliar with corporate law so it’s possible they’re just using imprecise language. Plenty of laypeople use the term shareholder when they technically mean member.