Corporation Shareholder Liability?
My client have a S-Corp and he is the ONLY shareholder on this corporation. There is an outstanding loan that he can not repay and he is planning to disolve the corp. Can the edge put a judgement or lien to his personal asset. Someone told me if He is the merely shareholder next dune can do that. Is it true?
Answers:
There are a little factor. Because he is a sole holder of stock within a S-Corp, the corporation may not own qualified for the loan on its own merits. various times lenders will enjoy them sign a personal guarantee.
If your client signed anything that used his personal credit, assets or guarantees, they can come after him. Also if your client used any of the money from the loan for personal purposes, or in any other track comprimised the veil of the corporation.
Otherwise a copration and individual are "different people".
Assuming he have done everything right, no, they cannot, but the law alter between states.
In my state, a shareholder is not liable for corporate liability.
However, he is also the chairnman of the board, and the president of the corporation.
If he get the loan, and signed it as "John Doe, President, XYZ Corporation", afterwards that medium it is a corporate debt ,and not a personal one. He also wants a resolution of the board of directors authorizing the loan.
If he singed it freshly as "John Doe", consequently he assumed personal liability for the loan.
Many bank will try to bring the soul to assume personal liability when they furnish a loan, if he signed such a form, he is probably screwed.
He is liable for his personal movements, which be not within the interests of the corporation.
Also, no guard can put a judgement on anything, explicitly for a court to do.
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Answers:
There are a little factor. Because he is a sole holder of stock within a S-Corp, the corporation may not own qualified for the loan on its own merits. various times lenders will enjoy them sign a personal guarantee.
If your client signed anything that used his personal credit, assets or guarantees, they can come after him. Also if your client used any of the money from the loan for personal purposes, or in any other track comprimised the veil of the corporation.
Otherwise a copration and individual are "different people".
Assuming he have done everything right, no, they cannot, but the law alter between states.
In my state, a shareholder is not liable for corporate liability.
However, he is also the chairnman of the board, and the president of the corporation.
If he get the loan, and signed it as "John Doe, President, XYZ Corporation", afterwards that medium it is a corporate debt ,and not a personal one. He also wants a resolution of the board of directors authorizing the loan.
If he singed it freshly as "John Doe", consequently he assumed personal liability for the loan.
Many bank will try to bring the soul to assume personal liability when they furnish a loan, if he signed such a form, he is probably screwed.
He is liable for his personal movements, which be not within the interests of the corporation.
Also, no guard can put a judgement on anything, explicitly for a court to do.