Legal Question in Business Law in California

I am a shareholder in a corporation and the other shareholders want to take out a loan for the corporation. The loan company want my social security number and I was adivise since I was a shareholder of a corporation I shouldn't have to provide it. The corporation and property acts as collteral. Do I need to provide my SS# if,so why?


Asked on 4/04/13, 5:18 pm

2 Answers from Attorneys

Kelvin Green The Law Office of Kelvin Green

It seems that they want your SS# as part of a personal guarantee. Something does not seem right here because the directors arrange for business operations , not the shareholders unless they are the same because it is a small closely held one. The giving of your social security number may lead you down the path of piercing the corporate veil and subjecting you to personal liability.

Read more
Answered on 4/04/13, 6:21 pm
Anthony Roach Law Office of Anthony A. Roach

I agree with Mr. Green. You should not be providing your personal information unless your are guaranteeing the underlying obligation or are a coobligor.

Read more
Answered on 4/05/13, 8:22 am


Related Questions & Answers

More Business Law questions and answers in California