Legal Question in Business Law in Florida

S-Corp

Can the indivividual owners of an s-corporation be sued?


Asked on 6/08/07, 2:54 pm

2 Answers from Attorneys

Richard Georges Richard M. Georges, P.A.

Re: S-Corp

Of course they can. Anyone can be sued. The issue is whether the S corporation will provide insulation from liability, and that depends on the facts. If the corporation doesn't respect the coporate details, the corporate veil can be pierced and corporate liability can be transferred to the shareholders. If the shareholders are individually guilty of negligence, or if they sign personal guarantees of a debt, the insulation from corporate liability can become illusory. The specific fact situation should be discussed with an attorney to see how the law applies to you.

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Answered on 6/08/07, 3:02 pm
Johm Smith tom's

Re: S-Corp

Mr. George is correct; anyone can be sued for anything at any time. Whether the plaintiff can win is the real questions. An attorney needs to know more facts to know if the owners could be held liable for whatever gives rise to a claim or cause of action.

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Answered on 6/08/07, 4:12 pm


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