Legal Question in Business Law in Michigan

going out of business

I am one of three partners of an S Corp in Michigan. We are having financial problems and are closing doors. What happens with the debt of the company? Is it split three ways? What about the expenses I've paid out of pocket? How can I get my partners to chip in? My partner is trying to get me to pay 1/3 of his attorney fees, the attorney actually

sent me a bill to my home. Am I liable for that? What about expenses he's paid out of his pocket. And my other partner has hired an attorney to personally sue me for mis-management as the President of the company.....he was a silent partner. Help.

Asked on 12/06/06, 10:36 am

2 Answers from Attorneys

Don Darnell Darnell & Lulgjuraj, P.C.
0 users found helpful
0 attorneys agreed

Re: going out of business

Regarding the debt of the company, it depends upon whether the three of you personally garuanteed any debt. If you did, you might be liable for said debt. If not, notwithstanding any inappropriate conduct of any principals, the creditors are left with only the company to sue. However, if your company is in construction, different rules apply, and some debts from suppliers and subs might stick to one or all of you. Regarding mismanagement, this is an uphill battle for your silient partner, but that doesn't mean that he won't sue you any way.

You should consult with an attorney as soon as possible, to avoid saying or doing the wrong things, which might hurt you later in litigation.

Read more
12/06/06, 10:56 am
Matthew Frank Frank & Frank, P.C.
0 users found helpful
0 attorneys agreed

Re: going out of business

You definetely should consult with an attorney as soon as possible. There could also be potential personal liability for taxes.

Read more
12/06/06, 11:44 am

Related Questions & Answers

More Business Law questions and answers in Michigan

Looking for something else?

Get Free Legal Advice

88333 active attorneys ready to answer your legal questions today.

Business Law Legal Forms

Browse and download our attorney-prepared and up-to-date legal forms from $4.99

Find a Legal Form

Featured Attorneys

Anthony RoachLaw Office of Anthony A. RoachChatsworth, CA
Timothy McCormickLibris Solutions - Dispute Resolution ServicesSan Francisco, CA
Michael E. HendricksonAttorney & Counsellor at LawAlexandria,
Find An Attorney

Are you an Attorney?

Earn additional revenue and grow your business. Join LawGuru Now