I am a licensed GC in North Carolina and constructing high end residential homes as an S corp. I have had an on going wall leak problem on a residence for about 3 years and have worked diligently to resolve the issue to no avail. I simply cannot afford to do any further repairs. I may need to dissolve the business as this issue will probably come to a lawsuit. If I dissolve the company what are my personal liabilities?
1 Answer from Attorneys
I would think this might be beyond the scope of this forum. You need to consult with an attorney in your area. I would be careful about dissolving anything because you think you may be sued. If I was a Plaintiff's attorney and you were dissolving the corporation and getting rid of assets, I would go after those assets anyway. If the corporation does not have assets, there might not be a need to dissolve it yet. If you can be held personally liable will depend on a number of factors including the facts of the case, the causes of action the Plaintiff brings, whether they have any argument that they should be able to pierce the corporate veil, the contracts that were signed, etc. Again the best advice would be to consult with an attorney.