Legal Question in Business Law in California

s corporation liability

if my s corporation is sued am i personally liable


Asked on 1/15/09, 7:48 pm

3 Answers from Attorneys

OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: s corporation liability

If you did not personally gurantee contracts and kept your corporate identity with required minutes of corporate decisions, then you should not be liable. Contact me directly.

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Answered on 1/16/09, 11:21 am
Terry A. Nelson Nelson & Lawless

Re: s corporation liability

Depends on the facts, the allegations in the complaint, and what they can prove. Get an attorney to defend you unless you know how to effective practice law in court. Feel free to contact me if serious about doing so.

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Answered on 1/16/09, 2:41 pm
Thomas W. Newton Tims & Newton

Re: s corporation liability

Rather than say, "It depends...", let me put it this way: a lot more information is required; e.g.:

1. Has your corporation complied with corporate governance rules?

2. Is your corporation in good standing?

3. If the dispute relates to a contractual matter, did you give a personal guarantee for the corporation's obligations?

4. Are you simply a shareholder, or are you also an officer and director of the corporation?

5. If an officer and director, and the dispute relates to a tort claim, did you personally participate in corporate actions which form the basis for the tort claim?

These are but a few of the many questions counsel must ask before being able to give even a general answer. I wish I could give a more comprehensive answer, but there's not enough info to do so. May I suggest that you rework your question with a thought to the issues mentioned above, and then resubmit? I'll keep an eye out for your subsequent question.

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Answered on 1/15/09, 10:35 pm


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