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.

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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.

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

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