Legal Question in Business Law in Nevada
Followup question of Personal suing for corporate debt
Followup question to: If someone owns a company that is Incorporated and is the President of that company, what happens to his debt for advertising if he sells to new owners? Isnt he liable?
My followup question is this:
Does his personal signature on behalf of the company on the advertising contract qualify as a ''personal guarantee'' to pay the debt?
1 Answer from Attorneys
Re: Followup question of Personal suing for corporate debt
No, the reason that you form a corporation is to prevent yourself from being liable for corporate debts. If he sells the corporation's stock, you may be out of luck with the new owner, unless you can show that the new owner received some benefit. ie, he got customers from your advertising.
As to the personal guarantee, someone needs to actually put their name on the document on behalf of the company. Only if you have language that says the signer agrees to pay if the corporation doesn't, that you have a personal guarantee.
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