If I had a small corporation for 5years and it went out business, am I personally responsibleforany bills?
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If I had a small corporation for 5years and it went out business, am I personally responsibleforany bills?
Went out of business 1 year ago. I have come creditors asking me for payment.
Asked on July 2, 2011 under Business Law, New York
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Generally speaking, if you set up a corporation under the laws in the state of New York and you did not personally guarantee any contracts made on behalf of the corporation for amy of the creditors then no, the creditors can not come after you personally. They would have to sue you and try and "pierce" the corporate veil as they say in order to collect a personal judgement against you. I would have an attorney take a look at your corporate papers and any contracts you signed just to be sure that you are protected. The creditors would be limited to collect from the assets of the corporation. Also make sure you properly dissolve the corporation with the state.
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