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Am I personally Liable?

Discussion in 'Business & Corporate Matters' started by Lvishn200, Oct 9, 2019.

  1. Lvishn200

    Lvishn200 Law Topic Starter New Member

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    Jurisdiction:
    California
    A friend and I started a c-corp in 2017 for which we filed taxes the following year (State and Fed income tax was paid in full). There were never any salaries paid or employees. We had some small success, but due to poor management and personality differences, we decided to stop doing business. We received a CA sales tax bill of which my partner paid a portion. The corporation has been sitting idle since then, there are no assets, nor is there evidence of the sale of any assets in the past.

    Are we personally Liable for the remainder of the sales tax that went unpaid? Can the state come after myself or my former partner in the form of liens/garnishments?

    Bonus question if anyone can answer: as an officer of this defunct Corp (with an unpaid state sales tax bill) prevent me from obtaining a CA real estate licence?

    Thank you in advance!
     
  2. army judge

    army judge Super Moderator

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    Probably, but you should speak to a licensed CA attorney or CPA.

    Probably, but you should speak to a licensed CA attorney or CPA.

    Maybe, but you should speak to a licensed CA attorney or CPA.
     
    Michael Wechsler likes this.
  3. Michael Wechsler

    Michael Wechsler Administrator Staff Member

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    Beware of the workings of tax collection. I highly doubt that it would be so easy to extinguish corporate debt by using the revenue and then closing down the company without paying tax. Seems like too easy a loophole to leave open. The longer you let this issue languish the longer the relevant taxing authority (federal and/or state and/or city) will have to impose penalties.
     
  4. adjusterjack

    adjusterjack Super Moderator

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    That a question for the state's real estate licensing department.
     

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