Corporate Law S Corp suit

[phyld]

I am half owner of an s corp. and we are being sued. Can they touch our personal assets?? We are an Insurane agency, in NC.

 

[Michael Wechsler]

Originally posted by phyld:
I am half owner of an s corp. and we are being sued. Can they touch our personal assets?? We are an Insurane agency, in NC.

Unless they can "pierce the corporate veil" my understanding is no. We are assuming that you didn't commingle the assets of the corporation with your assets or the like. Are you being sued personally or is it the corporation that is being sued and you are wondering whether you will be liable as a result of the corporation being sued?

 

[phyld]

Originally posted by phyld:
I am half owner of an s corp. and we are being sued. Can they touch our personal assets?? We are an Insurane agency, in NC.

 

[phyld]

re: your questions about the s corp

No, someone is trying to sue the business, for a policy that was written. My partner and I both have our own personal things and were concerned that if someone sues the Corporation that it could spread over into our personal assets. No, the claim is actually baseless, unfortunately a bad situation topped with now lies, and acusations.

 

[Michael Wechsler]

Assuming that they may sue the company, my understanding is as I said, that they would have to prove some extraordinary circumstances to pierce the protection of a corporation in order to reach your personal assets.