Legal Question in Business Law in California

Re: Business Law

Bankruptcy for the corporation comes prominently to mind; you should take all your papers to two or three bankruptcy lawyers for an initial free consultation, and frankly discuss your ability to pay legal fees. Also be sure to discuss the "100% penalty" for undeposited trust fund taxes (money withheld from employees but not deposited).

Re: Business Law

I have no idea from reading your question why you are being sued, whether there is some reason why you might be held personally liable, whether there is a contract involved, whether you might have reason to countersue, or whether the judgment could be discharged in a bankruptcy. Best guess is they could well get a judgment against you personally and this would haunt you forever, or until you go bankrupt.

Re: Business Law

If they sue you personally, and you ignore the lawsuit, it doesn't matter that they didn't have the legal right to sue you personally. You give up the right to dispute that by ignoring the lawsuit. There are other concerns but I will not raise them in a public forum. You may contact me for a consultation.

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Re: Business Law

Because of the limitations of this forum and the information in the post, no attorney is going to be able to give you a concrete recommendation here. Because of the amount of money involved, however, you absolutely should consult with legal counsel. It may be a situation where you can just walk away, but then again... You can't afford not to get more personal advice than you're going to get via internet. A number of different strategies come to mind and there's no way of telling which is appropriate without a lot more information.

Re: Business Law

IF, IF, you've properly formed, organized, operated, managed and documented the decisions of the company, you should be able to withstand a legal attempt to pierce the corporate veil to get to the officers, directors and shareholders assets -- as long as you aren't being sued for your individual personal conduct. If named individually in the lawsuit, or if plaintiff seeks to collect a judgment against you personally, you'll have to hire counsel to defend you properly and effectively. Feel free to contact me if serious about doing so.