Legal Question in Business Law in California

Re: Becoming a signer on Business Checking of a California S Corporation

Based upon the facts you presented, the answer is NO.

You are an employee of a company. Regardless of the form of the company, as a general rule, you do not incur personal liability for company debts. In fact, the Labor Code makes it clear that the company must generally indemnify you for any debts you do incur on behalf of the company.

Moreover, it is unclear from your question exactly what liability you would be incurring for merely writing and signing a company check. Based upon your boss' analysis, the employees and check signers at every company would be exposed to personal liability merely for signing a company check. Makes no sense.

Caveat: This of course presumes that you had the authority to sign the check. If you did not, then presumably, you could become liable to your employer for wrongfully appropriating company funds. But almost certainly, you would not (based upon these facts) incur liability to third parties.

If he doesn't want to give you permission, then leave it at that. If he does, then get it in writing.

Good luck.

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