Legal Question in Business Law in Florida
My business partner and I have gone our separate ways and closed the business. We were and S-Corp. We had a credit card in the business name. Are we personally responsible for the balance or does the fall under the "umbrella" of being incorporated?
2 Answers from Attorneys
Any attorney will say unless you personally guaranteed the credit card, a credit card under the corporation is a corporate debt only. Consult with a good business attorney in your area for specific advice.
Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise
Franchise Attorney
If someone personally guaranteed the card, then they are liable. Odds are they did, so you need to find this out. In the unlikely event that no one did, then only the corporation is liable.
Of course if there were corporate assets distributed to the owners, and the owners didn't pay off the debt, that could come back to the owners to the extent of the distribution.
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