Legal Question in Business Law in Florida
I own a S-corp mfg. company with a business partener in South Florida. We incorporated in June 2005. In Sept 2007 we were issued a Stop Work Order by the State of Florida for failure to have worker's comp. and assessed a penaltiy of approx. 30.000.00. We paid 10% down and monthly payments until Sept. 2009, when we stopped making payments. Our business has dramatically declined in the past two years and both my partner and I have foreclosed on our homes and will file personal bankruptcy. On May 24 we were issued a new Stop Work Order by the State and told we can no longer conduct business until the remaining penality is paid if full (approx. 20,000.00). Unfortunately this is not a finanacial option. I tried to renegotiate with the state but they said no other alternatives our available. We also have not filed taxes since 2006, as we owe our bookeeper/accountant 2000.00 - this is our only other corporate debt. The Stop Work Order is against our company and not against our personal names....we want to keep paying and try to stay in business as we have a good reputation with our clients and are not involved in any business lawsuits. Can this debt be placed in bankruptcy personally? We were told that we also can no longer open another company until the debt is paid if full. My partner and I have worked together in this industry since 1995 and as business parteners since 2005. We have no employee injuries....we do high end woodwork - when the housing market declined so do our business. Any suggestions? We want to pay the State, complete our outstanding work so that our clients are satisfied, but we can no longer operate until the Order is rescinded. We don't know what to do.
Thank you.
1 Answer from Attorneys
An attorney will tell you to consult with a local business lawyer or bankruptcy lawyer. You may want to explore opening another business entity (LLC perhaps). A corporation is a separate legal entity and it's obligations (like the workers comp debt) would not ordinarily flow to you as shareholders. Again, consult with an attorney in your area for specific advice.
Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise
Franchise Attorney
Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise
Franchise Attorney
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