Legal Question in Business Law in Illinois

Re: Suit against S Corp

It's not likely, but it's possible under certain circumstances. Courts are reluctant to pierce the corporate veil, but if certain facts can be shown that would prevent an injustice, it can happen. However, this is pretty rare. More facts need to be known about your situation to determine if you have exposure. Of course, if you aren't personally named as a defendant, then you are not a party to the suit and you can't be made to personally pay the debts of the company. I would recommend consulting with a knowledgable business attorney (whoever was used to incorporate would be a likely candidate) if only to give yourself some peace of mind.

Re: Suit against S Corp

If you did not follow the technical procedures that a corporation is supposed to follow, there is a possibility that you will have some liability, i. e., following the bylaws, having corporate meetings, keeping minutes, etc. You should see an attorney to review your conduct and determine possible liability.

Good luck