Legal Question in Business Law in Maryland

Re: Personal bank accts. at risk if my Co. is inc.?

Your mother may need elder planning and you may need business planning. Contact me for either.

When you ask about attachment of personal liability to a corporate entity, generally such liability is limited to actions of those authorized to act for the corporation.

Although the potential is remote for any adverse effect upon a corporate entity, an analysis of affiliation between the elderly individual and the corporate entity would be needed. Where assets are clearly divided and authority to effect an action for the corporation similarly separate and distinct, there is little likelihood that any decision in handling the affairs of an elder relative would have an adverse effect upon a corporation. In most cases the issue is whether there is a personal guarantee that binds the corporation. The most obvious is medical costs occassioned with the care of an elderly relative.

A preferred method for banking for an elderly relative is through a power of attorney. Although many take a more expedient route of simply being added onto the account of the relative, there are other matters to consider.

Contact me should you require assistance. I can be reached at (410) 799-9002 or by return e-mail.