Legal Question in Business Law in New Jersey

Thank you for your LawGuru question. The short answer is, they can be. The answer is very fact sensitive and cannot be answered in a simple yes or no. It is in your best interest to get legal advice. I have experience with you particular question (as well as a wide variety of business law issues, obviously). Please feel free to contact me ASAP so that we may determine the answer your circumstance, explore your options and protect your legal rights. 973-921-0600.

Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer. For me to give you legal advice or opinion, you would need to hire me to be your lawyer, and then we would need to discuss this in detail and go over the documents.

With best wishes,

Barry F. Gartenberg, Esq.

Please visit my website!

It is generally true that the officers, directors, or shareholders of a corporation are not liable for the debts of the corporation. However all of these persons can have liability if the finances of the corporation are applied in such a way as to benefit them to the detriment of the creditors. Thus, if the officers pay themselves a bonus knowing that there is not enough money to pay the other bills, they may have to return that money. There are other occasions where there is liability and each situation stands on its own facts.

My firm handles matters of this type, however the efficiencies in this matter may be influcenced by your lawyer's location. If I can be of further help to you, call or email.

See also: http://info.corbettlaw.net/lawguru.htm

For taxes owed to the State of New Jersey, yes, you may be liable. You want to get some legal advice to get this taken care of.

Robert Davies, Attorney 201 820 3460

In New Jersey, officers of a corporation are usually held to be responsible persons for sales and use tax liability and for gross income tax withholding liability. In addition, the Internal Revenue Code, under section 6672 provides that responsible persons are liable for the trust fund portion of employment taxes.

In order to fight this matter you should engage a tax attorney right away.

I hope this helps!

Ron Cappuccio

www.taxesq.com