Legal Question in Business Law in Ohio

Dissolving a S-Corporation

What are the legal responsibilities of my business partner to our business debt since she wants to leave our privae practice? We are a S-Corp and have been in business for one year. We have a business loan that was taken out for office construction and therapy supplies.


Asked on 3/31/04, 4:01 pm

1 Answer from Attorneys

Re: Dissolving a S-Corporation

Look on the debt to see if you both signed individually as well as corporately. She would have personal liability and would have to negotiate with you and the lender to have herself removed from the debt if she guaranteed it or signed personally. Whether she could "walk-away" from it depends on your corporate agreements and what she may have signed for personally. She doesn't get any assets until you have worked out an arrangement for handling the debt. You could continue as a single person S-Corp. I would contact a business attorney to help you sort through the issues.

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Answered on 4/01/04, 9:09 am


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