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Richard, Attorney
Category: Business Law
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Experience:  32 years of experience practicing law and a businessman.
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If I am a partner of a sub chapter s corporation in California

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If I am a partner of a sub chapter s corporation in California and that company is sued for an amount that it cannot pay and must file insolvency, am I, a partner liable personally for any amount that it was sued for? We do carry D&O insurance for directors liability only.

Good afternoon. Unless the amount owed is related to tax liability...such as withholding, etc. or you signed a personal guarantee of a particulare debt.. you would have no personal liability. That's the benefit of operating within a limited liability entity such as an S Corporation...only the assets of the entity are at risk.



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Please be aware that the information provided here is not legal advice. Rather it is simply general information. All states have intricacies in their laws and any information given is simply information only and specifically is not intended to be, nor does it constitute, legal advice. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

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