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BizIPEsq.
BizIPEsq., Attorney
Category: Business Law
Satisfied Customers: 996
Experience:  I am a business attorney. I represent individuals and companies with all business related matters.
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Does the law still protect a business that is incorporated the has suddenly closed its doo

Resolved Question:

Does the law still protect a business that is incorporated the has suddenly closed its door with no notice. The business still has services unrendered and has merchandise that was given to business for there services. Business owner refuses to answer calls and return messages. I know the laws of incorporation protects the owner but does it protect this behavior.
Submitted: 1 year ago.
Category: Business Law
Expert:  BizIPEsq. replied 1 year ago.

BizIPEsq. :

Hello, I will be assisting you

BizIPEsq. :

Generally unless the company has been dissolved the limited liability aspect of the company continues.

BizIPEsq. :

However the good news is that notwithstanding the limited liability of a company if you believe that the owner has defrauded you then you can initiate a personal law suit against the owner

BizIPEsq. :

it would be up to the business owner that defend such a claims

BizIPEsq. :

generally fraudulent activities might not be able to hide behind the corporate shield.

Customer:

So what procedures would I have to through to get my merchandise and others back. I psid for the service they took my money. Never completed my order and disappeared.

BizIPEsq. :

In addition, keep in mind that even if there is no fraud you may still pierce the corporate veil by proving that the business and the person are one and the same. Typically that is done if the owner co-mingled money with the business (e.g. the owner took money from the business for personal expenses and treated it as the owner's wallet) or if corporate formalities were not followed or if the business was not properly capitalized.

BizIPEsq. :

how much money is at stake?

Customer:

Not much. Its about 135 for the service and about 200 for the item taken. I know its not much but its the principle of it all. There are others out there too.

Customer:

Luckily I only paid not the full amount of services. It wss to be paid in full upon completion

BizIPEsq. :

You have four courses of actions: 1) file a complaint with your local consumer fraud department 2) file a complaint with the Better Business Bureau 3) if you used a credit card, dispute the charges, and 4) file a small claim against the company and the owner. The latter two options are very effective. The first two are for the principle of it all and to warn future consumers of this.

BizIPEsq. :

Filing a claim in small claims court is fairly easy, you do not need an attorney and the filing fee is low. You'll get your day in court and if you win you will get a real judgment that you can seek collection with

BizIPEsq. :

the key is to file against the business AND against the owner personally.

BizIPEsq. :

BTW, if you used a credit card you can do both a dispute and a small claims court. The two are not mutually exclusive.

Customer:

No I paid cash for the services. Oh I did find out the license expired in december and I last heard from the business in feb when I was trying to find out what taking to long. Even they still retain incorporation status but no license, they are still protected under law?

Customer:

But I still kept track of all my paperwork reciepts on this matter.

BizIPEsq. :

the lack of a license is separate and apart from incorporation. Not withstanding the incorporated entity, you should pursue the matter in small claims court. All you have to loose is a small filing fee and an evening in court

BizIPEsq. :

as noted because you can claim fraud you should sue the owner individually in addition to naming the company as a party to the law suit

BizIPEsq. :

in conclusion, though the company may ordinarily protect the owners as against law suit the fraudulent actions of the owner may pierce such protection. I encourage you to seek redress in small claims court!

BizIPEsq. :

Thank you for allowing me to assist you

Customer:

Thank you that was a big help to me. I will try that. Thanks.

BizIPEsq. :

Please rate my service. Without your rating I do not get compensated for my work

BizIPEsq., Attorney
Category: Business Law
Satisfied Customers: 996
Experience: I am a business attorney. I represent individuals and companies with all business related matters.
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