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Legalinfomd
Legalinfomd, Attorney
Category: Business Law
Satisfied Customers: 150
Experience:  Attorney with 24 years of experience in business law.
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I have a business which is internet based with heavy shipping

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I have a business which is internet based with heavy shipping involved, I recently ran into hard times and could not pay my freight bill with my freight broker in a timely manner, as a result they have retained an attorney and he is threatening me with a lawsuit to recover money owed...in addition, I am being charged full amount, not the discount that the afforded me when they solicited my business. My question is this...can they come after me personally or strictly my business.....also, I have no written agreement with them whatsoever....I had been using them for a couple of years but I was not able to pay my bills anymore since I had an employee rob me and I am having a tough time catching up...please advise...
Submitted: 1 year ago.
Category: Business Law
Expert:  Legalinfomd replied 1 year ago.

Legalinfomd :

Hello. I will respond to your question.

Customer:

ok

Legalinfomd :

Do you conduct business as a corporation or a limited liability company, or as a sole proprietor?

Customer:

i conduct business as a corporation but they sent the threatening email to my name and to "Dallas Equipment" which is not even the name of my business but the name in my email...(dallasequipment @yahoo) ...this company just solicited my over the phone...I think they fished for clients on ebay...where my ebay name (one of them) is Dallas Equipment.

Legalinfomd :

If you conduct business as a corporation, and never signed any contract with them personally, then they are only entitled to collect from the corporation. The liability is not personal.

Legalinfomd :

When you did pay them in the past, did you pay with a corporate check?

Customer:

yes...I paid them with a corporate check

Legalinfomd :

Excellent. That is evidence of the fact that they were conducting business with a corporation, and are deemed to have had knowledge of that.

Legalinfomd :

I suggest you write to the lawyer, on your corporate letterhead, and that you sign the letter only as "President" of the corporation. In the letter, explain that "ABC, Inc." (or whatever your corporate name is) disputes the accuracy of the charges, and that regardless of the amount of the charges, the corporation regrettably is unable to satisfy the debt.

Legalinfomd :

Leave it at that and see where it goes. If they sue you personally, you should be able to successfully defend and show that it is a corporate obligation only, and that you are not personally liable.

Legalinfomd :

I hope that this information has been helpful. Please be sure to leave a positive rating for my answer so that I will be compensated for my time. Thank you and good luck with your matter.

Customer:

Should I reply to the email or send a certified letter? Before this happened, I was actually going to open another corporation and start operating under that because everything was screwed up...my books, files etc...this started as a hobby and now turned into a full time job...would I get in trouble if I started fresh under another name?

Legalinfomd :

There is nothing wrong with forming a new corporation and starting fresh. The worst thing that can happen is a creditor of the old corporation could try to argue that the new corporation is a "successor" and therefore liable for the old corporation's debt. But you have nothing to lose.

Legalinfomd :

I suggest you do not reply by email. Use a formal letter with corporate letterhead so that there is no confusion that you are communicating individually. The letter need not be sent certified.

Legalinfomd :

Thank you again and best of luck.

Customer:

One more question, when you say sign as President...do I sign my name or actually sign "President"....oh...and also he has been calling me....am I able to speak with him or no?

Legalinfomd :

I suggest you not speak with him. Limit communications to writing.

Legalinfomd :

The way you sign on behalf of the corporation is:

Legalinfomd :

ABC, Inc.

Legalinfomd :

By:_____________________

Legalinfomd :

XXXXX XXXXX, President

Legalinfomd :

You type that, and sign your name on the line.

Customer:

Awesome....thanks so much for your time and advice....

Legalinfomd :

My pleasure.

Legalinfomd, Attorney
Category: Business Law
Satisfied Customers: 150
Experience: Attorney with 24 years of experience in business law.
Legalinfomd and 4 other Business Law Specialists are ready to help you
Customer: replied 1 year ago.

Hi,


This lawyer said he got my letter and that he is going to call on all the customers who received freight and that I committed a felony and that I could be arrested....he said under some Federal Regulations that the consignees(people who accepted freight) can be responsible for freight. If I can not pay this freight, am I committing a felony? Is he yanking my chain? Also, I told him some of the charges were in dispute and he won't send me copies of the invoices for my review.....I think I may owe about half of what he claims....

Customer: replied 9 months ago.

Hi…and thanks for your advice….I did everything you suggested….I even sent them a couple of payments trying to do the right thing..however, I received a certified letter from the company yesterday when I was not there to sign for it…it was address to me personally…should I go to the post office and see what it is all about ? Please advise...

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