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RGMacEsq, Attorney
Category: Business Law
Satisfied Customers: 15620
Experience:  Licensed Texas General Practice Attorney
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I received a notice of garnishment against me, can my s-corporation

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I received a notice of garnishment against me, can my s-corporation funds be siezed even though the account is setup under the corporation EIN number?

RGMacEsq :

Thank you for using JustAnswer. I am researching your issue and will respond shortly.

RGMacEsq :

If the judgment was only against you, and not the S Corp, then the funds of the S corp can't be seized (at least not initially). Any wages, or stockholder dividends, paid to you can be garnished, but only at the time of payment. If you are not drawing a wage or dividend, the S Corp's accounts cannot be touched unless the judgment is against the S Corp.

RGMacEsq :

Now it's possible that the creditor could try to go after the funds of the S Corp under an "alter ego" theory, alleging that you and the company are essentially the same. But assuming that you've kept good records, books, kept funds separate, etc... then this would be almost impossible to succeed.

RGMacEsq :

Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, XXXXX XXXXX luck to you!

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