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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Business Law
Satisfied Customers: 17515
Experience:  B.A.; M.B.A.; J.D.
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If you currently have pending wage claims against your

Customer Question

If you currently have pending wage claims against your partnership, will incorporating your business free you personally from that liability and place the liability on the corporation; or are you still personally liable because the claim was filed before you incorporated? Or if one partner sold his share to the other partner, would that free the selling partner of all liability of the wage claim? IF so what would be the steps to take to get the selling partners name off of the wage claim?
Submitted: 9 months ago.
Category: Business Law
Expert:  Phillips Esq. replied 9 months ago.

If you currently have pending wage claims against your partnership, will incorporating your business free you personally from that liability and place the liability on the corporation;

Response 1: No.

or are you still personally liable because the claim was filed before you incorporated?

Response 2: Yes.

Or if one partner sold his share to the other partner, would that free the selling partner of all liability of the wage claim? IF so what would be the steps to take to get the selling partners name off of the wage claim?

Response 3: No. The partner is still legally liable for the claim just like you would still be personally liable even after you incorporate. However, pursuant to the Purchase and Sale Agreement, the buying partner would then pay off the selling partner's claim if the decision is reached against the partnership.

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