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Recent Piercing the Corporate Veil questions

I JUST OPENED A NEW BUSINESS AND IT IS AN LLC. A COURT HAS

I JUST OPENED A NEW BUSINESS AND IT IS AN LLC. A COURT HAS ISSUED AN ORDER TO ***** CAN THE COURT ATTACH THE COMPANIES BANK ACCOUNT?JA: Can you tell me what state the LLC is registered in?Customer: MICHIGANJA: Has anything been filed or reported?Customer: THE COMPANY HAS BEEN FILED.JA: Anything else you want the lawyer to know before I connect you?Customer: THE SUIT IS AGAINST ME PERSONALY AND WAS GOING ON BEFORE BUSINESS WAS OPENED.

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226 satisfied customers
What is required to shutdown a Delaware C corp, State, Some

what is required to shutdown a Delaware C corpJA: Because laws vary based on location, what state are you in?Customer: Washington StateJA: Anything else you want the lawyer to know before I connect you?Customer: Some haave said you can just let it go dromant

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Ely

Counselor at Law

Juris Doctor

67,996 satisfied customers
Recently had an issue where all my identification cards were

Hello.Recently had an issue where all my identification cards were stolen (passport, green card) except State ID.So in turn we had to freeze a couple of bank accounts, as checks were also stolen.I have an online business where I empty out the PayPal bank account to my BUSINESS bank account at the end of each day. I cannot do this to my business bank account because it's frozen.However I have a personal bank account with another bank, this is not frozen.Am I able to move money across to that account. I understand that ideally business and personal should be kept totally separate, however is this a big no no, or am I able to do this without any worry about tax implications or confusion?Thanks

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Phillips Esq.

Attorney

Juris Doctor

20,692 satisfied customers
I have a pretty big mess i need some advice on. it concerns

I have a pretty big mess i need some advice on. it concerns S-corp being sued / judgement handed down in the next week or two. dissolution and bankruptcy seem to be my only options. so i have allot of questions concerning how my business has been operating and how a trustee will treat me. I need to pay out some back salary to employees, and i have some things like autos and credit cards that are not in the company name but the comany has been paying for and only used for company useJA: Because laws vary from place to place, can you tell me what state this is in?Customer: TNJA: Has anything been filed or reported?Customer: not yet im not sure what to do firstJA: Anything else you want the lawyer to know before I connect you?Customer: My situation:I own an S-corp with myself as sole owner 100% in business for 11 months.I pay myself salary of around 90,000 but I only currently collect 1900.00 a month plus a paid expense account for reimbursement of company expenses that I put on 2 personal credit cards used solely for the company expenditures. (Cards are in my name) My employees also use these same cards for company expenses. The cards get paid directly from the company accounts every two weeks or so to keep the balances low. Most of our expenses go on them.Also I have Leased a new auto 5 months ago, the lease is in my wife's name, but myself and my employees use it solely for business use, (she put it in her name because the company has no credit or buying power at that time) and the business pays for the lease on this car directly from the business account to the leasing company. Since the car is in my wife's name will a trustee in BR consider this as debt or make her payback what's been paid on the car? Same question on the credit cards we use that are in my name but used for company expenses?I employ 2 employees and pay them salary of 85,000 (employee 1 is my operations manager / OTR technician) and 55,000 to my AR/AP office manager. We have an employment contract that was put in place when I hired them, so this is documented. Some of the salary I pay them is differed until year end. Can I pay them out now and get them current before I dissolve or file for Bankruptcy? Will a BR trustee allow that so close to the filing?I'm currently about to have a judgment handed down for around a half million dollars to a competitor who has sued us and is about to win because we are going to withdraw from the lawsuit. This is because we cant afford to keep fighting and we will loose anyhow. Lost cause.The only assets our company owns is the name of the business, our website domain, and our client database, three laptops 350.00 each and a three desk phones 100 each, some tools of the trade $2000 and some inventory around 1500.00 value. Total assets I would say under 5000.00???We still have clients paying us, we have accounts that are 30-120 days out / past due. Approximately 60,000 owed to us currently.We currently have around 25,000 cash in bank now. Barring any payments or payroll or taxes getting paid.What do I need to do at this point to protect my “personal” assets and how can I collect my salary still owed to me? I know a bankruptcy trustee will look at any back pay being paid to me during the 12 months prior to BR, they can take it away and award it to the judgment is my understating. What is my best option here?Desperate, I'm loosing my business, my job, and no place to turn. It seems I can't touch the money in the business account as it would seem basically everything coming in through AR will go to the judgment or be awarded to them if I file for BR or not. Its my understating if I dissolve the company then the liability of the judgment gets shifted to me personally and any money paid to me in the last 12 months would be forfeited forcing me into personal bankruptcy? I own my home outright and I own my boat and two vehicles outright I also have two additional cars with bank notes. How do I protect this stuff? Is it to late?

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Law Educator, Esq.

Attorney At Law

Doctoral Degree

114,224 satisfied customers
I understand that it is difficult in the US to sue a foreign

I understand that it is difficult in the US to sue a foreign owned asset protection trust to the extent that it was set up properly and assets were transferred per IRS and other legal guidelines. Trust is one generally upheld as from a soveriegn nation recognized by the courts.Is it as difficult to sue an LLC, C or S-Corp (California or other state) that is 100% owned (or member is 100%) by the foreign trust? Is it essentially offered the same protections by US courts?

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Richard - Bizlaw

Juris Doctor

10,860 satisfied customers
If I use my name when naming a corporation, do I lose some

If I use my name when naming a corporation, do I lose some of the protections of the corporation? Does it make it easier to "pierce the veil" and come after me in a lawsuit?

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RGMacEsq

Doctoral Degree

24,022 satisfied customers
I have kind of a business arrangement / franchise potential

Hi... I have kind of a business arrangement / franchise potential question. Where I am the franchisor.I have a small chiropractic business I am expanding. I have a guy that is struggling in practice. He is a good chiropractor and great guy but just not business savvy and I have the opportunity to kind of partner up with him (bail him out so to speak) by helping him get his business going by converting it to a franchise location for me or partnering up with him in some way.Advantage to him is he can break even or make money quickly to support family, etc. using my model (well in theory). He is bleeding about 1k a month right now and has been at it 1.5 years with just a 3k month overhead so he aint exactly growing too quickly.Advantage to me is that I can add another location to my company fairly quickly/easily (be our 3rd) in an area I would love to have a location with a doc ready to go... so that is my drive to make this happen.So the question is this. If I move forward with this, I am struggling on ideas of how to arrange the 'deal' with him.Not sure I want to take over his lease for him (1.5 years remaining) because he could of course abandon ship. Could just add my name on to lease and take over his operations and hire and train him. That seems clean only because he is still on hook for lease but why do that if don't have to be on it is my struggle there.Next option I thought is have him sign on as franchisee and just add addendum for no Franchise Fee, No royalties, etc and maybe just defer it all along with paying back any money I spend to get this going (be about $15K initially most likely to get him up to speed and hit marketing hard for several months)I have come up with scenarios and typed them out but didnt want to attach here because feel like it will be too overwhelming to read my potentially terrible scenarios.So my question is... Can you give me some ideas on a way to employ or partner with a guy in a situation like this where it makes the most sense.Perhaps some partnership hybrid where he can't abandon ship if all is not going well. So maybe he stays on lease and we just have an agreement with him that we take over his finances of the office and hire him as 1099 for low wage plus percentage as turns profit.Or perhaps a modified franchise option as mentioned above with a loan to get him going and he starts implementing my systems. Starts paying an amount per month towards these things on a profit level reached.Anyway.. hope this is a reasonable question you can give me some insight on.While I will probably consult an attorney in my area I like checking with this service as well so I can get an affordable second opinion and maybe just ideas of creative fair ways to structure it but most importantly any pitfalls to watch out for that I would not see coming or know about.

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Ely

Counselor at Law

Juris Doctor

67,996 satisfied customers
Can you dissolve a corporation while it is being sued or do

Can you dissolve a corporation while it is being sued or do you have to wait for a judgement? There are no assets, it's a small business that provides a service, thus if a judgement is placed it cannot pay it and thus either file for bankruptcy or just dissolve it.

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LawTalk

Attorney at Law

Juris Doctor

35,884 satisfied customers
I have an unsecured business loan through Kabbage for my

I have an unsecured business loan through Kabbage for my business (LLC). Due to situations outside of our control I have fallen behind in repayment, but trying to work with them to repay. They have indicated that they will file a lien against my business and I'm nervous of the personal affects this will have against me and my personal property, car and home. My questions is can they come after my personal belongings? My wife and I jointly own our home and I don't want her to feel the affects of my business debt.JA: Can you tell me what state the LLC is registered in?Customer: South CarolinaJA: Has anything been officially filed? If so, what?Customer: Nothing yet. I have been working with Kabbage to establish a repayment plan, but thus far the amounts they have required are far above and beyond what my business is currently generating in revenue.JA: Anything else you want the lawyer to know before I connect you?Customer: Not that I can think of. Thank you.

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legalg

Juris Doctorate

16,112 satisfied customers
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