How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask RGMacEsq Your Own Question
RGMacEsq, Attorney
Category: Business Law
Satisfied Customers: 16339
Experience:  Licensed Texas General Practice Attorney
Type Your Business Law Question Here...
RGMacEsq is online now
A new question is answered every 9 seconds

I received a notice of garnishment against me, can my s-corporation

This answer was rated:

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!

RGMacEsq and 2 other Business Law Specialists are ready to help you

Related Business Law Questions