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CalAttorney2, Attorney
Category: Business Law
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Experience:  I am a businesses law attorney, with experience advising and representing owners and investors.
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Can I dissolution my 2 florida corporations with debt the corporation

Customer Question

can I dissolution my 2 florida corporations with debt the corporation has. and what is the benefit in doing this?
Submitted: 2 years ago.
Category: Business Law
Expert:  CalAttorney2 replied 2 years ago.
Please understand, the information here is general in nature, and I would strongly advise you to seek local counsel's specific advice prior to taking this course of action as there are risks to this course of action.As a general matter, yes, you can wind down or dissolve your limited liability companies or corporations, liquidating all assets they may have and paying off all debts to the extent there are assets available. As long as you have not signed a personal guarantee for any of these debts, you can then "walk away" from the debt with no further threat of collection.There is such a thing as "piercing the corporate veil" where creditors can sue shareholders of a corporation for corporate debt, but to do this they must show that the shareholders were engaged in some form of fraud (the standard is a little wider than that, but for our purposes, I will leave it that there must be some sort of wrongdoing to allow a creditor to pursue a shareholder - but again, this is why I would recommend speaking to a lawyer prior to dissolving a corporation with outstanding debt).