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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 1611
Experience:  Run my own successful business/contract law practice.
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I owned a small corporation selling used cars time. I got

Customer Question

I owned a small corporation selling used cars for a long time. I got audited in 2011 and it took the board of equalization over three years and finally they gave an amount way more than what i believed owed. I had to close my business a year later and when i went to close my sales licence the board of equalization audited me again. a second amount was requested. i don't have the money to give them. what is going to happen now? i haven't heard from them for months.
Submitted: 1 year ago.
Category: Business Law
Expert:  levr replied 1 year ago.

You mention that the business is organized as a small corporation - correct?
So - that corporation is a separate legal and taxing entity.
If the corporation closes its doors and may not pay its liabilities - including tax liabilities - that is a problem of that corporation - and it may file fro bankruptcy protection or could be simply dissolved.

Expert:  levr replied 1 year ago.

Whether you personally as an officer of the corporation could be held responsible - that is a separate issue.

Generally as a shareholder of the corporation your personal liability is limited by your shares - so the most you may loose is your shares.
As an officer responsible for corporate activity - you personally MAY be held responsible if the money were distributed instead of paying taxes. So that woudl be very important to verify how corporate money were used.
But if there were NO distributions - you personally may not be held responsible.