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In 2015 my business associate and I decided to open a second…

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In 2015 my business associate...
In 2015 my business associate and I decided to open a second business ( S-Corp). It was not linked to the first business except for the fact that to Correspond I would use the first business email to send messages. We rented an office suite and tried to open there but we ran into some financial issues. We were there for 5 mos and broke the lease. Now the leasing company is trying to garnish our wages from our first business (SCorp) when we did not respond. They are trying to sue our first company for not garnishing our check every week. But we are not paid employees so how can we garnish pay checks when we don't get paid. I need to send an answer to the court. (Fyi they are two separate businesses they have two separate names and two separate Board)
Submitted: 7 months ago.Category: Business Law
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11/30/2017
Business Lawyer: Legal Eagle, Lawyer replied 7 months ago
Legal Eagle
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Category: Business Law
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Hello! I am a licensed attorney, admitted to practice in state and federal court. I have a nearly 100% satisfaction rating (click here for more info) so all that means is that you can count on me to help today. Because I want to provide you with the most accurate answer possible, do you mind if I take a moment to review your question?

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Business Lawyer: Legal Eagle, Lawyer replied 7 months ago

Thanks so much for your patience on this. So, if you were sued personally and the leasing company was successful with their judgment, then the leasing company could request that your employer garnish your wages; however, if the employer (your first business) does not have any wages to garnish, then it is not possible for them to do such a thing. If you are the owners of the first business, then the only recourse for the leasing company is to try to get a lien on that business's profits or a lien against any property that you have such as your home, cars, etc. Thus, you may want to explain that you are not employees who earn a wage; rather you are simply owners of this business and do not receive a typical paycheck like a W-2 employee.

What other questions did you have for me today?

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