Does an S corp protect owners/officers from suit if it is dissolved
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Does an S corp protect owners/officers from suit if it is dissolved
A remodeling corp I have in Missouri has a client that will likely never be
satisfied with the quality/workmanship of cabinet painting. Worst case scenario I
close the doors to avoid potentially large legal costs. Does the corporation
protect me from personal suit if I dissolve it?
Asked on August 2, 2016 under Business Law, Missouri
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
The corporation will protect you from debts or causes of action arising from being an owner or manager of the company--such as disatisfaction with a job the company did. And it will protect you against any such liability arising while the company was in existence, even if you later dissolve the company. It will not protect you against things you *personally* did wrong, such as if you stole someone's money or committed fraud while working, or personally damaged another's property. You can be sued for those things due to your personal involvment, not because of your role in or ownership over the company.
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