QUESTION
Can the owner of a fictitious corporation be sued if corporation administratively dissolved and owner creates new corporation?
Asked on Mar 03rd, 2014 on Bankruptcy - Michigan
3 ANSWERS
Yes, an owner of a corporation can be sued personally. This is called "piercing the corporate veil". This is easiest to do when the individual has not kept distance between personal affairs and those of the corporation, co-mingling funds, for example.
Answered on Mar 05th, 2014 at 10:45 PM
Debt Collection Attorney serving Chicago, IL
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Edelman, Combs, Latturner & Goodwin, LLC
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It is unclear what you mean by "fictitious corporation." If you charter a corporation with the Secretary of State of Illinois and continue business in its name after its corporate status lapses for nonpayment of franchise taxes, you (and anyone else conducting the business) incur personal liability. Reinstatement of the corporation does not erase the personal liability for the period before reinstatement. Chartering a new entity would have the same (lack of) effect: it protects the individuals only for the time after its charter is issued.
Answered on Mar 05th, 2014 at 10:45 PM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
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Perhaps, need details. A corporation is a legal entity and if it is not properly maintained and honored it is possible to go through it to its owner.
Answered on Mar 05th, 2014 at 10:45 PM