Does anyone have any experience in this - GoFuckYourself.com

theking · 09-10-2003, 02:42 AM

If you have an incorporated business/businesses and you declare the business to be bankrupt...what personal liability does one have...if any.

My brother thinks that there is little if any personal liability...in other words it does not effect your personal credit rating. He is thinking of starting two more businesses without having actually gotten the first one off the ground. He intends to verify with his accountant the liability aspect before he continues...in case the businesses go under.

Anyone with knowledge or experience in this area??

theking · 09-10-2003, 03:28 AM

Anyone???

com · 09-10-2003, 03:29 AM

Going with a Corp. does not tie any of your belongings to the company as far as I know.

PigBlimpin' · 09-10-2003, 03:31 AM

S-Corp

theking · 09-10-2003, 03:32 AM

Quote:

Originally posted by PigBlimpin'
S-Corp

Yes...and...????

theking · 09-10-2003, 04:04 AM

Input please??

theking · 09-10-2003, 04:58 AM

Come on...you east coast people should be getting up and around now?

bringer · 09-10-2003, 05:00 AM

im up, and i know... i just cant remember

theking · 09-10-2003, 05:38 AM

Quote:

Originally posted by bringer
im up, and i know... i just cant remember

Had your coffee...feel alert now...is the memory returning?

bringer · 09-10-2003, 05:40 AM

http://www.ss.ca.gov/business/filings.htm

hope that helps

bringer · 09-10-2003, 05:41 AM

that'll be $50 for my finders fee

theking · 09-10-2003, 05:48 AM

Quote:

Originally posted by bringer
that'll be $50 for my finders fee

Send the bill to my brother.

Well it sounds as if he is right and there may not be any personal liability...but as I stated he is going to verify this before he proceeds with opening two more businesses.

bringer · 09-10-2003, 05:50 AM

Quote:

Originally posted by theking

Send the bill to my brother.

Well it sounds as if he is right and there may not be any personal liability...but as I stated he is going to verify this before he proceeds with opening two more businesses.

alright whats his billing address?

what business failed? maybe he should goto school before he tries again.

Sassyass · 09-10-2003, 05:51 AM

Are you a LTD or Inc what class?
There are different rules for different types of companies.
It's always safe to assume that if your company owes money and goes under, the owners will get hit with a bill.

theking · 09-10-2003, 05:56 AM

Quote:

Originally posted by bringer

alright whats his billing address?
what business failed? maybe he should goto school before he tries again.

He has not had a business fail...you did not read the initial post carefully. He just recently opened up a business and it seems to be doing OK but in my opinion it is really to early to tell...but he wants to immediately open two more in two different cities before someone else does it. He wants to incorporate to protect himself from personal libility just incase they fail. He has been to school...works at a college and instructs at a college and will have his Masters at the end of December.

theking · 09-10-2003, 05:58 AM

Quote:

Originally posted by Sassyass
Are you a LTD or Inc what class?
There are different rules for different types of companies.
It's always safe to assume that if your company owes money and goes under, the owners will get hit with a bill.

It is my brothers business not mine.

This is from the link that was provided by bringer.

"Corporation

A Corporation (Domestic - Articles of Incorporation/Foreign - Statement and Designation) generally is a legal entity which exists separately from its owners. While normally limiting the owners from personal liability, taxes are levied on the corporation as well as on the shareholders. The sale of stocks or bonds can generate additional capital and the longevity of the corporation can continue past the death of the owners. Legal Counsel should be consulted regarding the variety of options available for formulation."

bringer · 09-10-2003, 05:58 AM

Quote:

Originally posted by theking

He has not had a business fail...you did not read the initial post carefully. He just recently opened up a business and it seems to be doing OK but in my opinion it is really to early to tell...but he wants to immediately open two more in two different cities before someone else does it. He wants to incorporate to protect himself from personal libility just incase they fail. He has been to school...works at a college and instructs at a college and will have his Masters at the end of December.

EscortBiz · 09-10-2003, 06:00 AM

He can close shop and goodbye charly, the thing is he has to make sure that in all the contracts he signed he never was a co-signer for the company etc.

It wont effect his personal credit as in the 3 credit reporting agencies but anyone that will do a search on him on a court house level will see he had a business where he was the president or whatever that went bankrupt.

Many who have corporations just close shop without filing anything, just notify the IRS etc. that its over.

theking · 09-10-2003, 06:06 AM

Quote:

Originally posted by EscortBiz
He can close shop and goodbye charly, the thing is he has to make sure that in all the contracts he signed he never was a co-signer for the company etc.

It wont effect his personal credit as in the 3 credit reporting agencies but anyone that will do a search on him on a court house level will see he had a business where he was the president or whatever that went bankrupt.

Many who have corporations just close shop without filing anything, just notify the IRS etc. that its over.

Sounds good.

Sassyass · 09-10-2003, 06:06 AM

Quote:

Originally posted by theking

It is my brothers business not mine.

This is from the link that was provided by bringer.

"Corporation

A Corporation (Domestic - Articles of Incorporation/Foreign - Statement and Designation) generally is a legal entity which exists separately from its owners. While normally limiting the owners from personal liability, taxes are levied on the corporation as well as on the shareholders. The sale of stocks or bonds can generate additional capital and the longevity of the corporation can continue past the death of the owners. Legal Counsel should be consulted regarding the variety of options available for formulation."

Just keep in mind that the government has changed the laws on how corporations work. And it's in their best interest not to allow people to create a corporation, rape it, bankrupt it, and then run with the money without repercussions. (Not saying that is what your brother is doing)
I would guess that he is a S corp. Where he is incorporated will make a difference, but like I said, The 80?s taught the government that it needs to tighten the laws on how to exact it?s pound of flesh from fledgling business.

I was 10% owner in a corporation that was sold out from under me, and the IRS was on me for 4 years about paying back employee taxes. We were a S corp. out of Delaware.

"The Dog" · 09-10-2003, 06:08 AM

The real deal is this:
Most creditors today are asking for personal info on the corps officers before extending credit to "new" corps. (Less then 3 years in business) Our american express, merchant accounts,
and several others required my PERSONAL credit info in order to get credit for my corp.
This is because creditors have already been burned to the tune of millions, by people setting up corps, credit lines, then folding the corp and keeping the money stashed somewhere else.
Tell your brother he's just a little late, creditors are hip to the game by now.

Sassyass · 09-10-2003, 06:12 AM

Quote:

Originally posted by EscortBiz
He can close shop and goodbye charly, the thing is he has to make sure that in all the contracts he signed he never was a co-signer for the company etc.

It wont effect his personal credit as in the 3 credit reporting agencies but anyone that will do a search on him on a court house level will see he had a business where he was the president or whatever that went bankrupt.

Many who have corporations just close shop without filing anything, just notify the IRS etc. that its over.

An S corp. needs three officers.
President
Secretary
Treasurer.
This scenario would only work if he held interest, but no office (ie no control) which ties in to what I was saying before, if you own interest in a company and it goes under, you will be asked to pay.

EscortBiz · 09-10-2003, 06:16 AM

Quote:

Originally posted by Sassyass

An S corp. needs three officers.
President
Secretary
Treasurer.
This scenario would only work if he held interest, but no office (ie no control) which ties in to what I was saying before, if you own interest in a company and it goes under, you will be asked to pay.

he asked if it will effect his personal credit rating and the answer is that if he never co-signed they can ask you to pay from here to chicago they cant report you as the debtor.

Even if he hold an interest it doesnt matter if its a corp he is personally protected except from stuff like payroll tax etc.

theking · 09-10-2003, 06:16 AM

Quote:

Originally posted by Sassyass

Just keep in mind that the government has changed the laws on how corporations work. And it's in their best interest not to allow people to create a corporation, rape it, bankrupt it, and then run with the money without repercussions. (Not saying that is what your brother is doing)
I would guess that he is a S corp. Where he is incorporated will make a difference, but like I said, The 80?s taught the government that it needs to tighten the laws on how to exact it?s pound of flesh from fledgling business.

I was 10% owner in a corporation that was sold out from under me, and the IRS was on me for 4 years about paying back employee taxes. We were a S corp. out of Delaware.

I think he is going to be S Corp and it will be out of California.

EscortBiz · 09-10-2003, 06:19 AM

Quote:

Originally posted by Sassyass

Just keep in mind that the government has changed the laws on how corporations work. And it's in their best interest not to allow people to create a corporation, rape it, bankrupt it, and then run with the money without repercussions. (Not saying that is what your brother is doing)
I would guess that he is a S corp. Where he is incorporated will make a difference, but like I said, The 80?s taught the government that it needs to tighten the laws on how to exact it?s pound of flesh from fledgling business.

I was 10% owner in a corporation that was sold out from under me, and the IRS was on me for 4 years about paying back employee taxes. We were a S corp. out of Delaware.

If you review most of the new laws that where passed and the ones being talked about now you will see that most apply to public corporation or corporations and are mostly going to be enforced by the SEC.

Even as a private company that raises money under a 504 the same rules dont apply as if they where publicly traded.

Paul Markham · 09-10-2003, 06:22 AM

I would have thought that someone with your business experience and wealth would know better than ask members of GFY a question like this.

Don't you think it would be wiser to ask a lawyer or accountant experienced in these matters?

Unless of course between the pair of you, you're unable to raise $200.

theking · 09-10-2003, 06:25 AM

Quote:

Originally posted by theking

I think he is going to be S Corp and it will be out of California.

In other words he has opened the first business from his own finances and now wants to immediately open two more and he wants to incorporate so that he will not be personally liable if they fail and destroy his own personal credit rating.

Sassyass · 09-10-2003, 06:31 AM

Quote:

Originally posted by EscortBiz

If you review most of the new laws that where passed and the ones being talked about now you will see that most apply to public corporation or corporations and are mostly going to be enforced by the SEC.

Even as a private company that raises money under a 504 the same rules dont apply as if they where publicly traded.

I have not viewed any of the new laws as of late,
My experience is from the mid 90's.
I could be very off.
But I am pretty sure that the days of letting the "company' take the hit, are gone, and the owners of the company will end up paying one way or the other. Money owed will be collected. One way or the other, the people responsible for the "company" will be held accountable for the "companies" mistakes.
I quote the word company because it is treated as a separate entity.

Quote:

Originally posted by charly
I would have thought that someone with your business experience and wealth would know better than ask members of GFY a question like this.

Don't you think it would be wiser to ask a lawyer or accountant experienced in these matters?

Unless of course between the pair of you, you're unable to raise $200.

Just to qualify my possibly outdated knowledge, my mainstream company made over 2 million in 6 months.
I was the person who brought back the ?Cat in the Hat? hats in the mid 90?s.

theking · 09-10-2003, 06:31 AM

Quote:

Originally posted by charly
I would have thought that someone with your business experience and wealth would know better than ask members of GFY a question like this.

Don't you think it would be wiser to ask a lawyer or accountant experienced in these matters?

Unless of course between the pair of you, you're unable to raise $200.

Clueless as ever and will remain so. I do not have any connection with his business. It is his and his alone. If you would read and are capable of comprehending what you read you would have read that he is going to verify the personal liability aspect via his accountant before he proceeds to incorporate and open the other two businesses. It really is amazing how you are always clueless...it would seem that you would become embarrassed at some point and just keep your pie hole shut. I am asking on the board to garner first hand experience to satisfy my own curiosity.

EscortBiz · 09-10-2003, 06:34 AM

Quote:

Originally posted by Sassyass

I have not viewed any of the new laws as of late,
My experience is from the mid 90's.
I could be very off.
But I am pretty sure that the days of letting the "company' take the hit, are gone, and the owners of the company will end up paying one way or the other. Money owed will be collected. One way or the other, the people responsible for the "company" will be held accountable for the "companies" mistakes.
I quote the word company because it is treated as a separate entity.

I understand that you would hope its over but its not, laws are laws and the fact is if you didnt sign as a co-signer yes people can call to try to collect but they cannot report you to the 3 personal credit bureaus.

Your name will show up if they do a D&B or other places where they can file but not with the 3 credit reporting agencies.

theking · 09-10-2003, 06:40 AM

Quote:

Originally posted by EscortBiz

I understand that you would hope its over but its not, laws are laws and the fact is if you didnt sign as a co-signer yes people can call to try to collect but they cannot report you to the 3 personal credit bureaus.

Your name will show up if they do a D&B or other places where they can file but not with the 3 credit reporting agencies.

Clarify "co-signer" for me. He wants to get a loan to open the other two businesses...so how does he/the corporation get the loan without him signing for the loan. After all some one has to sign for the loan. Or are you saying that he personally cannot gaurantee the loan in the form of co-signing for the corporation...which in turn would make him personally liable for the loan if the coporation fails.

Sassyass · 09-10-2003, 06:45 AM

Quote:

Originally posted by EscortBiz

I understand that you would hope its over but its not, laws are laws and the fact is if you didnt sign as a co-signer yes people can call to try to collect but they cannot report you to the 3 personal credit bureaus.

Your name will show up if they do a D&B or other places where they can file but not with the 3 credit reporting agencies.

I think we are agreeing for the most part here.
Think of it this way,
If he busts ass, and makes it work, he won?t have to worry about Bankruptcy.
If it flops, and the IRS can connect him to it financially, he will be asked to pay.

KRL · 09-10-2003, 06:51 AM

Its pretty rare to find anyone that will extend serious amounts of credit to a small corporation without having key officers personally guarantee the money. Usually you can fuck over your wholesale suppliers and vendors, but the banks aren't so easy to get away from.

Most every future financing form he'll sign will have a declaration statement asking if he or any company he has owned has gone BK. If he lies he's fucked legally.

theking · 09-10-2003, 08:25 AM

Quote:

Originally posted by KRL
Its pretty rare to find anyone that will extend serious amounts of credit to a small corporation without having key officers personally guarantee the money. Usually you can fuck over your wholesale suppliers and vendors, but the banks aren't so easy to get away from.

Most every future financing form he'll sign will have a declaration statement asking if he or any company he has owned has gone BK. If he lies he's fucked legally.

He has never been personally bankrupt and has never had a business go bankrupt. It is my understanding from him that he already has financing lined up...but I am not sure of the source. If need be...and he decides to take the risk...he can finance it himself.

NBDesign · 09-10-2003, 08:27 AM

all you need is an LLC... you do not have to incorporate to protect your personal assetts.

09-10-2003, 02:42 AM	#1
theking Nice Kitty Industry Role: Join Date: Sep 2002 Location: The good old USA!!! Posts: 21,053	Does anyone have any experience in this If you have an incorporated business/businesses and you declare the business to be bankrupt...what personal liability does one have...if any. My brother thinks that there is little if any personal liability...in other words it does not effect your personal credit rating. He is thinking of starting two more businesses without having actually gotten the first one off the ground. He intends to verify with his accountant the liability aspect before he continues...in case the businesses go under. Anyone with knowledge or experience in this area?? __________________ When you're running down my country hoss...you're walking on the fighting side of me! FOR THE LYING LOWLIFE POSTING AS PATHFINDER...https://gfy.com/fucking-around-and-pr...athfinder.html

09-10-2003, 03:28 AM	#2
theking Nice Kitty Industry Role: Join Date: Sep 2002 Location: The good old USA!!! Posts: 21,053	Anyone??? __________________ When you're running down my country hoss...you're walking on the fighting side of me! FOR THE LYING LOWLIFE POSTING AS PATHFINDER...https://gfy.com/fucking-around-and-pr...athfinder.html

09-10-2003, 03:29 AM	#3
com Confirmed User Join Date: Aug 2003 Location: Portland, Oregon Posts: 4,541	Going with a Corp. does not tie any of your belongings to the company as far as I know. __________________ Real. Professional. Hosting. .:Expect Nothing Less:. 320-078-843 :: www.realprohosting.com :: [email protected]

09-10-2003, 03:31 AM	#4
PigBlimpin' Registered User Join Date: Sep 2003 Location: Spendin' da Cheese! Posts: 85	S-Corp __________________ Pig Blimpin'... spendin' cheeze.

09-10-2003, 04:04 AM	#6
theking Nice Kitty Industry Role: Join Date: Sep 2002 Location: The good old USA!!! Posts: 21,053	Input please?? __________________ When you're running down my country hoss...you're walking on the fighting side of me! FOR THE LYING LOWLIFE POSTING AS PATHFINDER...https://gfy.com/fucking-around-and-pr...athfinder.html

09-10-2003, 04:58 AM	#7
theking Nice Kitty Industry Role: Join Date: Sep 2002 Location: The good old USA!!! Posts: 21,053	Come on...you east coast people should be getting up and around now? __________________ When you're running down my country hoss...you're walking on the fighting side of me! FOR THE LYING LOWLIFE POSTING AS PATHFINDER...https://gfy.com/fucking-around-and-pr...athfinder.html

09-10-2003, 05:00 AM	#8
bringer i have man boobies Join Date: Jul 2003 Location: van down by the river Posts: 13,082	im up, and i know... i just cant remember __________________ 333-765-551

09-10-2003, 05:40 AM	#10
bringer i have man boobies Join Date: Jul 2003 Location: van down by the river Posts: 13,082	http://www.ss.ca.gov/business/filings.htm hope that helps __________________ 333-765-551

09-10-2003, 05:41 AM	#11
bringer i have man boobies Join Date: Jul 2003 Location: van down by the river Posts: 13,082	that'll be $50 for my finders fee __________________ 333-765-551

09-10-2003, 05:51 AM	#14
Sassyass Confirmed User Join Date: Dec 2002 Posts: 1,101	Are you a LTD or Inc what class? There are different rules for different types of companies. It's always safe to assume that if your company owes money and goes under, the owners will get hit with a bill.

09-10-2003, 06:00 AM	#18
EscortBiz Fuck Checks, CASH only! Join Date: May 2002 Location: New York City Posts: 19,422	He can close shop and goodbye charly, the thing is he has to make sure that in all the contracts he signed he never was a co-signer for the company etc. It wont effect his personal credit as in the 3 credit reporting agencies but anyone that will do a search on him on a court house level will see he had a business where he was the president or whatever that went bankrupt. Many who have corporations just close shop without filing anything, just notify the IRS etc. that its over. __________________ Spanking, Medical Fetish, Sleeping, Strap-on Anal Lesbians, Girls Fucking Guys, Handjob site REAL HOT, Shemales, Anal and Ass Licking sites 100% Real EXCLUSIVE with amazing retention, ccbill payouts, lots of content FREE FTP HOSTING Promote the largest and oldest member paid escort site, Converts 10 times better then any dating site, CCBill payouts ICQ# 158802076

09-10-2003, 06:08 AM	#21
"The Dog" Confirmed User Join Date: May 2003 Location: Los Angeles Posts: 130	The real deal is this: Most creditors today are asking for personal info on the corps officers before extending credit to "new" corps. (Less then 3 years in business) Our american express, merchant accounts, and several others required my PERSONAL credit info in order to get credit for my corp. This is because creditors have already been burned to the tune of millions, by people setting up corps, credit lines, then folding the corp and keeping the money stashed somewhere else. Tell your brother he's just a little late, creditors are hip to the game by now. __________________ "The Dog" www.promediagroup.us "Custom Content Experts" ICQ 213857754

09-10-2003, 06:22 AM	#26
Paul Markham Too old to care Industry Role: Join Date: Jun 2001 Location: On the sofa, watching TV or doing my jigsaws. Posts: 52,943	I would have thought that someone with your business experience and wealth would know better than ask members of GFY a question like this. Don't you think it would be wiser to ask a lawyer or accountant experienced in these matters? Unless of course between the pair of you, you're unable to raise $200. __________________ Blowout deal. 880 videos, 2,400 image sets, plus many RAW videos. $500. PM me for a deal. Skype Paulmarkham70

09-10-2003, 06:51 AM	#33
KRL Entrepreneur Join Date: Oct 2002 Location: USA Posts: 31,429	Its pretty rare to find anyone that will extend serious amounts of credit to a small corporation without having key officers personally guarantee the money. Usually you can fuck over your wholesale suppliers and vendors, but the banks aren't so easy to get away from. Most every future financing form he'll sign will have a declaration statement asking if he or any company he has owned has gone BK. If he lies he's fucked legally. __________________ If you would like to develop your domains, you can lease inexpensive foreign labor from the leaders in the field at iWebmasters.com TO LOWER YOUR COSTS AND INCREASE YOUR PRODUCTION! * * * * * * * * * * * * Domains Adult News KRL's Newsletter Biz Tips Just Listed Domains

09-10-2003, 08:27 AM	#35
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