Ask YC: S-Corp debts on personal credit report?
A friend of mine has an S-Corp that's going under. A lawyer is saying that unpaid credit card debt the s-corp owes will appear on my friend's personal credit report, and be quite a severe blemish. Is this how it usually works?
2 comments
Not in my experience (don't ask). Unless he personally guaranteed the card, in which case, well, it's pretty obvious.
Part of the benefit of incorporation is the separation between personal and corporate liabilities. But, if you use a personal card for corporate stuff (even if you ONLY used it for corporate expenses) you are personally liable because it's YOUR card, not the companies.
Part of the benefit of incorporation is the separation between personal and corporate liabilities. But, if you use a personal card for corporate stuff (even if you ONLY used it for corporate expenses) you are personally liable because it's YOUR card, not the companies.
Is the card tied to the S-Corp's EIN or the S-Corp owner's SSN?