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What else can I help you with?
Can an LLC claim bankruptcy if it owes state taxes?
Any corporation can file for bankruptcy, whether or not it owes taxes. If the corporation is to be liquidated, any taxes it owes are the first priority to be paid, before the debts owed to others.
Characteristics of a corporation?
Limited LiabilityStockholders, who are owners of the corporation, are not liable for its debts or acts. The premise of separate legal entity means that the no one represents or acts on behalf of the company as it represents itself. In instances where a corporation is being wound up, the shareholders are only liable up to the unpaid amounts of their shares.
In a corporation who assumes all liability?
In a corporation, the entity itself assumes liability, meaning that the corporation is treated as a separate legal entity from its owners (shareholders). This limited liability protects shareholders from being personally responsible for the corporation's debts and obligations beyond their investment in shares. However, in certain circumstances, such as fraud or illegal activities, courts may "pierce the corporate veil" and hold shareholders personally liable.
In case of transfer of a business who is liable to pay service tax?
This should and would be defined in the agreement to purchase the business and also could be based on the type of sale. Say you purchase a corporation by simply purchasing all the shares of the corporation from the previous owners. In this case you would have also purchased all the receivables and debts of the business. I was considering purchasing a corporation years ago but due to the financial situation of the business we proposed doing an asset buyout. In this case we would have purchased the assets of the company including the name, patents, and receivables of the company but not the shares, debts, and assets that were pledged as security.
How do you find out debts you owe?
cpassarella debts
What statement about corporations is not true?
their shareholders are responsible for the corporation's actions and debts Their shareholders are responsible for the corporation's actions and debts Their shareholders are responsible for the corporation's actions and debts kking kkilla Their shareholders are responsible for the corporation's actions and debts Their shareholders are responsible for the corporation's actions and debts Their shareholders are responsible for the corporation's actions and debts
As a guarantor of a corporation can you be sued for the debts that they did not satisfy?
Of course. That's why a person becomes a guarantor -- to satisfy the corporation's debts if the corporation is unable to do so.
What is limited liability?
shareholders are not responsible for the debts of the corporation.
When a business owner dies who is responsible for the debt?
If it is a sole proprietorship, then the estate will have to pay the debts. If it is a corporation, and the "owner" held all of the stock, then the corporation will have to pay all the debts.
What is it called when Shareholders do not have to pay the debts of the corporation?
limited liability
Who is responsible for a corporation debts but how much of it?
In a corporation, the shareholders are generally not personally responsible for the corporation's debts; their liability is typically limited to the amount they invested in shares. This means that if the corporation faces financial difficulties or bankruptcy, shareholders can lose their investment but are not liable for the corporation's debts beyond that. However, directors and officers may face personal liability if they engage in wrongful acts, such as fraud or negligence, that affect the company’s financial obligations.
If a corporation fails where does the money come from to pay its debts?
All of a corporation's assets may be sold to satisfy debts, but this may not be sufficient to pay all claims and liabilities when a business becomes insolvent.
Who faces limited liability for the firm's debts in a corporation?
indiviual stockholders
What term means stockholders are not responsible for debts of the corporation?
limited liability
Which statement about corporations is not true?
Their shareholders are responsible for the corporation's actions and debts.
What is the advantage of a corporation?
A corporation has limited liability protection, and are typically not personally responsible for business debts. A corporation can live forever, even if an owner dies or sells interest, the corporation can still exist.
A business owned by stockholders who share profits but are not personally responsible for debts?
Corporation :)
