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S corp closing

by jhendriks, Performer

  • Created: June 19, 2009, 3:55 pm
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2 comments

Closing a business (s corp).

Nothing financed nthing owed (equipment and such).

If I were to shut down, is there a way to get out of my lease (no buyout clause).

If bankruptcy becomes my only option, does that affect me as an individual or just the company?

My concern is my family, I dont want the closing of our company o affect us on a personal level.

 

I apologize if this is too vague.

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mymboi | Window Shopper | 6/20/2009 - 10:14 am

It depends if they had you do a personal guarantee on the lease or any loans.  If you did that means that can come after you personally and your personal assets.  If not then you should be OK after the bankruptcy.

sbbarca | Contributor | 6/20/2009 - 6:56 pm

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It depends if they had you do a personal guarantee on the lease or any loans.  If you did that means that can come after you personally and your personal assets.  If not then you should be OK after the bankruptcy.
Sorry to hear about your problems. The bankruptcy should not affect you because it is a separate entity, although you may want to get a second opinion from a bankruptcy attorney. Now, if you had to personally sign any of those contracts on behalf of the corporation, then you may be on the hook for those particular contracts. It may be possible to get out of the lease by trying to work something out with the landlord or possibly finding someone to take over the space as per the lease. And don't forget that you have to dissolve the corporation once you're all done.
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