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If the corp is trying to borrow money from a bank or other source, it may hurt you especially if personal guarantees are required. They almost always are for most closely held businesses. You should also find out if it will hurt the business' ability to get accepted for a business bank account, credit card processing account or business insurance depending on how much of the business the person will own.1 of 1 people found this helpful
More on the level of nuissance, the corp may have to withhold from wages, dividends, royalties or rents paid to the individual if a garnishment is in place.
Depending on what industry you are in, it might reflect poorly on the image of the business if it were to become known. If you sell boxes, probably no big deal. If you are business consultants, will people really trust you when one of the owners/leaders of the business might be perceived as unable to manage her own affairs?
Hi! I am not a professional on this matter but I do have some first hand experience on this subject. The responce you received, seemed to sum it up very well. HOW EVERE . There are two groups that can reach beyond the grave to get money from you. (The IRS & Customs) They make there own rules so to speak. It was good you caught this. Have this person contact IRS and make arrangements. It is a workable problem, if it isn't taken care of , one day you will have a ton of paper work to do because you didn't. sonnie1 of 1 people found this helpful
Your information has been invaluble. Thank you. You definitely have shaped my future partnership.
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I have liability question of which I've received several conflicting responses. I am starting a company under a C-Corp. One of my potential partners has a federal tax lien. Will her tax lien have any impact on our C-Corp if she becomes one of the officers and co-founders?