Beau Starcevic: You find where the corporation has its "registered agent" in the state where the incident happened, and you have a process server present the papers for the lawsuit there. If you run a business as a sole proprietor or are a partner in a partnership you (and every partner in a partnership) are 100% responsible for all of its debts. They are liable to lose their entire investment and will personally be liable for any debts the business has even if it folds.If you incorporate and run a business as a corporation, all you are liable for is the money you put in, you are not liable for its debts. Neither is anyone else who owns stock in the corporation. If it folds you owe nothing.The owners and managers of the corporation are separate from the corporation and not responsible to third parties for its debts unless they have provided them with a personal guarantee. If it folds, they owe nothing.The equivalent to stockholders in a corporation are the members of! an LLC. They are also not responsible for the LLC's debts. All they can lose is their investment, no more. If it folds, they owe nothing....Show more
David Kuper: A corporation is a separate legal entity.....that is the biggest point to incorporation. Shareholders/Owners are not held personally liable for the actions of ANY corporation. That is Business Law 101.
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