Can a collector take our business?
Date: Mon, 04/21/2008 - 15:34
I'm looking at opening a bank account for my partnership business with a friend of mine. The thing I fear is if a debt collector could come and take our business account or garnish parts of it.
We are looking at the best route for making our business of either LLC, Limited Liability Partnership or a General Partnership and also getting an EIN for use with it.
Could anyone offer any advice or information? Thanks a ton!
We are looking at the best route for making our business of either LLC, Limited Liability Partnership or a General Partnership and also getting an EIN for use with it.
Could anyone offer any advice or information? Thanks a ton!
As a sole proprietorship or (general) parntership, the company's
As a sole proprietorship or (general) parntership, the company's assets would be considered your personal assets, and so they could get attached to the judgment.
I'm pretty sure that a corporation can not be touched over your personal debts. I would tend to say LLCs and LLPs are protected too, but I really don't know.
However, if your company pays you anything (wages, dividends, etc) then that compensation could be garnished.
