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IL S-corp personal liability

Asked about 3 years ago - Quincy, IL
Business Corporation Incorporation

I have a possibility to gain 10% ownership in an IL S-corp. If corporation goes bankrupt or gets into finacial trouble will I be liable for any part of its debt or other obligations. I would not have to sign any document such as loan guarantee and would not be an officer in the s-corp

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Reputation Level 13
Answered about 3 years ago. Sexual Harassment Attorney in Chicago, IL.
Unless money is co-mingled or there is fraud, you can only lose your investment in the corporation. If you co-sign documents personally guaranteeing than you would also be personally be liable.
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