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Print shop owner, have a customer not paying, billed in his name Joe Doe for work done for his corporation X. is he responsible

Alsip, IL |

the bills were paid for by the corp. but do we have legal recourse to him personally because he accepted past bills in his name and paid them?

Attorney Answers 2

Posted

Potentially, yes. You can go after him individually if he's not observing corporate formalities. But you wouldn't necessarily want to -- his corporation probably has more money.

I'd consider a suit for the amount owed.

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This answer is intended as informational only, and does not constitute legal advice or form an attorney-client relationship between us.

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3 comments

Asker

Posted

I believe he might dissolve the corp, that why the personal angle

Chen Kasher

Chen Kasher

Posted

Right, save the account in which he uses his name; he is not observing corporate formalities and you may be able to ask the court to pierce the corporate veil and hold him personally liable for the amount owed by his corporation.

Asker

Posted

Thanks for your advice

Posted

A collection attempt by a lawyer may prove to be a cost effective approach.

Louis T. Wierenga Assisting in mitigating your business and tax risks. www.LTWLAW.com E Ltw@LtwLaw.com Twitter @LTWLAW The information provided is for general purposes only and should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

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3 comments

Asker

Posted

what about small claims? good enough case against?

Louis Theodore Wierenga

Louis Theodore Wierenga

Posted

Don't know enough about the facts.

Asker

Posted

thanks for your comments, we'll see if he responds, he was a customer from a previous business, when we started again doing work for him we billed in his name, then he took over the company and formed a corp. but we just kept billing in his name and he never asked to change it. Now he quit that business and we're left with about $5000 in unpaid bills. So the question I guess is, all the invoices billed to his name and not the corp. even though the work was for that corp., is he personally responsible ? Thanks