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Boise Idaho Business Guide: Protection

Yes. An Idaho C-Corporation owners/shareholders usually enjoy limited personal liability for many of their business transactions, but this protection can be diminished if not careful. When your business is formed as an Idaho C-Corporation, the required bylaws, minutes, meetings and solutions are a critical source of protection. These documents are top priority during a lawsuit and will protect your limited liability status.

C-Corporation owners can be held personally liable if:

  • Personally injures someone.
  • Personally guarantees a bank loan or a business debt.
  • Fails to deposit taxes withheld from employees’ wages.
  • intentionally engages in fraud, illegal, or recklessness that causes harm.
  • treats the C-Corporation as an extension of their personal affairs, rather than as a separate legal entity.
  • No functioning Bylaws to govern their behavior.

If owners/shareholders don’t treat the Idaho C-Corporation as a separate business, a court can decide that it doesn’t exist. This would mean that the owners are instead doing business as individuals who are personally liable for their acts.

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