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.Click for Boise Payroll Service Click to Form an Idaho Business