Personal Liability in Close Corporations

Your Close Corporation can make you personally liable for all its debts. That's right,

even though a CC is a separate legal entity, it's not a magic shield for your

personal assets. This business form was designed to be simple and cheap for small businesses,

but it has a serious catch. If you trade recklessly, act fraudulently, or even just let

the accounting officer position stay vacant for more than six months, you can be forced

to pay the corporation's debts from your own pocket. The law is designed to be self-regulating,

meaning it holds you directly responsible. Abuse the corporate form, and you'll pay the

price yourself.