i am planning to incorporate an accounting firm on my own name. my question is that if the name of company, which i am the only shareholder and director,is same as my family name am I liable personally?
Asked 4 months ago in Thornhill, Ontario
Categories:
Business Law
 |
 Ontario lawyer
|
The general answer for a regular business corporation is no. Unless a shareholder provides a personal guarantee, a shareholder is not liable for the debts and obligations of a corporation. You need to be sure that people you deal with clearly understand that they are dealing with the corporation and not with you personally. The full corporate name (including Limited, Ltd., Incorporated, Inc., Corporation or Corp.) should be on all documents, including business cards and advertising.
However, if your profession is governed by an act, such as the Certified General Accountants Act, 2010 or the Chartered Accountants Act, 2010, then you cannot have a regular business corporation but only a professional corporation and shareholders of a professional corporation remain personally liable for professional liability.
You really should enlist the assistance of a corporate lawyer to set up your corporation.
Cheers,
Posted 4 months ago
Larry Crossan, BCom, JD, MBA
Certified Specialist (Corporate and Commercial Law)
P: 519.858.2222 | F: 519.858.2323
629 Wellington Street, London, ON N6A 3R8
www.lexcor.ca
Strictly Business®
Please note that this is for informational purposes only and does not constitute legal advice to you. Legal advice pertaining to your particular situation can only be provided by a lawyer who has met with you to obtain all pertinent background information necessary to give you a formal legal opinion. For formal legal advice, hire a lawyer (many give a free first consultation).
Contact Larry Crossan, search
the Lawyer Directory, or use our free Lawyer Referral Service.
 |
Ontario lawyer |
You should also be aware that although it is relatively rare, there are some cases in which the court has gone behind the corporation to impose liability on its owner - it's called "lifting the corporate veil".
Posted 4 months ago
Please note that this is for informational purposes only and does not constitute legal advice to you. Legal advice pertaining to your particular situation can only be provided by a lawyer who has met with you to obtain all pertinent background information necessary to give you a formal legal opinion. For formal legal advice, hire a lawyer (many give a free first consultation).
Contact Wayne P. L. Cusack, search
the Lawyer Directory, or use our free Lawyer Referral Service.
Follow Us
