Tuesday 23 September 2014

The company I work for located in California is offering me 10 of equity in the company with stock option starting immediately and vesting ...

Question

The company I work for located in California is offering me 10% of equity in the company with stock option starting immediately and vesting over 2 years. It is incorporated in Delaware. My question is, if I were to take this would I be personally liable for any of he company's debt including taxes at any time?



Answer

I would say that the chance is so extremely remote it is not worth worrying about. In order for any shareholder to be held liable for a corporation's debts, the shareholder must have been operating the vompany as his/her/its "alter ego." As an employee shareholder with a 10% interest, you will not be in a position to mismanage the company.



Answer

However, you could be held personally liable for employment taxes if you are in a position to control the tax reporting and/or check signing of the entity.



No comments:

Post a Comment