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liability of s-corp to purchase additional business

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S

Sherri

Guest
I have a WI B&B which is an S corporation (family owned). I have a offer on a nonrelated business which will be run under a General Partnership Agreement (nonrelated partners). The bank wants us to put up the B&B assets against the loan for the General Partnership business. What are the liability risks with this? Would an injury/lawsuit involving one business possibly affect/tap into the resources of the other business? The liability of the S Corp being affected by the death or other problem with the nonrelated partner in the General Partnership? Would the S corp be liable if the Partnership property went under?
 


I AM ALWAYS LIABLE

Senior Member
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Sherri:
I have a WI B&B which is an S corporation (family owned). I have a offer on a nonrelated business which will be run under a General Partnership Agreement (nonrelated partners). The bank wants us to put up the B&B assets against the loan for the General Partnership business. What are the liability risks with this? Would an injury/lawsuit involving one business possibly affect/tap into the resources of the other business? The liability of the S Corp being affected by the death or other problem with the nonrelated partner in the General Partnership? Would the S corp be liable if the Partnership property went under?<HR></BLOCKQUOTE>

My response:

Way, way, way too complicated for this site. I'd need reams to go into all of the variables and scenarios you bring up, and even those you haven't thought about. Go see a "corporate" attorney for detailed advice, and perhaps your CPA also.

IAAL



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