Questions about being Incorporated

[vscheer]

What is the name of your state (only U.S. law)? Pennsylvania

Two years ago I married a man who owns his own company. He is incorporated as a single owner. I have recently found out that he owes hundreds of thousands of dollars in back 941 taxes and unemployment taxes. With being a new wife, this is quite shocking to me. Should my husband die, would I be responsible for this large debt? And what can I do to protect myself from being responsible for any new debt he incurrs?

 

[LdiJ]

What is the name of your state (only U.S. law)? Pennsylvania

Two years ago I married a man who owns his own company. He is incorporated as a single owner. I have recently found out that he owes hundreds of thousands of dollars in back 941 taxes and unemployment taxes. With being a new wife, this is quite shocking to me. Should my husband die, would I be responsible for this large debt? And what can I do to protect myself from being responsible for any new debt he incurrs?

No, as long as you are NOT a shareholder of the company you would not be responsible for the debt, new or old. However, any asset owned jointly by the two of you, as well as any joint banking accounts would be at risk. Therefore keep separate bank accounts and do not own anything jointly.

If he were to die, his estate would be responsible for the taxes, therefore don't plan to inherit anything from him...because the IRS is probably going to take it all.

 

[vscheer]

I don't think he owns anything. The trucks for the business are in my name alone. We rent an apartment. We do not have any joint bank accounts. I guess I know why he wants things this way now. He has no will that I'm aware of. I do have life insurance on him. Can they take that? What happens if he has no estate? What happens to the debt?