S corp

[kavata]

we are an S corp in PA, dba a travel agency. am closing retail location to do leisure business from home, but still have 2yrs on airline res system contract. can crs provider sue me for bal on contract if I keep S corp viable? (the IATA number i need to continue booking through tour companies and cruise lines is registered to corp)

 

[ALawyer]

There are lots of issues, including

1) did you personally guaranty or sign as well as the corporation? If so, you're stuck.

2) does the corporation have any assets you would be taking and using? If so, ditto to the extent of the value you take.

3)was the corporation operated in a proper manner so you would be be immune from its liabilities, should anyone seek to "pierce the corpoate veil", and if not you're potentially liable IF they go that far.

4) what will happen with the IATA number? If you use it rather than get a new one, you may be opening yourself up to something.

Ask a local lawyer for a strategy -- you won't be the first travel agency to go out of business.