How Do I Hold You Liable? Let Me Count The Ways . . .
When the owner(s) incorporate an existing business, the corporation is not necessarily a tabula rasa with respect to the creditors of the business being incorporated. Indeed, a creditor of the business may try to hold the corporation or its assets liable under several possible theories, including:
A creditor's success under any of these theories will, of course, depend upon a variety of factors, including the nature of the creditor's claim, the mechanism by which the corporation is created, and/or even the intent of the transferor. Thus, while there may be a multiplicity of theories, success is by no means assured.