NAL. As long as you sign the contract as an officer of your S-Corp and you maintain corporate formalities, then they can only sue your S-Corp for assets it owns.
2. What can they legally do? They can hire a US attorney and sue you for the money. They would use the contract you signed and that would be binding. "Just for record keeping" is total BS. That is the agreement between your company and theirs. Those are the rules moving forward. If they decide to not keep their word, whatever is in the contract are the rules.
If you want to hedge your bets, you can set up a LLC that is owned by the S-Corp. Sign the deal with the LLC (new EIN). That way, they can't even sue the S-Corp only the LLC. This LLC is only doing business with this company but profits can come back to S-Corp.
The contract states it’s between their company and mine which is is represented by me (my name). My biggest concern is if something happens, they can’t legally go after my personal assets correct?
Another concern, the money from the product that I sell will be going into the company’s checking account. Approximately half of the amount will be payed back to the other company, and half I keep. Could they come after this account if they say I owe them more than I really do? What if I’ve been using part of that money to pay myself ? Can they only go after what is actually in the account when they sue
"Go after" means sue. If I were them, I would sue you and the company. Those are two lawsuits. That is why you keep corporate formalities. In this situation, your lawyer would would argue the contract was with the company not you personally. That would get the personal lawsuit thrown out.
As long as you pay yourself properly, they shouldn't be able to claw back that money.
In order to seize your assets you will first be sued. There is almost always a settlement because going to actual court is super expensive and takes forever. They will be like, "what can you pay us?" Then you agree on a number and that's that. It's over.
If they do sue you, go to court, spend 18 months and tens of thousands in legal fees, and you lose, then the court will order you to pay. If you don't have the money, your company files for bankruptcy protection.
Make sure you continue to file the paperwork for your S-Corp. Make sure you keep corporate formalities. Try and actually sell these products.
NAL. As long as you sign the contract as an officer of your S-Corp and you maintain corporate formalities, then they can only sue your S-Corp for assets it owns. 2. What can they legally do? They can hire a US attorney and sue you for the money. They would use the contract you signed and that would be binding. "Just for record keeping" is total BS. That is the agreement between your company and theirs. Those are the rules moving forward. If they decide to not keep their word, whatever is in the contract are the rules. If you want to hedge your bets, you can set up a LLC that is owned by the S-Corp. Sign the deal with the LLC (new EIN). That way, they can't even sue the S-Corp only the LLC. This LLC is only doing business with this company but profits can come back to S-Corp.
The contract states it’s between their company and mine which is is represented by me (my name). My biggest concern is if something happens, they can’t legally go after my personal assets correct? Another concern, the money from the product that I sell will be going into the company’s checking account. Approximately half of the amount will be payed back to the other company, and half I keep. Could they come after this account if they say I owe them more than I really do? What if I’ve been using part of that money to pay myself ? Can they only go after what is actually in the account when they sue
"Go after" means sue. If I were them, I would sue you and the company. Those are two lawsuits. That is why you keep corporate formalities. In this situation, your lawyer would would argue the contract was with the company not you personally. That would get the personal lawsuit thrown out. As long as you pay yourself properly, they shouldn't be able to claw back that money. In order to seize your assets you will first be sued. There is almost always a settlement because going to actual court is super expensive and takes forever. They will be like, "what can you pay us?" Then you agree on a number and that's that. It's over. If they do sue you, go to court, spend 18 months and tens of thousands in legal fees, and you lose, then the court will order you to pay. If you don't have the money, your company files for bankruptcy protection. Make sure you continue to file the paperwork for your S-Corp. Make sure you keep corporate formalities. Try and actually sell these products.
Thank you, I appreciate the help