Does a Coeur d’Alene S Corporation Provide Limited Liability to all Owners/Investors?
Yes. A Coeur d’Alene S-Corporation owners/shareholder usually enjoy limited personal liability for many of their business transactions, but this protection can be diminished if not careful. When your Coeur d’Alene business is formed as a corporation, the required bylaws, minutes, meetings, and solutions are a critical source of protection. These documents are a top priority during a lawsuit and will protect your limited liability status.
S-Corporation owners can be held personally liable if:
- Personally, injures someone.
- Personally, guarantees a bank loan or a business debt.
- Fails to deposit taxes withheld from employees’ wages.
- Intentionally engages in fraud, illegal, or recklessness that causes harm.
- Treats the S-Corporation as an extension of their personal affairs, rather than as a separate legal entity.
- No functioning Bylaws to govern their behavior.
If owners/shareholders don’t treat the Coeur d’Alene S-Corporation as a separate business, a court can decide that it doesn’t exist. This would mean that the owners are instead doing business as individuals who are personally liable for their acts.
Is a Coeur d’Alene S Corporation Recognized Worldwide?
Yes. An CDA S-Corporation is viewed as a US Corporation and is well known worldwide. The only downfall to the S-Corporation structure when dealing with overseas income is the taxation conundrum due to its pass-through characteristics.
Do Taxation apply to Coeur d’Alene s-corporations?
Yes. Pass-through taxation applies to Coeur d’Alene sole proprietorship, Coeur d’Alene partnerships, CDA Limited Liability Company LLC, and I Coeur d’Alene S-Corporations. For taxation purposes, income from your CDA business can be treated as your own personal income.
This is opposed to traditional or Coeur d’Alene C-Corporations, where the company itself pays corporate taxes on income before paying profits as dividends to shareholders.
Is a Coeur d’Alene S Corporation Eligible for IPO Initial Public Offering?
No. Since Coeur d’Alene S-Corporations is limited to 100 shareholders. It is not possible to use an S-Corp to make an initial public offering. Your company would need to be converted to a Coeur d’Alene C-Corporation to be granted the ability to have multiple classes of stock and an unlimited number of shares.