Starting a Business with someone who has file bankrupcy before

[USER-ID-01]

This person and i have developed some web based products and are looking into incorporating with two others. The person who will hold majority of shares has filed for bankrupcy when his company folded a few years ago. I am not sure if the IRS has finished with him or not.

What kind of exposure do I have by starting something new with him?

ID01.
State of Washington

 

[azatty]

Your personal exposure really depends upon a lot of facts that you haven't posted. In a "vanilla" case where you simply go into business with someone whose debts were all discharged in bankruptcy before you do anything, there isn't much to worry about. Where you have tax debts, a former business owned by the debtor that is similar to your new business, products developed before or during a bankruptcy, or non-dischargeable debts, the situation gets more complicated. Those facts are critical to the analysis.

I'd suggest that both you and your future partner sit down with a bankruptcy attorney who knows a thing or two about business formations and discuss the matters with him/her.

 

[USER-ID-01]

New business venture

Thanks for the advise