• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. Join 40,000+ entrepreneurs
    who are kicking butt and
    winning their dream life.

    Unscripted™ Entrepreneurship:
    A Business That Pays More Than Money, It Pays Time.

    "Fastlane" is an entrepreneur discussion forum based on The Unscripted Entrepreneurial Framework (TUNEF) outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED™). From multimillionaires to digital nomads, the forum features real entrepreneurs creating real businesses.

    Download (Unscripted) Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

FORUM SEARCH

Get answers about starting a business from real entrepreneurs. Powered by Google.

RANT Am I liable as a 5% shareholder?

Discussion in 'Asset Protection/Taxes/Legal' started by TreyAllDay, Jun 6, 2018.

  1. TreyAllDay
    Offline

    TreyAllDay Silver Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    249
    Likes Received:
    533
    Joined:
    Feb 9, 2016
    Gender:
    Male
    Location:
    Edmonton, AB
    Rep Bank:
    $2,923
    Hello All,

    I'm curious - what are the liabilities of being a shareholder in an organization? There seems to be conflicting advice online. A friend of mine who I was helping to get a business started randomly said one day, "You're going to be a 5% shareholder!". I didn't address it at the time or even make comments, brushed it off, as I didn't know when he was going to incorporate immediately, however I received a text this morning saying - "I've incorporated, you're a 5% shareholder!".

    So I'm curious - is there any chance whatsoever of liabilities for being listed as a 5% shareholder on incorporation documents?
     
  2. Merging Left
    Offline

    Merging Left Bronze Contributor Read Millionaire Fastlane Speedway Pass

    Messages:
    195
    Likes Received:
    338
    Joined:
    Jul 20, 2014
    Gender:
    Male
    Rep Bank:
    $2,230
    My first thought is that no, you are not liable. People who own stock in companies are not liable for the activities of the companies, right?

    Further, you're not an officer in the company and have absolutely no control over the decisions of the company, correct?

    Still, talk to a lawyer.
     

Share This Page