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RANT Am I liable as a 5% shareholder?

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

  1. TreyAllDay

    TreyAllDay Whatever it takes Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Likes Received:
    Feb 9, 2016
    Edmonton, AB
    Rep Bank:
    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

    Merging Left Silver Contributor Read Millionaire Fastlane Speedway Pass

    Likes Received:
    Jul 20, 2014
    Rep Bank:
    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.

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