Am I legally liable for signing documents at work? 3 Answers as of January 17, 2011

I am an employee at a business my boss has made me president for the use of signing documents and checks. My question is if I sign documents for things such as purchasing of other businesses and purchases of vehicle and such, am I in anyway held responsible?

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Givner & Kaye
Givner & Kaye | Bruce Givner
Your question is not about taxes, and I am only a tax lawyer. You need a corporate lawyer.

However, for a quickie response: If you are the president, and you are acting in the course and scope of your employment as president, then you should not have personal liability. Caution: you could have personal liability for the corporation's failure to pay the employer's share of payroll taxes.
Answer Applies to: California
Replied: 1/17/2011
Steven J. Fromm
Steven J. Fromm | Steven J. Fromm & Associates, P.C.
Do not agree to this. Under federal tax law, there is a concept called "responsible person" which can trigger individual liability for corporate payroll taxes that are failed to be remitted by the corporation. By signing on as President you risk personal liability and a whole host of legal problems if the corporation fails to remit payroll taxes. Additionally, if there are sales taxes involved, you could have personal liability if these taxes are not paid by the corporation. The IRS automatically sues the President in these responsible cases, so at a minimum you would need to retain tax counsel to defend any action brought against you. This would be extremely costly. At a maximum, you would incur these costs and if you lost the case your personal assets would be seized by the IRS.
Answer Applies to: Pennsylvania
Replied: 1/17/2011
LT Pepper Law
LT Pepper Law | Luke T. Pepper
You will be held responsible as a officer of the corporation but not as a person.
Answer Applies to: Pennsylvania
Replied: 1/17/2011
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