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For someone living in the US who owes personal federal income tax. Is it possible to open a new company in such a way to protect the company/financials from personal taxes owed?

  • What's the point in protecting the company if the government becomes its owner? Are there other investors? – David Schwartz Jul 2 at 5:05
  • There are no other investors, the question essentially was to be able to own the company and have it be isolated from personal finances/taxes. – Exocomp Jul 2 at 11:06
  • If there are no investors to protect, what would the point be? If other people are relying on the business, it makes sense to protect it against legal process involving one person. But if there's nobody to protect, what is the objective? – David Schwartz Jul 2 at 19:13
  • If the personal taxes owed are in the past by a few years, the question I had is if there an option to open a company whose assets/financials going forward would be protected from the personal taxes owed (say from 3 years ago). Essentially, if the newly established company makes money, can the assets/financials of the company be seized to offset the old personal taxes owed? – Exocomp Jul 2 at 20:58
  • But what good would that do exactly? Say you could pull this off. What would the benefit be? If you couldn't protect the interests of the only owner of the company, what purpose would protecting the company serve? You want to use the company to keep making money to help pay off the taxes? The IRS will be happy to let you even without a new company. – David Schwartz Jul 3 at 2:29
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Nope, it is not.

As long as you owe something, it can be seized. If you use personal funds to create an entity that is detached (which is expensive, not worth it for small businesses) then this is breaking the veil as you basically default your debtors. So, it can be seizted.

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