Close One C-corp Open Another

[ToniBraxton]

Myself and one other person own a pizza parlor we are doing business as a C-Corp. We have been lead to believe that we can just close down the C-Corp we now have and have our wives form another C-Corp under their names and any debt the first Corp had will just go away and the pizza parlor can continue operation under the new corp. This sounds to good to be true. Your comments please.

[Cidro]

No you can't otherwise everyone would do it and no lender would lend to corps. You have to becareful the legal industry is rampit with malpractice and non-attorney advice it only gets worse. You can not simple transfer assets away to another corp for litle to no value. The creditor can take them back as a fraudulent conveyance. If the corp has no assets, closed down its store, and you formed a new corp, and opened a new business at a different location using none of the other corps equipment, inventory, etc., then its plausable.