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Corporate liability does not shield you from fraud, negligence, or other torts.

It most certainly does shield you from personal liability for debts the company incurred in good faith (meaning: virtually all the company's debts).

People on this thread are giving what seems to me to be some spectacularly bad advice. Do not throw your own personal finances down the toilet after your company's.

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When a C Corp starts out it has no credit rating. You have to back it with your credit until the corporation can stand on it's own. Some of these debts will fall back to those who guaranteed them.

The corporation could file for bankruptcy and possibly the bankruptcy court could sort it all out, which sounds like the best thing for those involved.

That is correct. However does that make it a good idea to do so?

Yes.

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