Is there a difference between personal tax liens and business tax liens?

Answer

Yes there is. When a business person owns personal property (including a home(s)) usually that person will put most of the personal assets into their wife's name. This action protects the business person in such situations as bankruptcy and liens. The house and property can't be touched as an asset. Although highly not legal, a person in a business can hide (within reason) many of the tools of their trade (storage) or have another person store it for them.

EXAMPLE:

If you had a company that made motorcycles and you were behind on your taxes or going bankrupt a lien will be put on your business and in most cases your business or personal accounts will be frozen. You could hide some tools used in your business (I wouldn't recommend this) or, you could put some of the business in your wife's name, but if there is a lien against you it's a little late for this now. If you aren't married and everything is in your name, then you run the risk of losing everything.

When running a business it's really conducive to have your own lawyer and also have at least a CGA do your personal and business taxes. There are more write-offs than you can ever know and you may miss them if you don't file for them. If you have your taxes done by a CGA it is less likely the IRS or (Revenue Canada) will check your records re paying taxes.

First answer by Marcy. Last edit by Marcy. Contributor trust: 3697 [recommend contributor]. Question popularity: 67 [recommend question]