Originally posted by LadyInTheRed
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The situation is different with a corporation than it is with a sole proprietorship. The corporation is an asset that needs to be valued, listed on your petition and exempted if possible. Your corporation is separate from you and hopefully you treat it that way (i.e., you don't use the corporate checking account to pay your personal expenses). Assuming you do, income that you receive from the corporation (via dividend payments or a salary) is listed as income on your petition. The corporation may have receipts that are sitting in an account so that it can pay liabilities as the bills come in. That comes into play when determining the value of the corporation, but it is not considered income to you until you, an individual, receives the income.
If you haven't observed corporate formalities and managed the corporation separately from your own assets and income, than the trustee could try to pierce the corporate veil and treat it more like a sole proprietorship.
If you haven't observed corporate formalities and managed the corporation separately from your own assets and income, than the trustee could try to pierce the corporate veil and treat it more like a sole proprietorship.
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