Simply forming a corporation or an LLC won’t protect you from individual liability if your company fails to pay sales tax it owes in Ohio. Individuals can be held personally liable for the sales tax debts of a company. Further, the dissolution, termination or bankruptcy of a company will not discharge a responsible officer, employee’s or trustee’s liability.
Ohio Revised Code Section 5739.33 states that those individuals, corporate officers or trustees having control or supervision of, or charged with the responsibility of filing returns, making payments, or executing the corporation’s or business trust’s fiscal responsibilities can be personally assessed for the outstanding trust tax debts of the corporation.
State tax liability should not be taken lightly. Entrepreneurs and corporate officers should take care that the required reports are filed and payments are timely made.