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Avoiding Personal Liability for Payroll and Other Employer Tax Obligations

By Michael E. Mooney
April 27, 2012

Like most businesses, law firms have payroll and other tax obligations with respect to amounts paid to their employees. Although many firms operate in corporate, LLC or even LLP form in order to protect partners individually from liabilities, their partners may be surprised to learn that they may be personally liable if the firm fails to fulfill its obligations associated with employee compensation and benefits payable by the firm. It is important that firms be aware of this potential personal liability and the ways to avoid it.

There are four major areas where personal liability may arise.

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