That means that as a principal, you cannot hide behind the corporation and will be personally liable for these taxes if they are not paid. It cannot protect you from some state laws. New York, for example, has a law which says that the ten largest shareholders of a corporation are personally responsible for unpaid employee wages. If a restaurant operates for three years and goes out of business, the owners and principals are personally responsible for any unpaid salaries. It cannot protect people in certain professions.
Professionals including doctors, lawyers, and accountants are personally liable in any lawsuit.
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