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C-Corporations > Liability - Pg. 21

First Steps 21 Figure 2.4. Tax planning isrequired to minimizedouble taxation ofC-corporation profits. Liability With some exceptions, shareholders, directors, and officers are protected from the corporation's liabilities by what is known as "the corporate veil." If the company goes bankrupt, creditors cannot look past the corporation's assets to the owners for satisfaction of debts. If money damages are awarded to a party suing the corporation, that party cannot look to the owners for the award. Gen- erally, shareholders can only be held liable for the debts of the corporation if a court finds that they used the corporation to intentionally perpetrate a fraud or injustice.