Business Lawyers Blog
Businesses are subject to many types of liens, such as civil judgments, tax liens, and mechanic’s liens. These liens, and many others, can impair your company’s ability to turn a profit. Protect your business assets by being proactive and contacting a San Jose corporate attorney.
What is a Lien?
A lien is a type of security interest on real or personal property, granted to a third party, that secures a debt payment or performance of an obligation. Until the debt represented by that interest is paid, or performance completed, the third party that owns the lien can and will prevent the property owner from enjoying the full legal rights associated with the property in question.
For example, if a business does not pay its taxes, the IRS or the California Franchise and Tax Board may place a tax lien on its assets. As mentioned earlier, the lien can affect both real and personal property, so the lien could conceivably be placed on a company’s buildings and even its bank accounts.