Investopedia

Continue to Site »

Corporate Lien

Filed Under »
Dictionary Says

Definition of 'Corporate Lien'

A claim made against a business for outstanding debt. The debt can be owed to another business, or could be in the form of tax obligations to the government. For example, the federal government may impose a corporate tax lien on a company that fails to pay payroll tax or some other tax obligations. The corporate lien is placed on the company's assets to indicate that the company has financial obligations outstanding.



Investopedia Says

Investopedia explains 'Corporate Lien'

Companies, like investors, are responsible for the debt that they take on, as well as other financial responsibilities, such as paying their employees. If a company cannot meet its obligations, investors can step in and purchase the corporate lien, which settles the obligation with the lending party and allowing the investors to pursue compensation from the company and possibly any penalties they may be subject to. If the company ultimately declares bankruptcy, holders of the corporate lien may also be more likely to have a higher priority than stockholders.

Articles Of Interest

  1.

    Warning Signs Of A Company In Trouble

    Don't let your clients go down with ship! Learn how to escape sinking with these tips.

  2. IRS Asset Seizures: Could It Happen To You?

    If you can't pay your taxes, know that the IRS has many avenues for collecting what you owe.

  3. An Overview Of Corporate Bankruptcy

    If a company files for bankruptcy, stockholders have the most to lose. Find out why.

  4. Holding Titles On Real Property

    Find out how best to claim and convey ownership on your assets.

  5. Taking Advantage Of Corporate Decline

    A bankrupt company can provide great opportunities for savvy investors.

  6. Approved: Paying Online Sales Tax

    States will now be allowed to collect sales taxes on purchases made from Internet-based retailers even if the retailer has no physical presence in that state.

  7. Do Personal Income Tax Cuts Foster Economic Growth?

    Studies show that cuts to personal income tax rates will improve tax revenues, but not lead to economic growth.

  8. Best States For Company Headquarters

    Texas, Florida, Virginia and Utah are considered to be some of the best states to do business in. Find out why.

  9. How Paul Ryan's Proposed Plans Will Affect Americans

    Romney's running mate wants to reduce government spending and entitlement programs. What does this mean for the average American?

  10. Countries With The Highest Tax Rates

    Find out how America compares to other nations when it comes to factors such as overall tax burden and total number of hours spent on taxes.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center