Social Media Accounts and Subchapter S Election—All Vital Assets (Volume 40, Number 2–February 2024)
Author: Mark A. Salzberg.; Michelle N. Saney.
Source: Volume 40, Number 02, February 2024 , pp.17-22(6)
Abstract:
The use of social media accounts by companies is now commonplace and these social media accounts have themselves become valuable assets. In a recent bankruptcy case, the debtor company sought to sell substantially all of its assets, and the bankruptcy court had to analyze who owned the debtor’s social media accounts, the debtor or the debtor’s former CEO. The bankruptcy court also had to consider whether the debtor or the former CEO controlled the debtor’s S corporation election, and therefore the ability to potentially shift millions of dollars of tax liability to the debtor. This article addresses the bankruptcy court’s analysis and rulings as well as the significant impact these rulings may have on the financial services sector.Keywords: In re Vital Pharm; Ownership of Social Media Accounts; Section 363 Sales
Affiliations:
1: Squire Patton Boggs (DC); 2: Squire Patton Boggs (NYC).