Question Details:I have an overdrawn business checking account of $17,000.
In most states it is illegal to write a check for funds that you know are not in the bank account. If the bank finds out that the account is overdrawn they notify the customer and usually there are certain overdraft fees that are assessed against the account. The police are generally not notified unless the people that you wrote the checks to make complaints and accuse you of writing bad checks. While the corporate liability shield protects you from civil liability, the corporate shield does not protect you against criminal charges that you commit within the scope of your duties in the company. If you have not been charged yet, you may be in the clear. However, if you are charged (which the state can do), hire a lawyer to get involved.