Mohammad and Arjan wish to start a corporation. They meet with an attorney together and complete and sign the necessary paperwork to incorporate within their jurisdiction. The attorney places the documents in the mail. Due to an error with the delivery, the government never receives the notice. Mohammad and Arjan start using the new corporate entity name, Finance, Inc.
The business struggles and a creditor sues Finance, Inc. to recover some unpaid obligation. During the lawsuit, the creditor learns that Finance, Inc. was never properly filed with the government. The creditor wishes to sue Mohammad and Arjan personally. Will the creditor win that lawsuit against Mohammad and Arjan? Why or why not?
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