If you are operating a sole proprietorship business you will be personally liable for all debts of the business. If you are a status Indian section 89 of the Indian Act will protect your property situated on reserve from seizure. However, any property that you own situated off-reserve is subject to seizure for the debts of your business. What is generally done in the case of a tax liability is that Quebec or Canada will withhold tax credits or government payments that you may be entitled to in compensation of your tax liability.
Source: Hamilton, Cooper, Ashkenazy
Posted in: Small Business Services