Sometimes business owners get so caught up in running a business that they forget about the little things. In the mind of an owner of a business, specifically one formed as a corporation, following corporate formalities is probably far down on the list of important items. This should not be the case.
Forming a corporation provides protection to the personal assets of its owner. This is one of the main benefits of forming a corporation. However, if corporate formalities are not followed, it is possible for the “corporate veil” to be pierced, resulting in an owner’s personal assets no longer being protected.
There is an extensive list of corporate formalities that must be followed, which might feel overwhelming to a business owner. Some of the formalities that must be followed include: corporate bylaws, shareholder and director meetings (including meeting minutes), a stock ledger, a bank account separate from that of the owner, filing of taxes, and adequate capitalization.
Business attorneys, such as Janathan L. Allen, APC can help business owners ensure that they’re in compliance with all corporate formalities. The attorneys at Janathan L. Allen, APC will assess your business’ current level of corporate compliance, and will be able to assist you in bringing your corporation into total compliance with all corporate formalities. They will be able to draft any necessary documentation, and will advise you on steps that you will need to take to be compliant.
For assistance with compliance with corporate formalities, or any other legal needs your business may have, please give us a call at 866-631-3470 to schedule a complimentary, initial consultation with one of our legal professionals.
