The Importance of Corporate Formalities

So you've incorporated or formed your LLC, now what? Incorporating offers the power of liability protection but the only way the courts enforce that benefit is if you treat the corporation like a corporation. Unfortunately, people incorporate and continue to treat the company as if it’s a sole proprietorship. Read the 10-most common mistakes business owners make in regards to corporate compliance.

When you incorporated you agreed to meet the legal requirements of corporate ownership. You agreed to follow the corporate formalities that govern the corporate structure.

Some examples of corporate formalities include minutes, resolutions, meeting state and federal filing requirements. Documenting and recording business actions, ownership interests and meeting the annual maintenance requirements.

Without proper Corporate Formalities, your business, your home, your personal investments, everything you incorporated to protect; could be wiped out overnight.

In the eyes of the law, it doesn’t matter if you are the sole person on the board of directors, the only officer and the only employee; small closely-held corporations are under the same legal obligations as big private companies. In fact, it is even more critical that you show separation between yourself and the company.

At Laughlin we've helped thousands of business owners maintain their corporate records. We’ve developed several powerful tools and numerous resources to help you maintain the liability protection your corporation should provide.

Call Laughlin Associates at 1-800-648-0966 and secure the protection your corporation provides today!

Corporate Compliance