Small Business Owners May Be at Risk of Being Personally Liable
Business Ownership comes with great satisfaction, but it may also come with great liability! Are you protected?
Forming a business entity (corporation, llc, partnership, etc) is only the very first step of many more to take in protecting you. After you form your business entity, you are not just a business owner, you have to act like one.
Are you keeping up with your meeting minutes, resolutions and other business records? Do you know what your governing documents are? If you don’t know what any of these items are, then more than likely, you are not observing corporate formalities.
What are corporate formalities? That’s what’s going to keep you out of trouble. Failing to act like a business, may get you into trouble and open the door for creditors to pierce the corporate veil. And what happens when someone pierces the corporate veil? You really don’t want to know.
Corporate formalities are important for a small business organization as they can protect business owners as well as their organizations. Small organizations should continuously observe their corporate formalities in order to compete in competitive market. To save your company, and yourself, from liability, you need to hire an attorney to help you keep up with corporate governance.
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