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Are you the only proprietor of your C-Corp? "Corporations. Corporations (both C corporations and S corporations) have the strictest internal requirements, incl
by DINKDINK 10y ago
Are you the only proprietor of your C-Corp?
"Corporations. Corporations (both C corporations and S corporations) have the strictest internal requirements, including holding initial and annual director and shareholder meetings, adopting and maintaining updated bylaws, issuing stock to shareholders, and recording all stock transfers.
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Facing the consequences
If a corporation or LLC is sued and unable to show it met all corporate or LLC formalities and state requirements, a judge can rule that the company has been acting more like a sole proprietorship or general partnership. This can result in “piercing the corporate veil” meaning that limited liability protection disappears and leaves individual owner(s) assets vulnerable if a lawsuit judgment is made against the company."
Source:
http://www.bizfilings.com/learn/business-compliance.aspx http://www.bizfilings.com/learn/business-compliance.aspx
I've found that bizfilings has a wealth of high-quality information on incorporation and other requirements for starting a business
- soared 10y agoYeah I am the only owner. Luckily I had a startup lawyer helping me for free, and the general message was to just act like a business and you'll be treated like a business. Keep records of things, don't mix personal and business money, etc.
- morgante 10y agoThis is part of why people incorporate in DE. The courts there make piercing the veil quite challenging.