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Thanks for the reply mchannon. Am I to understand from your response that even if I maintain the proper required formalities, and treat the corporation as a sep

• mchannon 14y ago
  As with all court actions, it's not what you did that matters, but rather what they want the court to think you did. Engaged in fraudulent business practices? Commingled funds? Used the corporate entity to further these goals? Sure you didn't. But now you have to prove it in court with the rules biased against you. Spend $10k+ on an attorney (and sit through court proceedings for months) or settle for $10k+ even though they're wrong and they're just shaking you down. Take steps ahead of time to make your venture a less attractive target (lawyers chase money- either their client's or yours). Make it not worth their while, and you will significantly decrease your chances of landing in court. The easiest step? Don't be a single member LLC. If you're an internet retailer, companies like Amazon have in past years located out of OR where there is no sales tax (thus providing a competitive advantage). Other than setting up in Oregon to avoid sales tax, or setting up a C-corp out of Delaware if you're going to raise funding as a serious startup, you get no benefits (and some drawbacks) setting up out of state.
  • aedr 14y ago
    Thanks for the detailed reply mchannon.