Protect Your Business Structure and Avoid Piercing The Corporate Veil

It has been estimated that approximately 76% of all businesses that are incorporated are at risk of having their corporate veil pierced.

It actually is very easy to avoid any possible risk by just following a few very simple rules and proceedures.

By reading the information on the right, you will know what to do and how to avoid any future potential of corporate disaster.

In todays world, it is only a matter of time before someone or some legal entity challendges the legality of your corporate existence. Having your paper work in order is the only way you can, with assurance, come clean.

• Our Compliance Service

We offer a customized service, based on your entities requirements and business activity. Whether you require once a year, every month or something in between, we can fulfill your entities legal compliance mandates without stress to you and that is economical as well. Remember, every entity is different and therefore one size does not fit all.

Call us to discuss your situation. We'll tell the easiest and most economical method to satisfy your states requirements. There is never any obligation or future commitment by calling us.

• Have Questions? Ask us and we'll give you our answer. Go Here

"FINALLY - There’s An Easy & Affordable Way
To Protect Your Corporate Veil From Being Pierced,
While Preserving Your Limited Liability & Protecting Your Personal Assets through Corporate Compliance Retainment"
NOW... “Unless You Meet Every Administrative Requirement Of Your Incorporated State, Your Corporate or LLC Veil Protecting You Is As Thin As...Tissue Paper!”

For your corporation to afford you limited personal liability, you must continue to fulfill certain corporate obligations...otherwise

Your Corporation Isn’t Going To Offer You Any Protection Whatsoever From The IRS Or Any Zealous Lawyer Who Wants Your Money!

Forming a corporation is generally thought to be a safe and legal way to limit your personal liability. However, most business owners are unaware of a critical exception that makes your corporate shield about as effective as a toy badge.

The exception relates to a law term known as the “alter-ego” doctrine. In other words, does your corporation have its own on-going and separate existence creating a “corporate veil,” or is it run as an extension of yourself.

The legal “corporate veil” concept is used to protect you from any liability arising from corporate debt or corporate action.

This means, if your corporation owes someone money, your “corporate veil” prevents that person (or company) from coming after you for money, should your business (for whatever reason) not pay the bill.

A “corporation” refers to ~ C corps, S corps, LLCs and LLPs - so these rules apply to all kinds of business owners.

Here’s another example of how the “veil” is thought to work, and how it actually works:

Say your business owns trucks, cars or any other equipment. If one of your employees is hurt while operating the equipment, or if a customer or a pedestrian is injured by any of this equipment, “conventional wisdom” says the “corporate veil” will protect you.

That means if the injured person wishes to sue you for damages, they can’t. They can (supposedly) only sue your business. Contrary to popular belief...

In All Likelihood, Your Corporate Veil Will Do Nothing To Protect Your Personal Assets Unless You Meet State Requirements

Corporations must meet legal requirements at the time they are incorporated and every day afterward in order to enjoy the full protection of the “corporate veil.” Without exception...

There Is A Stack Of Legal Formalities That Must Continue To Be Met... Every Month!

When you incorporate, you “sign up” for and agree to abide by the state statutes that govern how your business is supposed to be run.

Then and only then, if you qualify by meeting the State’s requirements, your corporate veil can extend to protect your personal assets. But make no mistake about it...

Unless You Meet Your State’s Every Requirement, Your Corporate Veil Is As Thin As... Tissue Paper!

Corporations exist only on paper and through their corporate charter... their corporate by-laws... the board of directors’ resolutions... and their stock certificates. These items have probably been inserted into your corporate book, a 3-ringed maroon binder with your corporate seal.

WHAT ARE THE RULES?

If you can prove that your corporation has its own on-going and separate existence, and that it’s not merely an extension of you, then you qualify to be protected by your corporate veil.

The key words are “ongoing” and “separate”. You see, your board of directors runs your corporation. That’s true whether you have one board member... 10 board members... or if you are a publicly traded corporation.

Your board of directors makes strategic and operational decisions about how your business is going to operate, what it is going to do, and when it is going to do it.

Then, after the board approves and authorizes these actions, the officers of the company... the President, Vice Presidents, Treasurer, Secretary, and so on... these people then implement the actions that the board has decided to carry out.

Again, this holds true regardless of whether you have one officer and it’s you, or if you have 15 officers all spread out around the country.

The “ongoing” written documentation of board of director resolutions... their consents... and the minutes of their meetings, create the only verifiable and physical proof your company exists. In fact...

In The Eyes Of The Courts, This Is The Only Way Your Business Gets To Continuously Exist.

The Bottom Line Is This:

Corporate record keeping is just another cost of doing business. And frankly, in comparison to some of the other things we are required to do (like paying income taxes... having to get a license or a permit to do almost anything... and having to buy things like fire insurance every year) the cost is pretty small, especially when you consider the return you get in the form of protecting your assets and valuable tax advantages.

“Finally, An Easy Way Out... Without The Hassle Using Corporate Compliance Retainment Services!”

Remember, to avoid problems, all you need to do is diligently abide by and follow all the corporate formalities required by your state and the federal government.

QUESTIONS & ANSWERS

WHAT TYPES OF DECISIONS NEED TO BE AUTHORIZED “IN WRITING”?

Any major action you take as an officer or director has to be duly authorized and documented by a resolution of the shareholders or the board, or by both in some cases.

WHAT SHOULD BE DOCUMENTED?

The answer is always “whatever you don’t want to be personally liable for.” If you don’t document proper board authorizations for your actions, you might as well just sign a personal guarantee on that action.Things like:

• opening a bank account,
• signing a lease or contract
• hiring an accountant or lawyer,
• hiring or firing a key employee,
• buying or selling a real estate property
• getting a mortgage...
• etc.

these and more are major actions of your company. For our clients, we have a checklist of almost two hundred actions that we review for every month!

The courts and the IRS will not recognize your corporation as a separate entity (with separate liability protection for you) unless these things are done regularly and consistently.

WHAT ABOUT A ONE-PERSON COMPANY?

YES, even a one-person company should be documenting several dozen actions each year, just to keep their corporation alive and functioning for just that one year.

This documentation becomes the evidence of your corporation’s existence.

IF THERE IS NO DOCUMENTATION, ARE THERE PENALTIES?

YES. If the courts or the IRS do not recognize this separateness because there is no documentation... there is no corporate veil and no separate asset protection for you!

If you “play by the rules”, have diligently kept up with the legal “formalities” of owning and maintaining your business in an “ongoing” fashion, then don’t worry because case law is on your side, for once. Your corporate veil is bulletproof.

However, if you have not, because like many business owners you are w-a-y too busy just trying to make it through the end of the day alive and in one piece...

Watch Out Because The Sharks Will Be Circling Around You Like Bait!

WILL IT EVER HAPPEN TO ME” THINKING

You should know that there were over 21 million lawsuits filed in the Unites States last year. And as a business owner, your odds of being sued are better than your chances of bowling a strike. In fact, your odds of being sued every year are 1 in 3.

BUSINESSES OF ALL KINDS ARE THE TARGETS OF:

• aggressive lawyers...
• disgruntled employees...
• the IRS...
• state and local taxing authorities...
• regulatory bodies...
• unreasonable customers...
• jealous competitors and
• crazed creditors who insist on making their problems, you problems.

These kinds of lawsuits are the bread and butter of litigation attorneys and their “lawsuit-lottery” clients.

These Legal Sharks Have Only One Agenda: To Make Your Personal Property...Theirs!

Against most sadly unprepared business people, it’s like taking candy from a baby. They make it w-a-y too easy. You can read horror story after horror story of business owners who’ve had their personal property strip-mined and their assets pillaged, because they didn’t “get it in writing.”

THE SIMPLE FACT IS:

If you do not keep your books current it’s almost impossible for the court to protect you. Without the written proof, the court can’t legally recognize your company has its own “life”.

You’re a walking target, set up to lose any case against your corporation and be held personally responsible for your corporate liabilities. And according to the Cornell Law Review, once the courts determine you have not kept up the separate existence of your corporation, 96% of corporate veils are then successfully pierced!

You Better Make Sure Your Corporate Veil Is Made Of Steel... Instead Of... Tissue Paper!

CORPORATE COMPLIANCE MADE EASY

This book, along with its CD, contains over 98 forms and templates, which will allow you to record your Board of Directors meetings as well as the resolutions that are passed. Formatted for both PC and Apple, all forms and templates are in printed form and .RTF format on the CD. All forms are in the proper legal verbiage.

Now you can always fully compliant. Even if you’re years behind in your records, you caught up in no time. The greatest thing - it will only cost you cents on the dollar to always stay in compliance.

• DON'T PAY an attorney to do this for an average cost of between $450.00 to $600.00.
• DON'T HIRE a private firm to do it for an amount that is slightly less at approximately $375.00.
DON'T EVEN PAY for this service that periodically is offered to you by mail for a one time fee of $150.00.

NOW, you have the ability to do this yourself with all the forms and complete instruction at a fraction of those prices, regardless of the number of entities you have.

This complete Compliance Kit is for the compliance of corporation, either C or S, and LLC's,
for the low cost of
$97.00.
There is no reason to deliberately put off, delay, or ignore doing your monthly, quarterly, semi-annual, or annual minutes & resolutions.

Don't play the Corporate style of "Russian Roulette" with your limited liability that is protecting your assets, Not even for the low cost of $97.00.