#corporate documentation

Corporate Document Services for Growing Businesses

We at the Hartnett Law Group have previously sent corporate housekeeping reminders and tips periodically to assist our small business clients in making sure that precautions are taken to protect your personal and corporate liability. As tax time approaches, and companies engage in corporate “housekeeping,”  we would like to take this opportunity to remind you of the importance of complying with corporate formalities once again.

Unfortunately statistics show, many small to medium-sized businesses (under $250M) fail to follow corporate formalities, which may lead to the corporate veil being pierced, and personal liability being affected.

In order to help avoid potential liability and to assist in complying with corporate formalities we have created the following checklist. Please Click Here to view Hartnett Law Group's Corporate Formalities Checklist. 

Recently, Courts have found a number of reasons to “pierce the corporate veil.” Piercing the corporate veil simply means that if a corporation does not properly observe the corporate formalities that must be followed by each corporate entity, the individuals running the corporation may become personally liable for the acts of the corporation. Court’s have pierced the corporate veil for failure to do the following:

·      Hold an annual meeting

·      Keep corporate minutes in the corporate record book

·      Holding special meetings of the board of directors, when necessary

·      Follow the correct procedures when entering into contracts with the Corporation

·      Keep accurate financial records

·      Do not give personal guarantees

·      Issue stock

·      File Statement of Information annually

·      Comply with corporate documents

When was the last time you checked your corporate record book to ensure that you were complying with the state’s requirements? For more detailed explanation of the above checklist, please Click Here to visit the Hartnett Law Group Resource Center, located on our website.

If you would like to speak to an attorney with any questions or comments, please do not hesitate to contact one of the following:

Patrick M. Hartnett         [email protected]              714.738.1156 Ext. 210

Jessica L. Jasper           [email protected]                   714.738.1156 Ext. 220

Meghan E. George        [email protected]               714.738.1156 Ext. 213

Cordially,

MEG

Meghan E. George, Esq.

HARTNETT LAW GROUP

"Business Law for the Business Person"