How important is it to maintain corporate records?
Critical. Forming a corporation in and of itself does not guarantee asset protection and separation of business and personal liability. There are numerous requirements for a corporation by law. A corporation must follow certain formalities including holding annual meetings, filing certain annual reports and having separate bank accounts to name a few. Should your corporation ever be involved in a lawsuit, the way you have run your company will determine the strength of your corporate shield.
Critical. Forming a corporation in and of itself does not guarantee asset protection and separation of business and personal liability. There are numerous requirements for a corporation by law. A corporation must follow certain formalities including holding annual meetings, filing certain annual reports and having separate bank accounts to name a few. Should your corporation ever be involved in a lawsuit, the way you have run your company will determine the strength of your corporate shield.
