Why incorporate as a close corporation under NRS Chapter 78A?
The vast majority of individuals incorporate their businesses in order to limit their liability to their investment in the corporation. Even if a business is incorporated, a shareholders personal assets my still be reached by creditors of the corporation in order to pay the debts of the corporation, including civil judgments against the corporation. This occurs when a court of competent jurisdiction pierces the ” corporate veil”. The term corporate veil is a legal “terrm of art” for the state statutory protection limiting the liability of shareholders of a corporation to their investment in the corporation. A court can pierce the corporate veil for various reasons. One of the many reasons for piercing the corporate veil, and the one which is relevant at hand, is when the corporation does not strictly comply with the state’s strict statutory requirements for record keeping and the holding of meetings. A business incorporated under NRS Chapter 78 must strictly comply with the record keep
