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Don't Let Your Corporate Creditors Pierce the
Corporate Veil To Get At Your Personal Assets
 
 
 
 Larry and his wife Maria sat in my office both in tears.  How could this happen they asked?   We said he filed the document with the Secretary of State when he created the corporation.   One week earlier, the sheriff knocked on their front door and served them with an eviction notice.  Their home that they had bought 10 years earlier was no longer theirs.  
 
Larry purchased a franchise restaurant and entered into a lease agreement to rent space in the local mall.  It looked so easy because this franchise was key ready.  The franchiser recommended that he set up a corporation to protect his personal assets.  Sounded like a good idea so he tried to do some research.  
 
Larry talked to an attorney who quoted him a figure of $2,000 to set up his corporation. He didn't know how he could afford this plus all of the franchise fees.  They talked it over and decided this was too expensive.  Why did attorneys have to charge so much.  
 
They found a company online that would only charge small fee plus the state filing fee but they were not sure about this.  A co-worker of Maria told about her husband going to the secretary of states office to do it himself.  He filed a document and he had a corporation.  This is what Larry did. 
 
The business didn't do so well and after nine months, Larry facing mounting bills was forced to close the doors.   They had used all of their savings and that still wasn't enough.  Bankruptcy was not an option because of one prior 5 years ago. 
 
The lawsuits started and Larry was named as a defendant along with the corporation.  The corporation did not have any assets so guess who they were coming after. 
 
There was nothing I could do to help Larry and Maria. Larry had no corporate record, initial organizational records or ongoing minutes. He had also signed the lease and other loans without designating himself as an officer of the company. 
  
 

 

Don't Make This Same Mistake And Risk
All That You Have Worked For


ALL of the clients I see that have incorporated did so to protect themselves from personal liability.

A properly formed and run corporation will shield your personal assets, give you a corporate veil of protection.

To keep this "Corporate Veil" of protection, the corporate formalities must be followed and these formalities are split into two categories.

Money and Paper.

Within these two categories, there are eight total factors in each

MONEY
For the financial category there are three factors that must be met.

  1. Adequate Capitalization - Click Here to Learn More 
  2. Don't co-mingle personal and corporate funds - Click Here to Learn More 
  3. Maintain the proper insurance for your company and industry 

PAPER
You also need to maintain the correct paper trail.

  1. Proper Initial Corporate Records  - Click Here to Learn How to Set Up Your Corporation and the Initial Corporate Records 
  2. Signing documents with correct Signature Block  - See How It Is Done  
  3. Actually issue Stock to yourself as an owner either by certificate or stock register 
  4. Take Company Action wearing the correct hat, Director or Officer
  5. Proper On Going Corporate Records and Minutes 

More about the last requirement of Proper On Going Corporate Records and Minutes.

I am going to give you three options and you MUST choose one of them. If you fail to act, and are sued, you will most likely be personally liable for any corporate debts

  1. You can hire a small business attorney to update your records for you.  If it is me you hire, prepare to pay at least $1,500 and quite possibly more depending on  how many years your have been remiss; or
  2. You can spend hours and hours of your valuable time researching both on the internet and in a law library to determine what is needed.  Then you can spend the time creating the forms and assembling the corporate record book; or
  3. You can spend $297.00 and purchase Corporate Veil Pro. Rob Northrup at Corporate Veil Pro  has done an outstanding job creating a clear, concise, step-by-step system for small entrepreneurial corporation owners. 

Corporate Veil Pro is an all in one product that will give you back your personal liability protection. 

The choice is yours, 1, 2, or 3.  I hope you choose No. 1 and show up at my law office but if I were you, it would be the best use of your time and money to go with number 3 and Corporate Veil Pro.

 

Consider it the Best Sleep Insurance

you ever purchased.

 

 

Quote   

"A countryman between two lawyers is like a fish between two cats."

     Benjamin Franklin

US author, diplomat, inventor, physicist, politician, & printer (1706 - 1790) 

 

 

 

 


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