Keeping Your Corporate Machine Running Smoothly

There are several parts to maintaining a corporation throughout the year in order to remain in compliance with the state.  Maintaining proper corporate documents is essential to running a successful corporation. Without it, the corporate veil may be pierced and the shareholders may be personally liable.  The corporate veil is the barrier that separates the corporate entity from the people who own the corporation.  This is what allows the corporation to be its own legal entity capable of buying property, suing, and being sued.  If this veil is pierced, then the separation between the corporate entity and the owners is destroyed and the individual owners of a corporation can be held responsible for all of the corporate liabilities.  The last thing any corporate shareholder wants is to be personally responsible for the liabilities, losses, and debts of a corporation. Continue reading