Incorporate Your Business?

If you are currently in business or plan on starting a business you should considering using a Limited Liability Company (LLC) or Corporation for legal purposes. If you have a properly formed corporation or LLC and operate it correctly, you will protect yourself from personal liability should someone sue the business and you lose in that lawsuit.  If you do not incorporate and the business is sued, you stand to lose all of your personal assets and possessions if the lawsuit goes against you.

Even if incorporated (or you have an LLC), the legal protection will only continue if you:
                1. Sufficiently capitalize the entity
                2. Comply with all income and other tax filing requirements
                3. Do not co-mingle your personal assets with those of the entity
                4. Do not have the corporation pay your personal expenses or mix up your personal receipts
                    and disbursements with those of the corporation.
                5. Conduct all required annual meetings and keep minutes.
              
Though these procedures seem simple, if you fail to follow them, attorneys regularly pierce the corporate veil in lawsuits and get at the owners and shareholders personal assets. You should seek legal advice to make certain you are running your LLC or Corporation correctly to maintain its liability protection for you the shareholder.