The Corporate Armory Bulletin: Preparing You for Battle
The Corporate Armory Bulletin is an ongoing series of tips, news releases and inside information from Incorporation 911. Each issue is especially designed with your small business entity, professional practice or investment company vehicle in mind. The Corporate Armory Bulletin's purpose and mission is to give you the tools you'll need to build and storehouse your corporate defense systems - before you need them. Pro-action is vitally important.
When you filed your corporate entity with the state, the state created it with separate legal existence, a personality of its own, and limited liability. But after that, your actions can jeopardize that separate legal status. Or, you can enhance and fortify it. Bullet-proofing your corporate shield is The Corporate Armory Bulletin's prime directive.
Risking Tax Benefits and Limited Liability
Your small business corporation, limited liability company (LLC), limited partnership (LP) or other business organization is bound by the same rules of corporate governance as the big companies and firms. Courts - and the IRS - are crystal clear on this subject: If you neglect to treat your company as a separate legal entity, they will too. They will set it aside and impute personal liability to you and disallow tax deductions. They use terms like "alter ego", "nominee", "self dealing", and "failure to observe corporate formalities" to do just that.
Litagators know this. They also assume that you neglect the details of good corporate governance, like holding meetings, adopting resolutions and recording these events in corporate minutes. They know that most people are ignorant, intimidated, or just too busy to tend to the formalities. It is the easiest thing for them to prove, so that's exactly what they focus on when they launch their attack on you and your company.
Your personal battle starts with a lawsuit, judgment, lien, seizure, bankruptcy, divorce, or, God forbid...a revenuer's Notice of Examination. Among the first salvos launched by counsel for the plaintiff, or the Revenue Agent: A subpoena duces tecum or summons for copies of your formal corporate minutes and records. That's the way it works. You'd better have them in good order. Or else...YOU LOSE.
Defense Posturing
On the other hand, you could build an arsenal of defense weapons to train on your adversary should you need them. You want to pull the rug out from under litigants...and fast. No one here wants to mercilessly attack innocent claimants; however, if you are the target of a frivolous lawsuit, meritless shakedown or other unjustified legal action - these things happen daily in the good old USA - you'll need the most effective affirmative defenses, advantages and options at your immediate disposal. As they say, a good offense is the best defense.
The Corporate Armory Bulletin will help you do just that.
What you'll get with each issue of The Corporate Armory Bulletin:
One (1) concise page only;
focused on one (1) important subject; with
essential principals and insight; to
the best practices of corporate governance;
intelligence, news releases, inside information;
common sense applications and solutions; to
help you build and intensify your corporate veil, shield, armor and defenses; while
saving you hundreds, even thousands, of dollars in fees, time and grief.
My promise to you: I will not waste your time.
Get after it. Start today to simplify, streamline and systematize your corporate formality observance practices. Use the form below to start your FREE subscription to The Corporate Armory Bulletin.
P.S. I comb through law reviews, professional publications, trade journals and legal reference materials to find time- and money-saving nuggets you need to maintain your good corporate legal status. Then I present the meat to you in a non-legalese, common sense, concise form: The Corporate Armory Bulletin. You can check out my qualifications at About Dan.
P.P.S. If you have a question or comment, or would like to see more about a particular topic, please send your request to me using this form.
