March 15th, 2014 By Virtual Paralegal Services

In order to maintain the limited liability protection afforded legal entities organized under the laws of a jurisdiction, entities must follow certain legal requirements pursuant to the laws of its state of formation. Failure to follow these legal requirements may cause a court to “pierce the corporate veil” by treating the obligations and liabilities of the entity as the obligation and liabilities of its stockholders or members. Many times this results from failure to do any of the following:

  • Supply it with Adequate Resources
  • Observe Corporate Formalities such as Holding Annual
  • Meetings of Stockholders and Directors
  • Keep Separate Record Books Of the Corporation
  • Distinguish Corporate Assets From Personal Assets
  • Issue Stock

To learn more about the importance of annual maintenance, view the Importance of Annual Maintenance

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