Business Owners, Your Home Is Vulnerable
Forgetting to issue shares, comingling funds, or not keeping Minutes at a shareholder meeting, should not cost you your house, but it could if you do not take action.
Many business owners don't realize that the “Limited Liability” that comes with a corporation (or an LLC) is conditional.
The conditions, called corporate formalities, and are a list of behaviors every business entity must follow to maintain the “corporate veil” that separates the business's assets from those of the business owner.
Violating these formalities is as simple as forgetting to duly elect the president or commingling funds without a notarized loan. In the eyes of the courts, such a violation may be enough reason to remove the limited liability that separates you from your business.
Failing to follow corporate formalities could mean that your personal possessions are vulnerable to asset forfeiture.
As of 2016, an estimated 72% of US businesses are non-compliant with corporate formalities.
Corporate Formalities Apply If Your Business Is:
- · A single shareholder corporation
- · A multi shareholder corporation
- · A single member LLC
- · A multi member LLC
- · A series LLC
If your business is in one of these categories, you should immediately check to see if you are in compliance with all corporate formalities in your state. Missing one could leave your personal property vulnerable to seizure by the IRS or debt collectors.
Check Your Compliance [link to: Michael's scary list of all the corporate formalities an LLC or corporation needs to follow.]
The Legal Book and Seal Solution
LB&S is a program designed by business law attorneys to protect your personal assets against business debts and fines that try to follow you home.
To assure your business is complaint with all corporate formalities, use Legal Book and Seal.
LB&S guides you through the process of reinforcing the corporate veil between your personal property and the assets of your business. It typically takes less than an hour to set up, and as soon as you hit “submit,” we are working to guard your personal assets against any attempt to seize them due to noncompliance with corporate formalitie
Legal Book and Seal is offering a 30 day free trial exclusively for Facebook users. Sign up today and see how easy it is to protect your personal property with LB&S.
If you try out LB&S decide to keep it, the program is only $499/year.
It's the cheapest insurance you'll ever buy.
About Legal Book & Seal
LB&S is a software service that protects your personal property by bringing you into compliance with corporate formalities. LB&S was designed by attorneys specifically for registered agents, corporate secretaries, lawyers and business owners responsible for maintaining the corporate formalities of a company. LB&S is more than just peace of mind, it is also a place to store important business documents, information on shareholders, LLC Members, directors, stock ownership data, as well as outstanding warrants and options.
Learn More About Legal Book and Seal