How Can You Protect Yourself If People Try To “Pierce” Your Corporation’s Veil Of Protection?

Actually, this is fairly easy.  First, always, absolutely always follow the corporate forms your lawyer told you to do when you started the business. This means that you should hold annual meetings, take minutes, record votes by the Board of Directors, etc etc.  Do them all. Keep written records of them all. Even if there is only 1 shareholder, 1 member of the Board of Directors, 1 employee be sure to do them all.  If you don’t you will be in big trouble.  It also helps to keep the company’s finances separate from your personal finances.  That includes separate Taxpayer Identification numbers.  Be sure to file separate tax returns too.

If you are not sure what to do, check with a corporate lawyer.  Don’t ask your accountant–ask the lawyer who helped you set up the company.  Don’t have one because your accountant did it?  Find one.  They are very useful.

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