In advising hundreds of closely held companies over the years, one of the things I often recommend to clients is a corporate clean up. What’s a corporate cleanup? It’s a term used to describe the process of taking a deep dive into a company’s organization or incorporation documents, bylaws or operating agreement, and other records and contracts and doing somewhat of an internal audit.
Business owners are too busy running their business, especially when first starting out – they are focusing on strategy, marketing, developing a product or providing a service. They often don’t have the resources to make sure these items are in place, or they simply slip through the cracks.
One of the most important reasons for conducting business within a legal entity, such as a corporation or LLC, is to maintain limited liability. One of the keys of maintaining the limited liability and avoiding the piercing of the corporate veil is keeping the corporate formalities in place.
Every company should have the following in place and kept among the records:
It’s important to maintain these documents so that the veil separating a corporation and its shareholders stays in place and protects the company’s owners from being liable for the company’s actions.
If you would like to assess whether your company has what it takes in place, or discuss whether you need a corporate clean up, please contact me.
The attorneys of Dalton & Tomich, PLC have the experience and the knowledge to work with you to develop a legal solution that helps accomplish your goals. Our collaborative approach has helped leaders like you grow businesses and banks, develop and expand churches, and build nonprofit organizations nationwide.
In my role as Administrative Bishop for the Church of God, quite often we are faced with issues that involve local governments and municipalities. Many of these issues that arise in dealing with entities are land use related. I have found Dalton & Tomich’s experience and expertise in this area to be a valuable resource and asset in every situation.
Never one time during a year-long litigation process did Dalton & Tomich demonstrate anything other than Christ-like professionalism. They managed the legal details, while we continued to do church. How they managed themselves, managed our case, and represented our church set the table for me and our church to be where we are today.
Dalton & Tomich’s expertise and experience helped us through a very difficult legal journey, ultimately achieving a favorable outcome. Their personal interest in helping us went “above and beyond” just the call of duty.