Gaizer.com Tips for Business Start-ups

Maintaining Corporate Identity

It is important to separate the identity of the corporation from its owners. This will help you protect your limited liability status. Ensure that you:

• Make all annual filings with the Secretary of State.
• Operate the company under its name, making sure that the people doing business with your company know that the company is a corporation and that they are not doing business with you.
• Avoid giving personal guarantees as much as possible. Documents signed by officers of the corporation should clearly state that it is done on behalf of the corporation without giving a personal guarantee.
• Treat the company as a separate entity. Company payments need to be classified as loans, compensation, dividends, loan repayments, or capital contributions.
• Receive from the company a note, should you decide to lend money to your company.
• Confer with your consultant or plan administrator annually if you have a pension plan, as there may be changes in the laws or regulations.
• Have a written contract between an owner-employee and the company. The company’s minutes should reflect the adoption of the contract.
• Keep any leases involving the owner and the company (such as the leasing of property) favorable to the company, or at arms’ length to the owner.
• Document all intercompany relationships and dealings if you own multiple companies.

This is by no means a complete list, make sure to check with your legal professional for issues pertaining to your company