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& Startups
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- LLC's in Mass
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- Piercing the corporate veil
- corporate compliance

(617) 479-4300

Massachusetts Attorney

Massachusetts Lawyer

Corporations and Asset Protection

You formed a corporation to benefit from the asset protection it affords you personally. So you're protected right? Maybe not. Here is a list of some of the things alone or in combination that can strip you of asset protection and result in "piercing the veil" of your corporation.

1. Failure to have regular board of directors' meetings.
2. Failure to have annual shareholders' meetings.
3. Failure to issue the corporate stock or maintain the stockholders' ledger (in Massachusetts the incorporator is personally liable for all corporate debts until stock has been issued!)
4. Failure to maintain up-to-date corporate records.
5. Failure to have the required initial organizational meeting.
6. Failure to adopt corporate by-laws.
7. Failure to maintain proper accounting records including:
(a) setting up a corporate bank account; and
(b) not co-mingling your personal and business accounts (ie. Keep them separate)
8. Failure to advertise and serve notice that the business was operating as a corporation ie., hold yourself out as a corporation( letterheads,etc. and always sign documents as the corporate officer, not just personally)
9. Failure to transfer some assets into the corporation. (ie. Underfunding the corporation)
10. Failure to get the proper state and local business licenses in the name of the corporation.
11. Failure to file your annual Massachusetts state report forms.

Corporate compliance is crucial to maintaining your corporation. Click here to see our schedule of startup, compliance and incorporation legal fees. Please feel free to contact us with any business law matters you may have.