- Corporate Law
- Creditors Rights
- Estate Planning
- Incorporation Fees
- Business Entities
- Business Litigation
- Corporations, types of
- LLC's in Mass
- Trademark law
- Service marks
- Piercing the corporate
- corporate compliance
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
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
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.