An Attorney's View of Corporate Records...
By Robert Kaufer
www.diyLawyer.net

In fifteen years of practicing law, I have only had one small business client come to me that actually had an updated corporate record book.  In my opinion, this is the number one area that an owner of a small business can lose their personal liability protection.

 Many entrepreneurs believe they just need to file their articles of corporation with the state and they are done with the paperwork.  Nothing can be further from the truth.  You don't necessarily need this paperwork for your day to day business activities but you will most assuredly need it if you are sued.

If an attorney brings suit against your company, the first thing they are going to try to do is pierce through the corporation to get at the owner's personal assets.  They will want to see that you had kept records contemporaneously with the company's actions.

 Why do you have to do it? 

Because the owner is not the corporation and the corporation is not the owner. 

A corporation does nothing on its own.  It must be directed and that direction comes from the Directors and Officers.  In many cases with a small business, the Directors and Officers are the owners too and if there are not written directions memorialized in the corporate record book then it is not the corporation acting.  It is the owner and courts have ruled that in these cases the corporation is a sham and is really the alter ego of the owner.

 Corporate Veil Pro will help you get the protection you need.  I couldn't stress more of how important this product will be for you to protect all that you have worked so hard to earn.  It will help you fill in the missing pieces. 

 For more information on what you need to protect yourself with the law you can always visit me at www.DIYlawyer.net . 

My goal is to help people answer a simple question: "Should you hire an attorney or should you DoItYourself?"