Lose of Limited Liability Company Protection
One of the main attractions of forming a corporation is the liability protection a corporation provides its shareholders. Liabilities of the corporation are not liabilites of the corporation unless the shareholders sign a personal guarantee where they agree to be liable for certain corporate liabilites or the corporate protection is lost.
How can the corporate protection be lost? By not following the limited liability formalities. If the procedures and requirements set out by statute to create and govern the limited liability comapny are not followed. You must be thouroughly aware of the corporate requirements or seek legal advice to help you comply. You should maintain a limited liability book that contains all of the dcouments relating to the creation and governance of the limited liability company which will always go a long ways towards establishing a defense to an attempt to strip away your limited liability protection.
If you do not have a limited liability company book, haven't done anything to the limited liability company book since the corporation was created or just are not sure if your limited liability company has follwed all of the corporate formalities necessary to keep the limited liability company protection, contact NLF today to have your limited liability book reviewed.
NLF Limited Liability Book Review and Update