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Incorporating a Business E-mail
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Article Index
Incorporating a Business
Benefits of Incorporating
Right Corporate Structure
Steps to Incorporate
Where to Incorporate
Incorporation Help
Corporate Compliance
Building Corporate Staff
Re-Investing
Closing Your Corporation
State Level Resources
Legal Document Templates
Comments

Corporate Compliance


When you decide that you want to incorporate your business there is certain protocol you must abide by. This is what is called corporate compliance. You need corporate compliance in order to make sure that you are not being held liable for something because you did not adhere to the formalities of a corporation. It may seem like a lot of work, but if you do not then you as a sole individual will be held responsible for situations that normally the corporation on a whole would be responsible for.

To ensure that the courts recognize your company as a corporation you must do everything as required by the law to separate yourself from that of the business. This means having separated everything from bank accounts to tax records. You need to have proof to back this up such as corporation minute books to bylaws. If you do not adhere to corporate compliance then it is possible for someone to bypass the corporation and sue you personally, meaning that they could garner your personal assets.

Each state has different laws governing corporations and you need to be well aware of your state laws. Your state agency is the best person to go to for this information, unless you choose to use an Incorporation service which will have more information about the state in which you are incorporating in. Your compliance with these laws is the utmost importance and should be your number one concern in getting your business incorporated. Record keeping and accounts are your main priority to make sure that you don’t send up any red flags to the courts that you are not really a corporation.

The bank accounts of the corporation must be kept separate from the bank accounts of the shareholders. That means under no circumstances can you deposit your business funds into your personal checking account. This should be done before you file the incorporation papers so that you have everything set up according to the laws of your state.

At the launch of your corporation you should have everything in place as far as electing the board of directors and the officers within your corporation. This is the time that you can issue your corporate stock and begin the minute’s process. You need to set up the basic structure and talk about benefits such as medical, dental, 401K’s, vacation time, and any details that affect your employees directly. Have everyone there at the first meeting and have all paperwork ready for them to sign so that you can be organized and efficient.

For full compliance you need to have your minute’s book available and filled out. You want to make sure you have someone taking very specific minutes dealing with everyone who was present, what took place during the meeting, and most importantly you need to formally accept the copy of the Articles of Incorporation that the Secretary of State has sent to you. This is an important time for you, and you want to make sure everything is in place to limit your liability to only the corporation and not to yourself.



 
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