Lewis Business & Estate Planning, APC has helped hundreds of businesses comply with corporate formalities, thereby helping preclude the IRS and creditors from claiming the corporation is not genuine.
Among other things, this goal is accomplished through maintaining corporate minutes of business meetings. A corporation is required to keep these, and LLCs should (although they are not necessarily required to by law).
Maintaining corporate formalities are important, for if they are not followed, creditors will argue the corporation was not really genuine and the corporation should be disregarded, such that corporate debt and liabilities should be satisfied with the shareholders’ personal assets. The IRS will argue similarly. The phrase for this is “piercing the corporate veil.” Factors for whether the veil is pierced include whether the shareholders respected the business as separate from themselves, and whether they conducted regular meetings, and maintained corporate minutes. Lewis Business & Estate Planning, APC protects clients against the IRS and creditors from these veil-piercing arguments.