How to Maintain Adequate Corporate Structure
You’ve likely heard online from some keyboard warrior or a CPA or perhaps even from an attorney that why file an LLC and manage a company that way? If it’s just going to get invalidated anyway, can’t a good litigation attorney just Pierce and LLC? That advice is just wrong. It’s not true. LLCs are incredibly hard to pierce if they are maintained correctly. The problem is that most people, your average Joe Plumber that’s running their company. Doesn’t do the things that are necessary to maintain the adequate corporate structure. So what are the things that you need to keep in mind? The first thing you need to keep in mind is that you must maintain records and accounting of your company. What is the money that’s coming in? What is the money that’s being spent? You need to run everything through a bank account for your company. So has the appearance of being a legitimate separate entity from yourself. You cannot treat the money of the company as it were on people’s name. This means that in accounting for your company if you ever need to take money out, you must keep an accounting of it as a dividend from the company. If you fail to do these steps, a corporation can get pierced. If the corporation is pierced it provides no protection. However, if you are diligent in maintaining adequate records of the company you will be protected. My name is Scott Smith, I’m an Asset Protection Attorney from Austin, Texas. I wanna help protect you.