How to Maintain the Records and Accounting of a Company

How to Maintain the Records and Accounting of a Company

Why file an LLC and manage your company that way if it’s just going to get invalidated anyway? Can’t a good litigation attorney just pierce an 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 an 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 it has the appearance of being a legitimate, separate entity from yourself. You cannot treat the money of the company as if it were your own piggy bank. This means that in the accounting of 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, the corporation can get pierced. If the corporation is pierced, it provides no protection. However, if you were diligent in maintaining adequate records of the company, you will be protected. My name is Scott Smith. I’m an asset protection attorney out of Austin, Texas. I want to help protect you.

Scott Royal Smith is an asset protection attorney and long-time real estate investor. He's on a mission to help fellow investors free their time, protect their assets, and create lasting wealth.

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