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Oct 12, 2008 
Hi,
The “corporate veil” is an important, and often misunderstood, concept for many small business owners…
Corporations are started for a number of reasons…
One of their products explodes, someone trips in their building and is disabled, an employee sues them over something ridiculous and claims millions in emotional damages. In today’s lawsuit-happy culture, it could be anything.
Disaster…
(but maybe not the end of the world…)
As long as everything is nice and proper with this corporation, the worst that will happen is that the judge will take away the assets of the corporation and give them to the person who filed the suit. This sounds pretty terrible but it much better than what happens in the case where the corporate records are not in good shape…
With good records and procedures, their personal assets are safe behind the corporate veil…
The corporate veil is not automatic…you need to follow the “corporate rules”…With no records or poor records, their personal assets like their house, their savings, their stuff are easy pickings for the vultures…
They call this “piercing the Corporate Veil” and what it means is the judge takes everything your corporation has, then he tosses your corporation in the rubbish heap and connfiscates everything the owners have as well… property, savings, asset accounts, automobiles, your stuff…
These sue-happy attorneys know that small corporations usually do not maintain large amounts of cash and valuables inside the corporation. They know that the real money is in the bank accounts of the owners and the only way to get to the loot is to try to “pierce the corporate veil” in court. So almost without fail, they demand these records and they go over them with a fine-toothed comb…
Looking for any “proof” that you weren’t dotting your i’s and crossing your t’s like a “real corporation” is supposed to.
I am the owner of two corporations, and I met one of these unfortunate businessmen who was having his corporate veil pierced, and when he told me his wretched story on a plane to Atlanta from New York, I took notes and made an Action Plan.
In response, I wrote a clear, concise, step-by-step guide for small business owners to help them understand these requirements and also to bring them up-to-date with the minimum amount of time and effort, because one thing never changes—business owners never have enough time. Don’t let that be your excuse for losing your corporate veil of protection. You can find more information on this system at my CorporateVeil Pro website…
PS: The above assumes you are operating an honest business, if you are ripping people off or committing fraud, then you deserve to have your personal stuff confiscated. The vast, and I mean vast in the largest sense of the word, percentage of small businessmen and women I meet are honest, hard-working, and want to do the right thing… I hope you are one of the “good guys”…
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(36 comments)
• Oct 12, 2008 @11:17 pm
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