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National City: Should You Incorporate Your Business? – Accountability

In National City, there are many business entities which are not incorporated. Our law firm of Law Office of Scott C. Soady, A Professional Corporation, LLP can handle the incorporation of your business and also assist with the legal requirements for your corporation to remain in good standing. A corporation can be part of an estate plan. Please feel free to e mail us or come in for an appointment to discuss your business succession planning as well as incorporating your business.

At or near the top of the list of characteristics favoring the corporate structure is the fact that, since the corporation is treated as a legal “person” separate from the people who own and run it, the shareholders as a rule are not personally liable for the corporation’s debts. Instead, their risk is confined to their investment in the company. To every rule there is an exception, however, and here the exception has the colorful legal name of “piercing the corporate veil.” If the owners do not comply with the statutory requirements for running a corporation, or if they blur the lines too much between corporate and personal finances, the legal fiction of the corporation as a separate entity is ignored and the owners are on the hook for the corporation’s losses.

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