Legal Counsel for Your Business

We are here to help with your basic business needs. Whether you have a corporation (Main Street, Inc.) or a company (Main Street LLC), you probably set it up for two reasons: for accounting/tax benefits, and to protect your personal assets from frivolous lawsuits. In order to best enjoy the personal liability protections, there are several recommendations. The goal is to treat your company as “a separate entity” apart from the owners by following “corporate formalities.” 

 This is very easy and inexpensive, but only a start. Here, you pick a unique name and tell the SoS how someone can contact a “Registered Agent.” The Agent is the first pitfall. If someone wanted to sue the company, they will usually send notice to this Registered Agent. If this agent cannot be found, there is a risk that the person suing could get default judgment (win without you knowing). 

 This document established clearly what authority everyone in the company’s leadership has. Where it gets important is: Can a Director sell property? Can an owner sell the ownership? And more.

If you want to sell the business or sell a property, such as a home that the company owns, buyers are going to require seeing the operating agreement. Also, if you want to buy a property with the company, most title companies are going to require the operating agreement to be reviewed.

 ALL companies and corporations that own something, or make $1,000, MUST register the “beneficial owner” with the US Treasury. Failing to do so can result in fines totaling $10,000 and jail time up to 2 years. 

Be sure you have a bank account used only for the business. Meaning, do not use a debit or credit card for your personal expenses ever. If you need money out of the company, transfer that money from the company to yourself, or write yourself a check, and then use the money for your personal expenses.

Tiresome, but highly recommended. Having annual meetings to elect managing members or directors, and vote on major decisions, is one of the corporate formalities.