• A Little Corporate Housekeeping Can Help Avoid a Big Mess
  • August 9, 2016 | Author: Stephen P. Katz
  • Law Firm: Peckar & Abramson A Professional Corporation - New York Office
  • Now that tax season is over, and we’ve finally caught a breath after fi ling our tax returns in a timely fashion, it is a good time to consider some corporate housekeeping tips that will help keep intact the limitation of liability that corporate entities provide to their shareholders. While not necessarily the first item on the agenda of an executive team’s hectic schedule, the failure to perform simple corporate housekeeping and follow certain corporate formalities can have a serious negative impact on the ability of a corporation to shield its shareholders from liabilities. Creditors can use the failure to follow corporate formalities as grounds to “pierce the corporate veil” and look to the assets of the shareholders of the corporation to satisfy the debts of the corporation.