In advising hundreds of closely held companies over the years, one of the things I often recommend to clients is a corporate clean up. What’s a corporate cleanup? It’s a term used to describe the process of taking a deep dive into a company’s organization or incorporation documents, bylaws or operating agreement, and other records and contracts and doing somewhat of an internal audit. It’s a crucial step if you are looking to sell your business, or simply want to engage in best practices to be ready for an audit, insure against shareholder disputes and generally get your house in order.
Business owners are too busy running their business, especially when first starting out – they are focusing on strategy, marketing, developing a product or providing a service. They often don’t have the resources to make sure these items are in place, or they simply slip through the cracks.
One of the most important reasons for conducting business within a legal entity, such as a corporation or LLC, is to maintain limited liability. One of the keys of maintaining the limited liability and avoiding the piercing of the corporate veil is keeping the corporate formalities in place.
Every company should have the following in place and kept among the records:
It’s important to maintain these documents so that the veil separating a corporation and its shareholders stays in place and protects the company’s owners from being liable for the company’s actions.
If you would like to assess whether your company has what it takes in place, or discuss whether you need a corporate clean up, please contact us.
The business and employment attorneys of Dalton & Tomich take your business just as seriously as you do. Attorneys Zana Tomich and Noel Sterett are trusted by closely held family businesses and others across Michigan and Northern Illinois as invaluable partners and counselors. We guarantee all your calls and emails will be returned within one business day so you can focus on what you do best: running your business.
Having worked with Zana for 10 years, I can attest to her professionalism, her pragmatism, and most importantly, her integrity. I always get sound, thoughtful advice and guidance. From routine filings & updates to the highly unexpected, Zana’s there to help, always responding quickly and […]Read More
We highly recommend Dalton & Tomich! As a start-up firm that has rapidly grown across the country in under 5 years, Dalton & Tomich has been integral to our sound, credible, and excellent in standard infrastructure. As we’ve scaled, Zana has been right by our […]Read More
As a professional photographer in the wedding industry, reliable communication is very important to me. Noel was very knowledgeable and quick to respond to all of my questions and not just that, he also gave me suggestions when reviewing and updating my contract. The entire […]Read More
Zana’s expert guidance has helped us to move forward with clarity and confidence in our business endeavors. She helped us create a new business entity, and a few years later to navigate a tricky buyout—all with a clear path forward for business growth. Her calm […]Read More
Noel’s guidance was much appreciated when redrafting my client contract. He was very professional, respectful of my time and potential costs, and was sincere with his advice. I trusted that he had the highest good for my business in mind. I will seek out his […]Read More
Zana’s expertise in employee law has helped us refine and build a stronger operations and hiring strategy at my company. As a business owner of a small and fast growing company, I very much appreciate Zana’s ability to always step into any situation quickly and […]Read More