Company Structure

1. If you are incorporated, you must adhere to your bylaws

• If annual meetings are required, you must have minutes to verify that meetings were held
• If separate meetings are required for Board of Directors and Shareholders, you must have minutes to verify that separate meetings were held
• Assets used by the company must be owned by the company (tools, laptops or other computers, etc…)

2. If you are incorporated, you must make sure you do not allow the court to pierce your limited liability for:

• Undercapitalization
• Fraud
• Debt structure
• Commingling of funds and assets

3. If you set up multiple entities to limit liability, the four factors that can that can lead the court to pierce your limited liability under the “Alter Ego Theory” are:

• Failure to maintain adequate corporate records
• Commingling of funds
• Undercapitalization
• One corporation treating the assets of another corporation as its own

4. If you remove money other than salary, make sure you consult your CPA and Attorney to be sure you are in compliance with corporate bylaws and regulations