We’ve talked a lot about the protection of personal assets that a corporate entity provides you.  However, if you fail to adhere to the formalities of a corporation, then the court may still hold you personally responsible and liable at the end of a lawsuit.

 You must do everything required by law to ensure the court can see that you’ve separated your personal identity from that of the business.  That means separate bank accounts, recording meetings with minutes, and more.

 If you haven’t met the standard that the law set forth for corporate owners, then it’s possible for a person to sue you and garner your personal assets.  This is known as piercing the corporate veil.

 Every state has different requirements for legal running of a corporation, so make sure you contact your state agency to ensure you know what needs to be done to keep you in compliance with the law.