As the calendar turns toward year end, we all begin thinking of resolutions. From a legal standpoint, the most important resolutions are the corporate kind. Especially those that are essential to maintain the corporate veil.
What is the corporate veil?
The corporate veil insulates the personal assets of the owners of a business from claims against the business. In order to ensure that a company owner’s personal assets are protected, one must be able to show that the company exists and operates on its own and not as an alter ego of its owners. Without this shield, if a business has creditors, the creditors can proceed against the individual owners and their personal assets.