Most small business owners understand that creating a separate corporate identity for their business is important to ensure that their personal finances are not subject to any creditors of the business. This is done by filing papers with the Secretary of State. But, did you know business owners can lose “corporate shield”, leaving them on the hook for the business’ debts?
Protect your corporate shield
I have seen several business owners who have filed their initial papers with the state to establish their business and then never file anything with the state after that. This is a disastrous move; you may as well have not filed anything in the first place. If a corporation does not file its yearly fees with the state, they may be subject to suspension from its ability to do business in North Carolina. The big problem is, subsequently, that you lose your corporate protections under a suspension.
If a creditor, employee, vendor, or some other entity sues your company for actions that took place while your company did not have actual, valid corporate status with the state, that Plaintiff may be able to come after the business owner’s personal assets. Additionally, the small business may not be able to file suit in North Carolina without an active corporate status.
Pay your yearly taxes, business owners, or risk losing protection from the courts and risk losing your corporate shield.
We can help.
Maginnis Law, PLLC represents small businesses in litigation disputes in Raleigh, Cary, Apex, and the rest of the Triangle area. You may retain our firm as general counsel for your company. You can retain Maginnis Law as your civil attorney for all matters in return for one monthly fee. This gives business owners some certainty as to the bill; a certainty you don’t get from most law firms in the Raleigh or the rest of Wake County. You can reach the firm at (919) 526-0450 or through our contact page.