Required Corporate Formalities

Most people change their business form to that of a Corporation to give them the umbrella of personal immunity. What do you need to do if you want to keep that umbrella? Contrary to what is a common thought that all you need to do is the incorporation. Far from the truth.

The State of Illinois and the Illinois Supreme Court have made it clear that you also need to maintain the "Corporate formalities." What are the basic corporate formalities? Several are paying the State of Illinois the annual franchise fee, keep and maintain a "Corporate Bank," sign all official business papers in a proper corporate manner. A Corporate Book is a type of loose-leg book containing the incorporation papers, stock ledger and stock certificates, annual meeting minutes of the Shareholders and Board of Directors, and others.

What happens if you fail to comply with these corporate formalities? The answer is that you lose that umbrella of protection to shield you from personal liability.

If you have not complied with these legal requirements, then do so before it is too late. When you have a corporation, there comes with it the cost of compliance. This is the cost of having a business.

Our office reviews your compliance and can set up an appointment for that review in our Loop or St. Charles office by calling (312) 236-5582, ask for Burton A. Brown.

Protect yourself and your assets.