Entries tagged “Limited Liability Companies”
Insight Michael Moradzadeh · March 19, 2010
Forming an LLC or a corporation is an important first step to achieving tax benefits and protection from liability. In order to preserve these important benefits, however, it is very important that your company is maintained properly. Otherwise, you run the risk that the separate nature of your company will be ignored by the IRS or a court of law. While there is no substitution for the sound advice of experienced counsel, a few simple steps will help ensure that you reap the benefits of your LLC or corporation for as long as they exist. The minimum requirements for maintaining corporations and LLCs is that they must: 1) maintain adequate capitalization; 2) keep clean financial and legal records; and 3) be treated as separate and distinct from its owners.