As we approach the end of 2020, business owners are likely preparing to address the various year-end business issues and planning for the new year. However, any business owners that operate their business under a Pennsylvania corporation should also take care to ensure that they attended to the required corporate formalities for their entity before the calendar turns to 2021.
One of the principal reasons that individuals operate their businesses under a corporation is to shield their personal assets from exposure to liability resulting from such businesses. If a business owner fails to comply with certain corporate formalities, such as re-electing the officers and directors of the corporation on an annual basis, however, the business owner’s personal assets may be exposed to liability arising out of the business under a “piercing the corporate veil” argument.
The professionals in our Business & Finance Department regularly assist shareholders with their efforts to comply with these corporate requirements each year. Shareholders who are interested in learning more about these services should contact Paul T. Rushton, the Chair of our Firm’s Business & Finance Department, at firstname.lastname@example.org or 570-826-5623. We can help you address these important requirements effectively and efficiently!