Corporate Governance and Maintenance
Corporate Governance and Maintenance – Companies with a limited liability structure (LLCs, Corporations, Limited Partnerships) must strictly respect the “corporate form”. This requires a formal process for governing the company, management of finances separate from the individual owners, and clear documentation of decisions.
The required documents vary by entity type but typically include formation documents, meeting minutes, and financial statements. It is important to note that these laws apply to all structures offering limited liability, even if there is only one person serving as owner and management.
If the formalities are not maintained, the liability protection offered by these entities could be tossed out in the case of an audit or lawsuit.