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Don’t Risk Losing Your Corporate Shield

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 that corporate status can be lost, leaving the business owner on the hook for the business’ debts?

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 with that is, that you lose your corporate protections during the time that you are suspended.

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.

Maginnis Law, PLLC represents small businesses in litigation disputes in Raleigh, Cary, Apex, and the rest of the Triangle area. The firm also can be retained as general counsel for your company. Instead of paying an in-house lawyer to handle all matters, 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. Contact the firm at 919.526.0450 to discuss your business trial lawyer needs.