It wasn’t that long ago that we were being bombarded with news updates about the horrific Deepwater Horizon oil spill (a.k.a. BP oil disaster) that occurred back in April of 2010. In January 2011 the Whitehouse oil commission released a report wherein they blamed BP and its partners for a series of cost-cutting decisions as contributing to this catastrophic accident.
One of the so called cost-cutting decisions was to not use a diagnostic tool to test the strength of the cement. What was the cost of this tool? The cost was a tiny fraction of what they lost in oil, paid for cleanup, what they have paid to settlements and what they will pay for future settlements. That’s right- a tiny fraction!
How does this relate to you? Do you have a Corporation but no Corporate Record Book? It’s all too common these days for people to want to start a Corporation and put off obtaining a Corporate Record Book to cut startup costs, figuring that they’ll get to it later or they think they can get by without one.
About 60% of closely held Corporations are in jeopardy of having their corporate veil pierced because they haven't tended to the formalities of issuing stock or have not maintained corporate records.
A couple of years ago a gentleman called to inquire about the cost of setting up a Corporation in Nevada. He mentioned that he did indeed want a Corporate Record Book with his order. He said he had recently lost a lawsuit with a Corporation he had in another state that wiped him out. He stated that the court ruled against him because he had no Corporate Record Book and had not issued stock. He vowed to do it right this time.
Here again is another cost cutting example that cost many times more in the long run. What is the cost of a Corporate Record Book? It varies depending on where you purchase it, the quality, etc. but it most definitely was a small fraction of what this gentleman lost. Typically they are less than one hundred dollars.
Fortunately, Nevada offers greater protection for Corporations, but if you cannot prove you're a real Corporation with shareholders and not just an alter ego of yourself, your assets could be at risk.
Find out more about American Corporate Enterprises by visiting our website at http://www.americancorpenterprises.com.At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.
Friday, December 9, 2011
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