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‘How to Ask the Right Questions When Starting a Business’: An excerpt from BGD Magazine

I am proud to be a part of BGD Magazine’s first issue which focuses on “Getting Deals Done.” In “Emerging Business: How to Ask the Right Questions When Starting a Business,” Christopher W.D. Jones and I have laid out important questions to be considered before starting a business. Read the excerpt below regarding the importance of corporate formalities:

Once your business is formed, it is important to protect yourself from potential pitfalls. Following corporate formalities will help ensure that you properly maintain your business entity and the limited liability protection your entity type offers. Failure to follow corporate formalities can lead to personal liability for civil judgments or debts against the business.

Corporate formalities include tasks such as filing biennial business entity reports with the Secretary of State, holding annual meetings, and holding yourself out to be doing business as a company with limited liability. It is also important to treat the company as a separate financial entity by using separate accounts, segregating funds, and dealing at arms-length with customers and contractors.

To learn more about Leslie M. Smith and her practice, visit her profile.

  • Partner

    Leslie M. Smith is Co-Chair of the firm's Women's Forum and a member of the Business Services Department, where she concentrates her practice in finance, corporate law and real estate. In her finance practice, Leslie often ...

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