Can I Lose My Liability Protection if I Ignore Business Formalities?
FREQUENTLY ASKED QUESTIONS
Short Answer: Potentially.
Why It Matters: Creating an LLC or corporation is only the beginning. Operate it as a separate business by maintaining separate finances, signing in the company's name, documenting major decisions, and following sound governance practices.
Common Mistakes: Mixing business and personal funds; signing personally; poor records.
Michelle's BottomLine: How you operate your business matters just as much as how you formed it.