Issue link: http://viewer.e-digitaledition.com/i/862068
PREVENTION AN OUNCE OF prevention can be worth a pound of cure. That statement is especia lly true when it comes to your corpora- tion. Corporations in Ohio are required to follow some basic formalities: having an annual shareholder meeting, a meeting of the Boa rd of Directors, a nd entering meeting minutes into corporate records. Your corporation can prevent major problems in the future by adhering to these legal requirements. Apart from being required by law, there are many other reasons to conduct meetings and keep minutes up to date. One major benefit of a corporation is that it protects personal assets from corporate liabilities. Simply establishing a corporation is not enough to protect your personal assets; the corporation must a lso be conducting business as a corporation. If not, a third party can try to "pierce the corporate veil," which allows a third party to hold you individua lly liable. One sure way to help prevent this is by holding the required annua l meetings and keeping your minutes books up to date. Apart from concerns about "piercing the veil," following corporate formalities provides many other benefits. Accurate minutes provide a well-documented record of what took place at the corporate meetings, should a concern a rise. A lso, lenders or purchasers of a business will often require your minutes book be up to date and will review it in making determinations of whether or not to lend or buy. W hile Ohio LLCs a re not required to obser ve the sa me forma lities as a corporation, it is still highly recommended. It ca n provide a ll the benefits described above, including a llowing the LLC to provide the liabilit y protection it is designed to. Shareholders should take the steps now to protect themselves and their corporation in the future. NOTE: This general summary of the law should not be used to solve individua l problems since slight changes in the fact situation may require a materia l variance in the applicable lega l advice. Lucas Murray is an attorney with the law firm of Krugliak, Wilkins, G rižths & Dougherty Co., LPA , in Canton, Ohio. ■ BY LUCAS W. MURRAY, ESQ. AN OUNCE OF 2 2❱❱❱❱❱ L E G A Lš E A S E