Does Your Business Need a Legal Checkup?

 
Does your business need a legal checkup? As previously discussed, the nearly universal rule is that it is almost always less expensive to resolve a legal issue early on – such as through a proper contract prepared with professional assistance – rather than trying to fix the issue later, such as through litigation.

Unfortunately, many businesses do not seek legal advice until it is too late for an easy resolution. If your company does not have an in-house lawyer, or if it does not have a regular outside attorney it regularly consults regarding its legal affairs, it may be time for a legal checkup.
 
Here are a few of the items that should be considered during a legal checkup:
 
  • Has your business properly maintained its registration with the secretary of state or other authorities? It is surprising how many companies fail to maintain their annual registration and have been administratively dissolved. The result? No corporate shield against liabilities. Most of the time, reinstatement is possible, but you will need to act quickly.
  • Does your business maintain proper corporate or company records? Does it have corporate minutes, minutes of shareholders' meetings, or resolutions in lieu of meetings? Many businesses fail to maintain these basic documents, which again places the corporate liability shield at risk.

 

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