If your business is owned by a single person, and does not have multiple owners or shareholders, do not fret – the majority of small businesses are single-owner businesses. Many single-owner businesses wonder whether they need to comply with the annual meeting, notice, and filing requirements. The answer is generally yes.
Complying with the annual requirements for single-owner businesses is especially important because it avoids the appearance that the entity is a “shell” company and that personal liability should be imposed on the individual owner.
Generally, the consequences of failing to comply with annual requirements can range from the following:
- Corporation or LLC can be subject to “piercing the corporate veil” for failing to adhere to the corporate formalities, meaning that the owners are vulnerable to personal liability
- Corporation or LLC can be suspended or otherwise penalized for not being in good standing with the State.
- The Secretary of State or Franchise Board can impose late fees, interest payments, penalties, and other monetary fines.
- The State can administratively dissolve the company for failing to comply with the legal requirements
Complying with the formalities does not need to be a headache. To get help for your company, drop us a line and we will be glad to help.
► MOBILE? Click HERE to Initiate Call Now
► ONLINE? Click HERE to Request Online
[title size=2]Top Business FAQs[/title]
- Can a Company Have Two Presidents?
- Can a Business Ban a Customer?
- Employer’s Guide to Responding to an Employee’s Unemployment Claim
- Is an Officer of a Corporation An Employee?
- Can a California Employer Ask Job Applicants to Disclose Criminal History?
- Multi-State Businesses: Which State’s Wage and Hour Laws Must be Followed?
- Thinking of Hiring an Influencer to Help Promote Your Business or its Products and Services? Here’s What Your Influencer Agreement Should Look Like:
- Thinking of Hiring a Freelancer? Tips to Protect Your Business When Using Freelancers
- Founders Agreements: A Comprehensive Guide
- Basics of Non-Disclosure Agreements
[title size=2]Latest Business Representations[/title]
- Los Angeles Tattoo Shop Hires Axis Legal Counsel in Shareholder Dispute
- Axis Hired by LA’s Leading Immersive Experience Entertainment Company
- AXIS Hired by New York Entertainment Company for Labor & Employment Matters
- International Beverage Manufacturer Hires AXIS for Expansion Efforts
- Axis Retained in LLC Dispute Dispute
- AXIS Hired to Represent Transportation Client in Commercial Dispute
- AXIS Hired to Dissolve and Distribute Assets of Internet Startup
- Axis Retained in LLC Dispute
- Axis Represents Client in Commercial Real Estate Dispute
- Axis Hired to Represent New Venture-Backed Online Services Startup
[title size=2]Latest News from Around the Web[/title]
No feed items found.