Annual Requirements to maintain limited liability

A corporation or limited liability company major advantage is that the shareholders, members or owners generally are not personally liable for debts of the corporation or LLC. One exception is that you must kept the formalities of the entity to minimize personal liablility for the owners. On a yearly basis the entity must file an annual report with the State, must have a meeting of the Directors and shareholders, file taxes, maintain a principal office, file the Beneficial ownership information report (new as of January 1, 2024 for all new corporations and limited liability companies) These are minimum requirements and there may be more. The maim point is that if you don't keep the formalities on a yearly basis you probably will find your self personally liable for the business debts-the main reason most people file to become a limited liability company or corporation. Check your records yearly preferably about one month before your anniversary of forming the corporation or LLC to make certain you have met the formalites. Waiting until there is a lawsuit or a creditor comes after you personally is generally to late.