Are you looking to hire a business attorney in Atlanta to assist you with corporate maintenance? My office has been committed to providing this service to clients for years but many people don’t recognize the value of corporate maintenance until an issue or problem has already come up.
By being proactive and engaging an Atlanta business lawyer for corporate maintenance support you’ll be well on your way to guarding against these potential downsides and ensuring that you’ve considered all important issues well in advance.
Understanding Corporate Maintenance
Corporate maintenance is a broad term that is used to explain the practice of ensuring that a corporation has all necessary meetings, has captured all proper records and notices, and that all key corporate documents are properly kept and stored.
It can be very challenging to keep track of all of the different materials for your corporation which is why many Atlanta businesses retain a knowledgeable Georgia business attorney to assist with corporate maintenance issues.
Lawyers can play many important roles in assisting with your corporate maintenance process, from reminding corporate officers that a shareholder’s meeting needs to be conducted or to completing the state annual report, or writing up the minutes for shareholder meetings. Furthermore, the corporation must remain in good standing and so it often falls to the experienced Georgia business attorney to ensure that all deadlines are properly monitored.
Risks Associated with Poor Corporate Maintenance
Corporate maintenance is not just a service you should consider after a disaster has already happened. There are many different risks facing a company as it relates to poor corporate maintenance practices. The state of Georgia, the IRS or a court could determine that you are not a legitimate corporation if you are failing to follow the appropriate practices.
Engaging the services of a Georgia business attorney can help ensure that you remain in compliance and are knowledgeable about any changes in regulations or laws that require an update to your materials. Some of the potential risks associated with poor corporate maintenance include:
- The corporate veil being pierced during a litigated case.
- IRS problems.
- Not being able to move through a merger or sale at a going market rate.
- Corporate dissolution.
- Creditor access beyond the corporate veil.
All of these are extremely serious and could jeopardize the future of the company. Recognizing the value of a Georgia business attorney should be a top priority for any company that wants to remain compliant and also guard against these possible downsides. Having a solid exit strategy is important for any corporation if you ever intend to merge with any company or sell your business.
Due diligence will require the other side to look up your annual reports and to look at your corporate records so these should already be properly created and stored when the other company gets to this point. If you are not able to produce accurate, full and timely corporate records, this is a potential red flag that could sink an otherwise very successful sale.
Poor record keeping practices also expose the new biography of your company to attacks from plaintiffs from litigation because few companies are willing to take on your debts in the event that they lose such a case. You could be left without a compelling and clear exit strategy from your business if you fail to address your clients’ issues and corporate records.
In addition to these risks, there are several different benefits to having an attorney to assist with your compliance concerns and corporate maintenance issues. It is easy to overlook these administrative matters as a busy executive but submitting annual reports, keeping minutes and shareholder meetings are still crucial to the operation of your corporation.
When an attorney is handling the corporate maintenance of your business, you can rest assured that all of the finer details have been dealt with and know that you are in full compliance with state and federal laws. Finally, you will not have to worry about corporate best practices or reporting requirements because your attorneys should take it upon themselves to handle this. Having an attorney to oversee your Georgia corporate maintenance ensures that you avoid things like the corporate veil being pierced or the IRS identifying that shareholders are personally liable for corporate tax obligations.
The costs of having an attorney to assist with your corporate maintenance are very small compared to the risks of being found out of compliance. You should engage the services of a trusted corporate maintenance attorney as soon as possible after establishing your company to ensure that you avoid these potential downsides.