Your personal assets can be used to satisfy a legal judgement against your business if you don't maintain the proper corporate formalities. Make sure you are up to date with your filings and your corporate book has the following:
- Proper documents such as meeting minutes, board resolutions, stock ledger, etc.
- Operating agreement
- Partnership agreement
- Corporate by-laws
More specifically, forming a company allows individuals to protect their personal assets from their business. Rather than owning assets personally and therefore being liable for their debts, potential lawsuits and other risks, businesses must operate and conduct themselves like a business in accordance with the law.
If a business does not keep corporate records, maintain a corporate book with minutes, operating manuals, by-laws, etc., the business is not following the corporate formalities required by the Florida Statutes. A claim against your business will allow the Plaintiff in a lawsuit against your business to pursue the company’s assets and your individual’s assets are at risk for exposure as well. Maintaining the proper updated documents and formalities can prevent personal liability for a company's lawsuits and debt obligations.