Build your Business Like a Building: from the Ground Up – Not from the Roof Down!

While this sounds like common sense, it just amazes me how many people don’t think this way when forming a company.

All too often I hear, “oh yeah, my accountant filed my LLC for me,” or “yeah I filed it online myself.” I used to get excited when someone told me this, because they had done a little research and taken the initiative to take a great first step towards running their business the right way. HOWEVER, when I ask the follow-up questions, “great, can I see your Organization Meeting Minutes, Operating Agreement, Issued Shares, Company Seal and Corporate book?”….I just get this blank stare and I hear crickets chirping.

And this is the troubling part.

Without the above documents, the protection of your personal assets, (which is one of the key reasons you would form a corporation) may not be protected at all. These documents are the very foundation, the ground floor, of your company. You want to have these from the beginning! Not when someone makes a mistake, or an accident happens, or you get behind on a bill and someone wants to come after you to collect.

This just makes no sense to me because these documents are not very expensive and they can save you a whole lot of grief. Why would someone try to save a couple of bucks only to put themselves in a position to lose hundreds of thousands or even millions of personal dollars in a lawsuit? Usually because they are just not educated on the subject.

Well, now there is no excuse for you! You’ve read this blog post. So, the moral of the story is, make sure that whoever forms your corporation for you, also advises you on how to prepare the aforementioned documents. If you ask them a question about these documents and they give you the blank stare….its time to call someone else.