Is personal liability protected by the corporate form?

In all corporations, shareholders are not personally liable for corporate obligations unless corporate formalities have not been observed. Such formalities provide evidence that the corporation is a separate legal entity from its shareholders. Failure to do so may open the shareholders to liability of the corporation's debts. Corporate formalities include issuing stock certificates, holding annual meetings, and recording the minutes of the meetings. Many of these tasks invovle simple preparation of documents, which can be prepared by your attorneyon an annual basis and included in your corporate book.

Answer provided by Chuck Roach - Roach Law Office