With every new year, there is a time of reflection on the past and planning for the future. Unfortunately, many businesses do not look internally at their legal setup to simply determine their status. When they do, it is too late for an easy resolution. Working with a lawyer is a lot cheaper if the work is preventative rather than repair. If your company does not have an in-house lawyer, or if it does not have a regular outside attorney it regularly consults regarding its legal affairs, it may be time for a legal checkup.
There are many things to consider in a legal checkup. Here is a tip for just one:
* Has your business properly maintained its registration with the authorities? In Maryland, it is with the Department of Assessments and Taxation. With others, it may be through the Secretary of State’s office or something similar. I am always surprised by how many companies fail to maintain their annual registration and have been administratively dissolved. The result of this failure is no corporate shield against liabilities. Most of the time, reinstatement is possible, but you will need to act quickly.
For other checkup items, drop us an email at firstname.lastname@example.org.
Happy New Year and good luck in business in 2011.