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Smart Way #12: Make sure you file annual reports in the State you are incorporated AND in any State you are doing business as a foreign corporation.
This simple chore can be your Achilles' heel. Failure to file annual reports in the state in which the company is incorporated, and in each state in which it is registered as a foreign corporation, suspends the validity of your business entity and destroys the corporate veil. In other words, the separate entity ceases to exist. This means if you are sued, the law will consider you and your business the same person and all of your personal assets will be considered assets of the business and you will have absolutely no protection from the corporate veil. Even if you bring your company current by filing a late report, you will still have this "gaping
