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Smart Way #13: Make sure you keep accurate corporate records.
This means you must not only hold meetings, but you must also keep accurate records of those meetings. What's more, you must keep those records available so you can reference them at any time. It's the diligent keeping of these records that helps create and maintain the corporate veil that protects the personal assets of the shareholders, directors, officers, or members. This is true even when a single person wears all hats and holds every office of the corporation. Think of it this way: your corporate veil is only as thick as your corporate record book. Your Board Minutes and Resolutions provide documented proof of a proper chain of command for your company's decisions and actions. What should you document? Easy. Whatever you don't want to be personally liable for. If you're acting on behalf of your company in any major action, you should get written board authorization-even if you're the only board member.
