News and Research

From time to time we will post valuable information pertaining to corporate record keeping and compliance issues.

Smart Way #14: Make sure you document loans between the company and shareholders/members.

Proper documentation includes formal promissory notes with reasonable interest rates, security agreements, personal guarantees, and other related documents. If you fail to document loans, you're inviting the court to conclude that you're commingling funds, which is a common reason to declare you personally liable.