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Tip 2: Maintaining Your Corporate Books
· Don't forget to record stock transfers and the purchase doc stamps….
When you sell or transfer stock within your corporation you are required to document this sale or transfer.· Common Avoidable Costly Error Business Owner's Make…
All stock transfers must be recorded in the Corporate Book and in most states you are required to pay tax on the sale or transfer. Check with you state department of Revenue or seek legal counselBy not recording the sale or transfer of stock properly you are again putting yourself at risk and leaving an opening where the government or in the advent of a lawsuit, the Corporate Veil maybe pierced. (When the corporate veil is pierced…you are not afforded the protection of the corporation. This puts you personally and your personal assets at risk)