This is a guide to help maintain limited personal liability for owners of a Pennsylvania corporation:
1
Interact using the Corporation's Name
All interactions with any third parties such as customers or creditors should be done in the Corporation’s name, and, where in writing, on Corporation letterhead.
2
Maintain Insurance
Maintain adequate insurance for the Corporation.
3
Use the Corporation's Full Legal Name
Any use of the Corporation’s name should always include the entire legal name of the Corporation (“ABC Corporation Inc.”), so that it is clear to third parties that they are dealing with a corporation and not the individual shareholders, directors, or officers. The Corporation’s correspondence, contracts, business cards, marketing materials, websites, invoices, statements, tax returns, etc. should use the Corporation’s full legal name to clearly indicate that it is a corporation.
4
Make it Clear the Corporation Owes the Money (not you individually)
All “accounts payable” (such as credit cards, telephone bills, utility bills, etc.) should be in the Corporation’s name and show the Corporation as the debtor.
5
Use Officer Titles when you Sign Contracts
All Corporation agreements, correspondence, and writings in any form whatsoever should be entered into or signed by one or more officers as “President” of the Corporation (or as “Vice-President”, “Treasurer”, or whichever other officer’s title is applicable). Always indicate a title so that it is clearer that you are not signing individually.
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