LawInfo

A C Corporation is a particular form of business association governed by the laws of each state. The primary reason to form a C corporation is to reduce the liability of the owners and board members of the corporation from a lawsuit by another party. To enjoy the benefits of C Corporation liability limitation the corporation must abide by the laws of the state in terms of the way it is formed, the record keeping it maintains and the rules relating to holding annual shareholder meetings. A lawyer who specializes in corporation formation can file your C Corporation, teach you about the legal requirements for record keeping and meetings, sometimes called corporate formalities, and keep your required C Corporation filings current. If you do this you can avoid personal financial liability for paying any judgments against the corporation that result from a lawsuit against the company.

 

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