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| Reading your post reminded me of the "Corporate Formations Pros and Cons" in my Legal Aspects of Business class 15 years ago...
Just an FYI for everyone...the various corporate formations do typically require at least minimal record keeping and annual corporate formality. If not completed and documented each and every year, a good attorney on the other side of the aisle will have your LLC, LLP, or Corporation thrown in the trash and the result will be attacking your personal assets. I don't hear about it happening often but it does happen.
https://www.corporatedirect.com/running-a-business/piercing-the-corp...
(Excerpt below from the above link)
HOW TO PREVENT PIERCING THE CORPORATE VEIL
Limited liability and tax benefits are not a right granted to every business person, but privileges earned by following corporate formalities. The following nine rules provide general guidance for maintaining the corporate veil while conducting business through a corporation:
Perform all annual filings;
Maintain internal formalities, including having a resident agent in their state of formation and in any state the company qualifies to do business in;
Maintain a written record of corporate decisions;
Provide the world with corporate notice;
Ensure the corporation is sufficiently capitalized; (This one can be a real killer)
Maintain the distinction between corporate assets and personal assets;
Use caution when distributing corporate profits;
Separate bank accounts; and
Separate tax returns
Although the burden of maintaining corporate formalities may not be appealing, the consequences of neglecting corporate formalities are great. Whether the corporation has followed the foregoing rules becomes important when a creditor seek to receive payment through the assets of the corporation’s individual shareholder, director or officer. Each rule and its various implications are discussed more in depth below. | |
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The $2 bucks is only about 1,000 acres of beans per farm Entity
