| Many people forming a corporation starting their new | | | | that should be used for all corporate documents, |
| business do so without learning the basic legal | | | | contracts, leases and anything related to the company: |
| principals, corporate formalities, needed to obtain and | | | | _______________________________ |
| retain their personal liability protection from corporate | | | | Acme Product, Inc. |
| debts. | | | | By: John Doe |
| This protection is called the corporate veil. If a | | | | Its: President |
| corporation starting out is properly structured and | | | | OR |
| these corporate formalities are followed, any debts of | | | | _______________________________ |
| the company will stop there unless they were | | | | Acme Product, Inc. |
| personally guaranteed. | | | | By: Jane Doe |
| One of the most often overlooked formalities is signing | | | | Its: Vice President |
| all documents, contracts and other leases in the name | | | | If you sign only using your name and not the name of |
| of the corporation and not the individual. In this signature | | | | the company with your official officer title, you run the |
| the name of the company should be listed first. | | | | risk of losing the argument in court that you signed as |
| Second should be your name. Finally you must list the | | | | an individual and not on behalf of the corporation. |
| capacity in which you are acting on behalf of the | | | | Whether it is your corporation starting out new or an |
| corporation. This capacity is that of an officer of the | | | | older more established corporation this along with the |
| company. Remember you are a president, vice | | | | other seven formalities are crucial for personal liability |
| president, secretary and or treasurer. | | | | protection. |
| Here are a couple of examples of the signature block | | | | |