Corporate formalities are the procedural and documentation requirements that maintain the legal separation between a corporation or LLC and its owners. The category covers regular board meetings with minutes, annual shareholder meetings, proper resolutions for major decisions, separation of business and personal finances, accurate corporate records, and timely state filings. Failing to maintain them lets courts "pierce the corporate veil" and hold owners personally liable for business debts and obligations. They are the boring administrative work that most founders skip and the lever courts use to invalidate the limited-liability protection that was the whole point of forming the entity.
The major categories of corpora...