Don’t Use Your Corporate Name in Vain
Incorporating your business is a good way to decrease your chances of being personally responsible for business obligations. Unfortunately, you may not get these protections if you don’t use your corporate name. Even though you are incorporated, if you enter into contracts in your personal name, or even a business name other than your true corporate name, you may become personally liable. You can reduce your risk of having these problems by following a few simple rules:
- Always use your full corporate name when entering into any contract. That means “Joe’s Pizza Makers, IV, Inc.” and not simple “Joe’s Pizza”
- When you sign for the corporation, you should always identify your office and the full corporate name; i.e. “Joe Margherita, President, Joe’s Pizza Makers, IV, Inc.”
- Ask any attorney to review any larger contracts, or deals requiring a personal guarantee.