Bookkeeping
Without proper bookkeeping and business
records, you could be held personally liable for the debt
that your corporation incurs. You could also, according
to Nevada accounting law, be guilty of fraud for co-mingling
of funds if you do not follow the proper procedures.
Red Rock Corporate Solutions corporate consulting experts
provide accounting services to make sure that you do not
make the mistakes that so many other corporations have experienced. Let us take the time to keep your corporate records
spotless while freeing your time to be productive and
focus on profits.
Corporate record keeping is used for many
different purposes. As you are guided through the incorporation
process you will begin seeing the importance of proper bookkeeping services (small business accounting, financial
accounting services). When you incorporate or form an
LLC in Nevada, your Nevada Corporation or LLC formation
will have to follow the Nevada Revised Statues. By failing
to abide by this your corporate veil could be pierced. Incorporating
in Nevada (tax free state) you will receive the greatest
tax benefits of any state, if proper bookkeeping standards
are followed.
We assume shareholders of smaller corporations, on
the other hand, are less concerned with business records
as a source for other business people than they are with
the need to demonstrate that the corporation is a real,
functioning entity that is responsible for its debts.
In those instances, and they are far from
rare, where the individual loses planned-for tax benefits
or is held liable for the corporation's debt, it is never
the fault of the "corporation." Rather, the
blame lies with corporate personnel, officers, directors,
and shareholders who do not maintain proper record keeping
that proves the corporation had an existence separate
and apart from its investors.
Courts have repeatedly and frequently imposed liability
for a corporation's debts on its principals, i.e., directors,
officers, and/or shareholders. In these cases, the courts
can use either of two doctrines:
1. The alter ego doctrine, under which they
hold that the corporation is no more than the alter ego
of its shareholders, and, as such, its liabilities should
be their liabilities; or
2. The piercing-the-corporate-veil doctrine, under which
the courts rule that the corporation is really a sham
and that it would perpetrate a fraud to recognize
its existence as a separate entity. Under this doctrine,
the courts look through the corporate "veil"
to its shareholders and hold them liable for the company's
debts.
There is a common pattern to the fact in
all of these cases: records were not kept at either the
director or stockholder level. This means that if a payment
is not documented for a corporate purpose it can give the false appearance of being made for the benefit
of a shareholder, thus the shareholder is held liable.
We assume all of the hassles of accounting
and bookkeeping through our bookkeeping services, which
relieves the business owner. We provide financial
accounting services and tax services to all types of small
businesses accounting nationwide in addition to Nevada
accounting services. All you have to do is send your documents
every month. No matter how you pay your employees (weekly,
bi-weekly, or monthly), Red Rock Corporate Solutions corporate consulting can and will take all responsibilities
of check-writing, data entry, and everything included.
We also manage quarterly payroll tax requirements at no
added cost to you. The greatest thing is your taxes are
prepared by experienced tax professionals.
Overall there are many laws and rules to follow when
incorporating in Nevada. In the corporate arena in any
state, you should maintain proper corporate records form
the very start. This means retaining qualified financial
accounting services. When starting Nevada incorporation
and running Nevada corporations in which Nevada is a tax
free state, there are many guidelines and rules to follow.
You may have to produce corporate records that are precisely
in order to maintain clearance of your corporate veil.
Let Red Rock Corporate Solutions take care of all your corporate records for
your Nevada corporation or LLC formation when you incorporate.
