Day-to-Day Activities

Day-to-Day Activities

There are not many differences between running a corporation and any other type of business. The most important point to remember is to keep the corporation's affairs separate from your personal affairs. The corporation should not make frequent loans to its shareholders, and funds of the corporation and individual shareholders should not be commingled. Funds taken out or put into the corporation should be documented. The decision of whether these should be salary, loans, dividends or otherwise, should be made with the help of an accountant based upon your financial situation.

Another important point to remember is to always refer to the corporation as a corporation. Always use the complete corporate name, including designations such as Inc. or Corp., on everything. Always sign corporate documents with your corporate title. If you do not, you may lose your protection from personal liability. There have been many cases in which a person forgot to put the word president after his or her name when entering into contracts for the corporation. As a result, the person was determined to be personally liable for perform­ance of the contract.