Shielding shareholders from liability for corporate acts and omissions
So you incorporated, and now the shareholders are protected from individual liability for acts of the corporation, right? Not exactly.
Filing articles of organization in California or a certificate of organization in Delaware is a necessary first step, but it is just that: the first step in protecting founders and other shareholders. To achieve limited personal liability for acts and omissions of the corporation, founders, acting as the newly organized corporation’s board of directors, should also: