The Law Office of
      Dennis E. McHugh


Contact Us
(978) 256-3330

staff@dmchughlaw.com


Periodic News

Beneficiary Designations


Beneficiary designations control the money! 


Beneficiary designation forms control the payment of money from IRA's, 401(k)'s and insurance policies.  These assets are controlled by your contract with the plan or company and not by your will, unless you have named your estate as the beneficiary.  Many beneficiary forms are filled out early in life when you may have designated your parent or sibling as beneficiary.  Please take the time to check the beneficiaries named in your IRA's, 401(k)'s or life insurance policies to be sure your money goes to the people you would designate today.



Keeping Accurate Corporate Records


Keeping Accurate Corporate Record will save and make money!  


The most common reason people incorporate is to shield themselves from personal liability for the debts and actions of the corporation.  Failure to act as a corporation could result in this shield being penetrated and you as a stockholder or director being held personally liable. 


Accurate Corporate records, including up to date minutes from every stockholder and director's meeting show that your company is acting like a corporation.  Failure to hold annual meetings and keep accurate records could result in shareholders and directors being held personally liable for actions of the corporation.  


In addition, sloppy and inaccurate corporate books could prevent your corporation from receiving financing or keep you from selling your corporation.  Often potential lenders and/or buyers will want to review your corporate books as part of their diligent search.   Also, do not forgot the possibility your corporation could be audited.  Inaccurate and out of date corporate books could cost you money. 


In addition, corporations are required to file Annual Reports and a Certificate anytime there is a change in officers, directors or resident agent.  Failure to file the Certificates and annual reports can result in fines and or dissolution by the Secretary of the State.  If the corporation is dissolved by the Secretary of State then the corporation cannot conduct any new business.  Any business done after dissolution exposes the Shareholders to personal liability. 


Please keep up to date minutes of all meetings and please remember to file your Annual Reports.