Many people forming a corporation starting their new business do so without learning the basic legal principals, corporate formalities, needed to obtain and retain their personal liability protection from corporate debts.

This protection is called the corporate veil. If a corporation starting out is properly structured and these corporate formalities are followed, any debts of the company will stop there unless they were personally guaranteed.

One of the most often overlooked formalities is signing all documents, contracts and other leases in the name of the corporation and not the individual. In this signature the name of the company should be listed first. Second should be your name. Finally you must list the capacity in which you are acting on behalf of the corporation. This capacity is that of an officer of the company. Remember you are a president, vice president, secretary and or treasurer.

Here are a couple of examples of the signature block that should be used for all corporate documents, contracts, leases and anything related to the company:
_______________________________
Acme Product, Inc.
By: John Doe
Its: President

OR
_______________________________
Acme Product, Inc.
By: Jane Doe
Its: Vice President

If you sign only using your name and not the name of the company with your official officer title, you run the risk of losing the argument in court that you signed as an individual and not on behalf of the corporation. Whether it is your corporation starting out new or an older more established corporation this along with the other seven formalities are crucial for personal liability protection.