forming a corporation shares need to be issued to the owners of the company. Without issuing the shares, there is a potential of having the corporation veil pierced in a lawsuit because the court will claim the company is just an alter-ego of the individual.

Issue shares for the by filling out a stock certificate and recording the transaction in a stock register.

Mistake #2 - The initial meeting of shareholders and directors is not held. Every corporation when it is first formed needs to have an initial meeting with the shareholders and directors in order to adopt the Articles of Incorporation, Bylaws and to issue the shares for the company.

Even if you are a one person corporation it will benefit you to have the meeting.

Mistake #3 - No resolutions and other documentation is kept. Every corporation needs to maintain corporate resolutions and meeting minutes. A corporate resolution is a written document that gives someone in the company authority to perform a specific action. For example, if the needs a loan, a resolution would be written and signed by the Director of the company giving authority to an individual to open the loan and use it for purposes.

You can tack your corporate records with a corporate record book or corporate management software.
David Gass is co-developer of The Corporate Manager Software A free trial of the software can be found at www.corporateforms.net David has spent the last four years developing the content and programming for the software that manages all aspects of corporate documentation. www.corporateforms.net