American Corporate Enterprises, Inc.'s Blog: A Penny Saved...Can Be A Fortune Lost

American Corporate Enterprises, Inc.'s Blog: A Penny Saved...Can Be A Fortune Lost:A Penny Saved Can Be A Fortune Lost

It wasn’t that long ago that we were bombarded with news updates about the horrific Deepwater Horizon oil spill (a.k.a. BP oil disaster) that occurred back in April of 2010. In January 2011 the Whitehouse oil commission released a report wherein they blamed BP and its partners for a series of cost-cutting decisions as contributing to this catastrophic accident.

One of the so called cost-cutting decisions was to not use a diagnostic tool to test the strength of the cement. What was the cost of this tool? The cost was a tiny fraction of what they lost in oil, paid for cleanup, what they have paid to settlements and what they will pay for future settlements. That’s right- a tiny fraction!

How does this relate to you? Do you have a Corporation but no Corporate Record Book? It’s all too common these days for people to want to start a Corporation and put off obtaining a Corporate Record Book to cut startup costs, figuring that they’ll get to it later. But most forget about it.

About 60% of closely held Corporations are in jeopardy of having their corporate veil pierced because they don’t tend to the formalities of issuing stock, keeping up their Corporate Minutes and Resolutions, etc.

A couple of years ago a gentleman called to inquire about the cost of setting up a Corporation. He mentioned that he did indeed want a Corporate Record Book with his order. He said he had recently lost a lawsuit that wiped him out. He stated that the court ruled against him because he had no Corporate Record Book and had not issued stock. He vowed to do it right this time.

Here again is another example where initial savings ended up costing many times more in the long run. How much is a Corporate Record Book? It varies depending on where you purchase it, the quality, etc. but it most definitely was a small fraction of what this gentleman lost. Typically you can purchase one for under one hundred dollars.

Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.