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Category: Business Law
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I am about to create an S-Corp, which I will primarily use

Resolved Question:

I am about to create an S-Corp, which I will primarily use to enter consulting agreements with other companies.

One of my client would like to enter a consulting engagement with me. I would like to enter a consulting contract with them via my S-Corp. Can I do so prior to the finalization of the incorporation of my S-Corp?

Additionally, if the contract is between my S-Corp and the client's company, can the billing for the services provided by my S-Corp be done via my personal bank account?

Thank you.

-FL
Submitted: 11 months ago.
Category: Business Law
Expert:  Richard replied 11 months ago.
Hi! My name is XXXXX XXXXX I look forward to helping you!

You will need to have your corporation formed before it can enter into a contractual relationship. If you want to get the consulting engagement done before you form your corporation, what you would want to do is enter into the agreement personally and have a provision in the agreement that you have the right to assign it to your corporation upon its formation at which time all rights, duties and obligations are assumed by your corporation and the other party agrees that you are released personally.

With regard to your second question, the reason to form a corporation is for the limited liability aspect...where your personal assets are protected from the debts and liabilities of your corporation. To make sure you maintain that limited liability, you want to treat the corporation as a separate and distinct entity and not co-mingle things between your corporation and your personal accounts. Thus, you don't want to use your personal bank account for your corporation's business; rather the corporation needs its own accounts to avoid a creditor later being able to "pierce the corporate veil" and pursue you personally for corporate debts and liabilities.




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Richard, Attorney
Category: Business Law
Satisfied Customers: 46157
Experience: 32 years of experience practicing law and a businessman.
Richard and 10 other Business Law Specialists are ready to help you
Expert:  Richard replied 11 months ago.
Thank you so much for the positive rating! I truly appreciate you taking the time to do that!
Richard, Attorney
Category: Business Law
Satisfied Customers: 46157
Experience: 32 years of experience practicing law and a businessman.
Richard and 10 other Business Law Specialists are ready to help you

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