Whether you’ve created a corporation or limited liability company, you need to maintain records. Here is a primer on the essential corporate records you should maintain.
When forming a corporation or limited liability company, you’re creating an entity independent from yourself. By doing this, this independent entity must take actions for itself, not you. For example, a corporation could have a corporate bank-account by which all revenues and debt payments are handled. As a shareholder, despite having an individual shareholder entity, you won’t pay person expenses from the corporate bank-account. This concept reaches record keeping.
For instance, articles of incorporation for a corporation serve exactly the same purpose as Articles of Organization. The list following pertains to corporations, nevertheless, you can apply the list to the limited liability equivalents.
Although each state has different records requirements, all need you to keep carefully the following records.
Articles of Incorporation – The charter establishing the existence of the entity with the relevant Secretary of State.
Bylaws – The guidelines of the organization. Essentially, the bylaws lay out the way the corporation will undoubtedly be administered from the procedural perspective, the rights of shareholders, how meetings will undoubtedly be called and so forth.
Board Resolutions – They are resolutions passed by the Board of Directors every once in awhile, such as for example defining classes of corporate stock and approving particular courses of action for the business enterprise.
Minutes of Shareholder Meetings
Annual Meeting – Every state takes a corporation to possess a minumum of one meeting of the board of directors every year. Keep these in your corporate book.
Shareholder Communications – Copies of most communications to shareholders. Most states need you to hold these for 3 years, nevertheless, you should keep these permanently to protect against future shareholder lawsuits.
Shareholders – A listing of shareholders and the shares they own.
Annual Report – Most states need you to file an annual or bi-annual report with the Secretary of State. Keep copies of the in your corporate records. Most states give a pre-printed form.
Balance Sheets – Shareholders have the proper to inspect the finances of the organization, although this right has limitations. You should keep up up to now balance sheets.