Corporate Compliance Records is a must!
Is it important to complete your company’s annual statements and maintain company records, such as minutes, each and every year?
If your company does not file annual statements and maintain company records, there are severe consequences, even for small companies. There are certain compliance requirements that must be part of a company’s records. This would include filing annual statements and keeping (at least) annual minutes for the business.
Failing to file annual statements and maintain all appropriate company minutes can result in not being able to open a bank account, obtain financing, sell the business, complete business transactions and assert the corporate shield of limited liability. Further risks could include someone else taking and using your company’s name if annual statements are not filed. One of the greatest risks is an opposing party in a lawsuit arguing you (as the business owner) did not follow the required corporate formalities and becoming personally liable for company debts/liabilities, i.e., having the corporate veil pierced.
What’s Involved, Required or Needed?
- Each corporation needs to hold initial and annual director and shareholder meeting with corresponding minutes documenting the adoption of bylaws, election of directors and officers, and other significant events for the corporation.
Limited liability companies should maintain an operating agreement, and hold at least annual member meetings with corresponding minutes documenting who are the managers (if manager managed) and other significant events for the LLC.
Business Launcher has the legal resources to ensure these corporate formalities are met each year in a time and cost efficient way.
- Failure to do so, exposes the owner of a business to potential huge liability. Courts look at whether a business maintained the appropriate company records as a factor in determining whether or not to hold an owner liable for their company’s debts/liabilities.
What’s the Outcome?
By signing up with Business Launcher each company and their owners are ensured that their annual statements and annual corporate minutes will be properly and timely completed using Business Launcher’s unique time and cost efficient methods.
This will allow owners of companies to have peace of mind that the deadlines are met and to allow owners to focus working on their businesses instead of working in their businesses.