Corporate Records What to Keep

Regardless of whether youve produced a corporation or limited liability business, you should retain records. Heres a primer on the standard corporate records you need to retain.

Corporate Records

When forming a corporation or restricted liability company, you are producing an entity independent from oneself. In so doing, this independent entity ought to take actions for itself, not you. For instance, a corporation will have a corporate bank account via which all revenues and debt payments are handled. As a shareholder, even with a single shareholder entity, you will not spend individual costs out of the corporate bank account. This concept extends to record keeping.

For the purpose of this report, I am thinking about both corporation and limited liability company documents as corporate records. Although the records of each entity have different names, they serve the identical purpose. For instance, articles of incorporation for a corporation serve the very same objective as Articles of Organization. The following list applies to corporations, but you can apply the list to the restricted liability equivalents.

Even though every state has various records requirements, all need you to maintain the following records.

1. Articles of Incorporation The charter establishing the existence of the entity with the related Secretary of State.

2. Bylaws The rules of the corporation. Basically, the bylaws set out how the site link corporation will be administered from a procedural perspective, the rights of shareholders, how meetings will be called and so on.

three. Board Resolutions These are resolutions passed by the Board of Directors from time to time, such as defining classes of corporate stock and approving distinct courses of action for the organization.

four. Minutes of Shareholder Meetings

five. Annual Meeting Each state needs a corporation to have at least a single meeting of the board of directors every year. Maintain these in your corporate book.

6. Shareholder Communications Copies of all communications to shareholders. Most states require you to this site hold these for three years, but you should maintain these permanently to guard against future shareholder lawsuits.

7. Shareholders A list of shareholders and the shares they own.

8. Annual Report Most states need you to file an annual or bi-annual report with the Secretary of State. Preserve copies of these in your corporate records. Most states supply a pre-printed form.

9. Balance Sheets Shareholders have the correct to inspect the finances of the corporation, although this correct has limitations. You require to maintain up to date balance sheets.

ten. Tax Returns

So, how lengthy must you preserve these corporate records? Some attorneys will tell you 3 or 5 years. Personally, I think you ought to maintain them permanently. If a shareholder dispute occurs, you dont want to testify you via away a document. If the organization is at some point consumers sold, the buyer is going to want to see all corporate records. Either way, you are greater off holding on to all records.