If the Internal Revenue Service were to notify you of an impending audit, would you be prepared?
As a business owner, you are required to hold Shareholders’ and Directors’ meetings, maintain corporate records, and document major corporate decisions. If you neglect these formalities and your business runs into legal trouble, a court may decide to disregard your corporate status, and hold you personally responsible for the corporation’s debts.
The good news is that we can help streamline the procedures for operating a small corporation, permitting you to make decisions quickly, without jumping through needless procedural hoops.
While you don’t need to document routine business decisions, you should prepare written minutes or consent resolutions for events or decisions that require formal Board of Director or Shareholder participation.
- The proceedings of annual meetings of directors and shareholders
- The issuance of stock to new or existing shareholders
- The purchase of real property
- The approval of a long-term lease
- The authorization of a substantial loan or line of credit
- The adoption of a stock option or retirement plan, and the making of important federal or state tax decisions
When you document important corporate decisions, whether through formal written minutes or less formal consent resolutions, you’ll protect your limited liability status. You’ll also have solid documentation if key decisions are later questioned by creditors, the courts, or the IRS. In addition, keeping good corporate records allows you to note the reasons for making critical decisions; this can head off controversy and dissention in your ranks in the future.
With Fiducial Recording Secretary Services, you will have the freedom to grow your company and achieve your goals. Fiducial offers you the latitude to focus on your core operations.