How to Stay Compliant

Did you know that if your corporate minutes are inaccurate or incomplete, it can do harm for your business in the long haul?

Minutes are a written record of transactions taken,  or authorized by, the board of directors or shareholders. They should be kept  in the corporate record book for your company because these are crucial for  your corporation. When kept properly, corporate minutes can help protect  personal assets of the owners and officers. Inaccurate or incomplete  corporate minutes can expose your corporation to damaging lawsuits and IRS  audits.

Things to consider:

• The minute book is an important audit backup. With it, one can determine effective dates for tax purposes and establish justification for the  accrual of expenses and fixed obligations.
• Up-to-date records can help you avoid challenges to the corporation’s authority to take certain actions, weather those challenges come from fellow directors, employees or government agencies.
• The minute book institutes the background record needed by your lawyer to support certain legal opinions. The corporate minute book provides evidence that the corporation has done everything it is supposed to do.
• The corporation’s minute book should include stock records. This section needs to be carefully kept current because it is the one true ownership record of the stock of the corporation. Ownership is not officially recorded anywhere else.

Have  you thought about a compliance check for your business? To schedule an annual  compliance check, contact a Nevada Corporate Headquarters representative at  1-800-508-1729.