Small businesses spend so much time on growing their business that they often overlook some serious and costly issues. Forgetting to file you business’ annual report and pay the associated fees will cause your business to fall out of compliance. Or if you’ve been operating your business under a different name and have not registered a DBA with your state, you may have fallen out of compliance.
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.