The Importance of Maintaining Corporate Records

The limited liability protection offered to corporate shareholders is by far the most important and distinctive advantage of incorporation. To enjoy the benefits of incorporation, the company must observe corporate formalities and properly maintain corporate records and accounts. This helps the corporation retain its corporate status and protects its officers and shareholders from personal liabilities. Sure this can be a daunting task, however, not when you have The Corporate Company on your team.

Protect Your Corporate Status Corporations must maintain current and proper corporate records so that creditors, which include the IRS, are not able to challenge the validity of the corporate shield. The corporation must maintain corporate records of all meetings and store them in a safe place, since it is critical to maintain the corporate shield.

The Corporate Company maintains your corporate records and ensures the corporation meets state reporting and filing requirements and deadlines. If a corporation doesn't maintain corporate records or is unable to annually report and file records, the corporation will get dissolved by the Secretary of State of your perspective state.

We keep the corporation in good standing by maintaining the necessary records. This helps the corporation pay all necessary federal, state, county, and business taxes, including franchise taxes. Keeping them up-to-date is high on the priority list. The company must also ensure that the minute books are able to demonstrate share ownership of the corporation. This is of primary importance, as the minute books are the official source of documents. Maintain the minute books so that they exactly reflect when the shares of stock were transferred and who owns them. They must contain the original stock certificates or share register of the owners.

Maintaining of the minute books at the local level allows people to understand the decision-making processes of the corporation. They can also reveal when decision makers ceased to function properly. By maintaining corporate records in minute books, people leave a trail of the decisions and the transactions of the corporation. This helps determine effective dates for tax purposes and helps ascertain justification for the accrual of expenses and fixed obligations. They grant corporate directors and officers the authority to act. Up-to-date records allow the corporation to avoid challenges to the corporation's authority to take certain actions.

We want you to focus on "conducting and running your business", as you leave the document filings and state deadlines for your organization to us.