Bring your corporate minutes up to date
The start of a new year is a good time to take care of a few “housekeeping” details in your business. One of those details, and it’s a very important one, is making certain that your corporate minutes are complete, accurate, and up to date.
To preserve the legal benefits of incorporation, corporations should hold regular director/shareholder meetings. By keeping clear and appropriate records of these meetings in the form of corporate minutes, firms can save taxes and avoid business problems.
Business matters with potential tax consequences should be carefully recorded in the minutes. These include dividends, bonuses, deferred compensation arrangements, and loans, leases, or other transactions between officers or shareholders and the company. You should clearly document the business intent behind each decision.
If your corporate minutes have been neglected, get with your attorney and bring them up to date.
Before you invest in any business, it's always a good idea to discuss the proposed venture with your advisors. If you would like assistance with evaluating a business opportunity or with legitimate tax planning, please call our office.