For those of you who have selected to have your business under a corporate or LLC shield, the date to hold your annual meeting is usually stated in your bylaws or operating agreement. Do you realize that your bylaws and operating agreement is really the constitution of your business? The constitution of your business is really no different from the one that guides our country (while we were thinking of the United States here, this comment applies to many other countries).
You need to run your corporation by the “book”
What would happen to our country, if we decided that one of the parts of the constitution was no longer important or better yet what if we just decided to ignore all of U.S. Constitution?
So, how is this different from ignoring the constitution (the bylaws or the operating agreement) of your corporation?
The documentation for your corporation is key to having a strong shield protecting your assets. This documentation is often found in the form of minutes.
Satisfying the Annual Meeting requirement with a “Paper” Meeting and a Waiver of Notice
Even if you are the only person as the owner of your corporation it is a requirement that you hold an annual meeting. Yes, you are required to hold an annual meeting each year. You are not alone if you think that it rather crazy to hold a real meeting with you and yourself. So what if I called this meeting “The Annual Paper Meeting”? Does that seem as crazy? The Annual Paper meeting works best for a small one person corporation or LLC. Oh yes back to crazy! If you decide to hold an Annual Paper Meeting there is a simple form “Waver of Notice of Meeting”. This means that you are not going to send yourself a notice that you are holding an Annual Paper Meeting.