You keep your corporate minutes and a record of your key decisions in a corporate record book. Your corporate record book helps the corporation meet state reporting and filing requirements.
When did you last read or review your record book? The record book is your business identity if you don’t know what is in it how can you know that it is protecting your business? Your record books tells others a story of how much life you have put into your Corporation/LLC.
You can think of a corporate record book as insurance. What if you called your insurance agent and told him or her that you didn’t want fire insurance for your home? Your agent would tell you that you would be taking a huge risk. You can think of your record keeping activities as insurance for your business.
What’s in your corporate record book? Your Corporate Record Book should have the key decisions that your Board has made. As well, as an owner of a Corporation/ LLC you will need at least one annual meeting each year.
Formally documenting key corporation/LLC actions is a sure fire way to remember all decisions. If you fail to document key legal, tax, financial decisions and to document all items as stated by State laws regarding your corporation you could lose the protection of your corporation status. If this happens you as the member or shareholder/director could be held personally liable for the debts of the corporation. My question to you is: How much could it cost you to not have documentation recording the decisions regarding your corporation/LLC?