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How To Prepare Our Corporate Paperwork For Our Wealth?
Protect our company (and our assets) by using the appropriate corporate documentation.
Summary:
Find out why having the right corporate documentation is essential to safeguarding our company and assets.
All of our company's documents should be in one location in our minute book.
When putting together our company's minute book, make sure to consult the appropriate individuals.
It's critical that our Corp, LLC or LP has the appropriate corporate documentation. If it is not in place, the corporate veil may be breached and unlimited personal liability may be imposed. When someone wins a lawsuit against the company and argues that they should be able to collect from the owner(s) personally because, the owners, failed to follow the corporate procedures, this is known as piercing the corporate veil. This is not what we want to occur. We want to protect ourselves personally, and every asset we acquire or build.
Create the company's minute book
The purpose of the corporate minute book is straightforward. We will be far better able to maintain our records up to date if we force ourselves to keep all of the company’s paperwork in one location, in one binder or a file online through our smart devices or computers. If one document is missing—for instance, the minutes of our previous year's annual meeting weren't prepared—we can easily identify the issue and fix it right away. We stay focused thanks to our minute book.
We may easily make our own minute book if we don't already have one. Get some dividers and a three-ring binder from any office supply store, and put in the following:
Corporations
Articles of Incorporation
The Secretary of State's Corporate Charter
Form for a Resident Agent submitted to the State
IRS-assigned Employer Identification Number on SS-4 notice
Bylaws
Meeting minutes (annual, special, and organizational, along with notices and waivers)
Distribute certificates (copies or originals)
Register for Shares
Form 2553 (should we have submitted a S corporation tax return)
Limited Liability Companies
Articles of Incorporation
Organizational Certificate from the Secretary of State
Form for a Resident Agent submitted to the State
IRS-assigned Employer Identification Number on SS-4 notice
Agreement for Operations
Meeting minutes (annual, special, and organizational, along with notices and waivers)
Certificates of Membership (originals or copies)
Membership Register
If we submitted a corporate tax election, use Form 8832.
Limited Partnerships
Certificate of Limited Partnership (LP-1)
The Secretary of State's Certificate of Formation
Form for a Resident Agent submitted to the State
IRS-assigned Employer Identification Number on SS-4 notice
Agreement for Limited Partnership
Meeting minutes (annual, special, and organizational, along with notices and waivers)
Certificates of Limited Partnership (originals or copies)
Register of Limited Partnerships
Please be aware that different states may have different names for some of the documents mentioned above. To keep ourselves protected, it's crucial to make sure our company minute book contains one of each kind of form.
We should have a clear document retention policy in our company's documentation.
Senior management of the organization usually develops a document retention policy with input from all of the company's employees.
This policy's objective is to establish our information preservation and destruction procedures. Simplifying this will save us time while looking for the information we need and will also aid if documents are needed in the event that litigation (whether it be a corporate or government disagreement) arises.
Employees should always be consulted because they are on the front lines and are handling vast amounts of data. Our it specialist and the company lawyer, who ought to be aware of the legal retention periods for our particular organization, will also be involved.
Among the things to think about are:
Which documents are involved?
These documents are where?
In what way are they kept?
Who is in charge of them?
For what length of time should the records be retained?
Who will make the decisions about which papers are destroyed or retained?
How will the records be disposed of?
Who is responsible for implementing the policy?
A document retention policy will assist us in maintaining control over a vast amount of information as the documents accumulate.
Policy for document deletion
We will specify an automated email destruction date as part of our document retention strategy. Our policy might specify, for instance, that all emails that are not removed for reasons of relative retention would be deleted after four years. The thousands and thousands of emails we have from four years ago about unrelated products’ solicitations, explanations, confirmations, directions, and meetings are absolutely unnecessary. Keeping it costs us money. Thus, dispose of it.
All employees should be aware of and abide by the policy; those who do not should face disciplinary action. Indeed, it is that significant. The policy should be reviewed for legal and technological upgrades and audited for compliance on a regular basis.
Note that "The Litigation Hold" should be covered by our document retention policy as well. Document destruction must be stopped when litigation is "reasonably foreseeable." We have an obligation to preserve evidence as a party to a litigation. Who has the authority to declare a litigation hold and what to do once one has been placed should be outlined in the policy.
The next query is: at what point is litigation reasonably foreseeable? Certainly, serving a lawsuit qualifies. We have been sued by then. However, a valid verbal threat of litigation or a demand letter is likewise regarded as a reasonably foreseeable event. just like any preliminary inquiry conducted by a government or law enforcement organization. An accident or incident that results in property damage or bodily injury is also eligible. It is best to speak with our attorney in these or comparable circumstances.
Maintain current corporate documentation
Keeping our company's minute book up to date will be crucial in the future. Adding our annual and special meeting minutes to the minute book will be the main reason for this.
Keep in mind that every state mandates the holding of at least one company meeting annually. To demonstrate that the corporate procedures have been followed, the minutes of that meeting must be recorded in writing and entered into the meeting book. Even though not all states mandate yearly meetings for LLCs and LPs, the day will come when the limited liability veil will be breached if such meetings are not held. Therefore, it is advisable that we also organize meetings for entities such as the LLC, Corp, and LP.
The tax advantages that we gain are tremendous just by simply utilizing the proper entity which will be incorporated in the most beneficial state for its operation, and maintaining its proper paperwork will be crucial for ultimate success. Play the game of money with the wealthy context, new rules of money, and we must document everything about our operation. A wealthy entrepreneur documents everything and uses the corporate laws to miniziae taxes to zero legally. Making our wealth truly tax-free. It is not how much money we make but how do we make our money and how much money we get to keep under our control that defines our financial intelligence.
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