As the end of the year approaches, do you have your company’s annual meeting planned? Have you drafted your company’s annual minutes?
Annual meetings and minutes are an important corporate formality with which all Ohio corporations and LLCs should comply, but many don’t even realize they need to do them!
Although filing as a corporation or LLC helps limit your personal liability, merely incorporating by registering your business with the Ohio Secretary of State isn’t the only requirement you need to follow to protect yourself. Legal requirements – officially called “corporate formalities” – are the rules set down by the State of Ohio that a business must follow to become a formal legal entity. Failure to observe corporate formalities can lead to significant legal issues, including potential attempts by others to “pierce the corporate veil,” a legal claim recognized by Ohio courts.
All Ohio corporations and LLCs – regardless of size, type of entity, or age – are required to follow corporate formalities. A single-owner LLC is just as responsible as a billion-dollar corporation in the eyes of the law.
The 3 most important corporate formalities every Ohio corporation must follow:
- All companies must have corporate governance documents. i.e., bylaws (for corporations) or operating agreements (LLCs).
- All corporations must hold annual meetings with their board of directors and all LLCs should hold annual meetings.
- All corporations must record written minutes of these annual meetings. LLC’s should record written minutes. There are additional corporate formalities with which your corporation or LLC should comply, however they are often dependent upon your company’s situation. If you’d like to discuss your company’s requirements further, please contact me to schedule a complimentary initial ½ hour audit!
Wick Law, LLC’s Annual Minutes package includes a 20-minute phone interview, a review of your Company’s current legal status and filing information, and drafting of an Annual Meeting Minutes document you will file in your corporate book.
Normally $350 for single-owner LLCs/corporations and $450 for multi-owner LLCs/corporations, we are offering a special discount now through the end of 2020: $300 for single-owner LLCs/corporations and $350 for multi-owner LLCs/corporations.