Although filling 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 with one of our attorneys, please contact us to schedule a complimentary initial ½ hour audit!
Take advantage of our special end of the year offer: $200 for single-owner LLCs/corporations and $375 for multi-owner LLC/corporation annual minutes preparation! This package includes a 30 minute phone conference, 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. Contact Melissa now to schedule a phone call!