Corporate Maintenance
Short Summary: If your business is a corporation, it’s crucial that you take necessary actions to treat it as such. If you don’t, not only can you weaken your corporate shield (risking your personal assets), but you can also make it less likely that you’ll be able to attract funding or buyers down the road.
Corporate Maintenance Tasks:
File an annual Statement of Information or Statement of No Change with the California Secretary of State.
Prepare and submit any reports in other jurisdictions where you’re qualified to do business and ratify them.
Confirm California Franchise Tax has been paid, as well as required federal tax filings.
Prepare any required notices for shareholder and director meetings, per your Bylaws; prepare any reports required to be delivered to shareholders (less likely for small close corporations).
Document minutes of shareholder meetings, including board elections, any required ratifications for the year, and approving any reports.
Document minutes of directors meetings, appointing executives, ratifying decisions, and approving any reports (financial or otherwise).
Pay special attention to the following items which may require shareholder or director approvals: transfer or acquisition of assets, hiring of key employees, election of directors, election or appointment of officers, transfer of personal obligations to the corporation, assumption of indebtedness, lending, qualifying to do business in other jurisdictions, moving the principal office of the business, update in organizational chart, and more.
Other items worth considering: updating your Articles of Incorporation if there have been significant changes, considering opting to become a Close Corporation
Find more helpful information on my Resources Blog.
