Record Keeping Basics
Tools for record keeping
Audit proof your business - Internal records
Summary of required documents
Shareholders of a corporation must hold shareholder meeting once a year. It is important to have an agenda when calling a meeting even if you are the only attendee.
An agenda communicates the purpose and importance of the meeting and keeps everyone on tasks. Think of agenda as the schedule for the meeting. Possible topics for discussions are:
- Election of board member and shareholders
- Election of officers
- Retainer of accountant
- Financial matters including distributions
- Officers’ salaries and bonuses
- Reimbursement of business expenses paid with personal funds
- Capital requirements and contributions
- Loans to corporation
- Large purchases and leases
- Any other important business issues
Minutes are the official record of a formal meeting. All stockholder meetings should keep minutes. The secretary is responsible for making sure minutes are taken at the meeting. If you are the only shareholder then you are responsible for keeping the minutes. The minutes are the official record of what actually took place in the meeting. The minutes should be filed in the same manner you file important corporate documents.
Failure to hold meetings and keep minutes puts you in violation of the corporate governance formalities required by your state. Having your CPA and or legal counsel aboard is often a good idea when important issues beyond the expertise of the shareholder are to be discussed.
Be sure to get the annual planning template to assist you:
Shareholders of a corporation must hold shareholder meeting once a year. Even if you are not a corporation, having an annual meeting is a great way to look at the rear view mirror and make good plans. The annual meeting is a great way to document important decisions such as:
- Owners compensation
- Distributions/ dividends
- Capital needs
- Employee benefits.
- Notice template
- Calculators for owners compensation, distributions and capital needs
- Financial review - historical performance
- Strategy template
- Promissory note template