With a legal entity comes great responsibility! As the shareholder/member (i.e. owner) of your legal entity, it’s up to you to ensure that your legal entity is complying with each of its annual legal obligations. Different States may impose slightly different requirements for LLCs vs. S Corporations vs. C Corporations vs. Partnerships, but we find that generally, most States and legal entities have some standard annual requirements.
Here is a quick checklist of some of your legal entity’s potential annual requirements:
1. Check when your annual report is due in the state where your business is incorporated and any state where your company is registered to do business.
2. Is your legal entity required to have an annual meeting of shareholders or directors? Make sure to check your operating agreement or state law for requirements, and make sure you've had your meeting for the year!
3. Don't forget to write and record minutes at your annual meeting.
4. Make sure you've completed any required annual resolutions/written consents.
5. Get financial documents, P&L, bookkeeping records organized to prepare for upcoming tax filings.
Keeping on top of your legal entity’s annual obligations on a year-to-year basis is critical. Not doing so could cost you thousands of dollars in legal fees in the future when you inevitably need to get your corporate governance up to date. You could even risk losing the legal protection your legal entity gives you if a court finds that you have pierced the corporate veil because you have not been complying with your annual obligations.
Don’t let this happen to you! Please contact Serna Legal Services at 312-601-9859 or info@sernalegalservices.com if you’re ready to work with a legal partner that will help you oversee your legal entity’s annual obligations so that you can focus on scaling your business!
This content is published by Serna Legal Services, LLC and is available for informational purposes only and is not considered legal advice on any subject matter. By viewing this content, the reader understands there is no attorney-client relationship between the reader and the publisher. The content should not be used as a substitute for legal advice from a licensed professional attorney, and readers are urged to consult their own legal counsel on any specific legal questions concerning a specific situation.