With the close of another year comes the need to make sure that your business is up to date. Check back in your records from the past few months for these key items that corporations and other business entities must complete. If you did not do them yet, now is the time to schedule required meetings and submit reports.
Annual Meetings
Corporations must hold annual shareholder meetings. The primary activity at a shareholder meeting should be electing the board of directors for the next year. In addition, some companies ask shareholders to vote on important issues affecting all shareholders, such as a sale of the company, at the annual meeting.
In smaller corporations, the directors are often the only shareholders, so annual shareholder meetings are mostly a formality. No matter the size of the corporation, you should hold a meeting and have someone take down minutes to keep in your business’s records.
Corporations also need to hold an annual meeting of the board of directors. Some corporations’ boards meet much more frequently than this, but at least once a year is mandatory.
Limited liability companies and partnerships usually have no legal requirement to hold an annual meeting, but often the organizational documents require one. It is good to meet at least once a year to go over major business issue. All of the partners, members and/or managers should assemble for the meeting.
Annual Reports
A corporation needs to prepare an annual report that explains its financial situation to the shareholders. Usually the report includes statements of income, cash flow, and financial position. The report should be audited before it is released to shareholders. In most cases, this is a legal requirement that must be completed every year. Even if it is not mandatory, it is a very good idea to keep the shareholders informed.
Limited liability companies must file annual reports with the states in which they are formed. Most often, the reports only need to include information about the LLCs’ industry, managers, and agent for service of process. Many LLCs, however, have operating agreements that require more complicated annual reports similar to those that a corporation creates.
Tax Time
For many companies, the end of the year means that it is time to think about taxes. Ensure that your business pays any taxes due to local, state, and federal taxing authorities. If you operate across state lines, you may need to pay taxes in several locations for this tax year.
Are you in need of a lawyer to help you keep your business up to date? Norris Law Group’s attorneys advise clients on the advantages of various legal entities and help them start doing business the right way. Contact Norris Law Group today by emailing Norris Law Group attorneys, calling (801) 932-1238, or visiting the Utah or Wyoming offices.
