When you first started your business, you probably never took any real notes of your meetings with your partners. Everything was handled verbally or over email.
Well, times change. Now that you’ve grown, you have a lot more rules you have to follow. Once you incorporate, there are some definite “housekeeping” tasks that are important when it comes to complying with governmental regulations.
To avoid problems, you likely need to keep more extensive records once you establish your business as a corporation or limited liability company (LLC). Federal, state and local laws alike may require you to keep the following:
- Your organizational documents, including any partnership agreements, articles of incorporation, amendments and bylaws for your company
- Records of any capital contributions by each member of your company or partnership and their ownership rights
- Records of any important changes that are made to your company’s operating methods
- Information or “minutes” about your leadership meetings or board of directors’ meetings and documentation about any actions taken as a result of those meetings
- Clear documentation regarding any stock transfers or major business purchases or sales
- Your tax records and payroll records and timesheets
Typically, an LLC will have fewer regulatory requirements and paperwork than a corporation, but the record-keeping may seem overwhelming if you’re used to operating without it.
Most developing businesses struggle with regulatory compliance issues when they first start out. It isn’t always easy to understand what you need to do — or keep — for the future. To protect your interests, it’s wise to have an experienced attorney’s assistance as you move forward.