Starting a business requires its owners and partners to maintain a company records book so they can effectively manage their business. A company records book is a compilation of all vital corporate papers. It includes Articles of Incorporation, By-Laws, minutes of meetings, stock certifications, stock certificate ledger, stock transfer documents, and stock certificate stubs. Keep these documents in your company’s main office. A company records book has five sections, with each section compiling specific company information.
Here is a step-by-step guide on how to create a company records book for your Las Vegas business
Step 1: Prepare Company Creation Files
The first section of your corporate records book includes all documents pertaining to the creation of the company. This consists of the original corporation filing papers. It must have the filing date and the proof of payment for applications and related expenses. If you can, request a certificate of good standing from the state and include it in this section. Make sure also to keep here the Articles of Incorporation and any amendments filed. The by-laws would go in this section as well. Essentially, anything related to how the company started should be here.
Files included here are IRS Forms SS-4, 2553, and 8832, state and local business licenses and permits, and other state employer registrations.
Step 2: Keep Records of Resolutions and Minutes of Meetings
The minutes of the company’s very first meeting to form the company should be in the second section of your company records book. This must consist of election proceedings for company officers and directors. If there were any original resolutions and agreements discussed, include them here as well. This section two of your company records book must be kept open to include future meetings, elections, and resignations.
Step 3: Secure Stock Certificates
For a corporation, stock certificates are essential for running the business. Make sure that they are filed in the third section of your company records book. All stock certificates must have ownership details, date of issue, and name of the recipient.
Shareholder rights, voting agreements, and resolution agreements must be filed in this section as well. Any changes in the number of shares, prices, and the owner should have a record of each transaction in this section.
Step 4: Create a Loan and Insurance Record
If the corporation received loans or grants from any members or directors of the corporation, the file would go here. All resolutions, contracts, and binding agreements must be recorded in this fourth section. Make sure to include all information about accountants, legal persons, insurance agents, and other individual entities who were material for carrying out the transaction.
Step 5: Record Policy Resolutions
A corporation often undergoes changes to adapt to the evolving company needs. All these changes in policies, significant purchases, expansion details, termination of service must be legally written down as a resolution and be kept in the fifth section of your company records book. Make sure that each of these resolutions has the corporate seal or is notarized.
Maintaining a proper company records book is vital in keeping your business operations running smoothly. Should you need to go back and review any of your policies, you never have to worry about missing documents. A solidly prepared company records book is also your ally when it comes to lawsuits.