Maintaining a corporate records book is important for legal and strategic purposes in running a business. This is to make sure that nothing is overlooked by staying on top of things while carrying out administrative tasks. It also ensures the protection of your personal assets against creditors and lawsuits in the event that your business is sued. This would also show your compliance with state laws.
A detailed corporate records book would provide a good impression in the event you decide to sell your business. A poorly maintained and incomplete records could lower your company’s value.
In summary, there are 3 important things that have to be done in order to Maintain a Corporate Records Book:
Maintain Organizational Documents
Maintain Tax and Financial Records
Keep Records of Corporate Minutes
Here are the guidelines that you can easily follow starting with the process of maintaining a corporate records book.
Incorporating in the State of Nevada requires adherence to the regulations concerning corporate record-keeping requirements which are published on the Nevada Secretary of the State’s website.
Most states require these documents to be ready and open for inspection by the state officials and corporate directors, and some of these records are part of the requirements by banks, IRS, and licensing authorities.
Make sure to have a detailed breakdown of the documents that must be kept with the help of an attorney in organizing your corporation.
Organize Copies of State Documents
The articles of incorporation and bylaws of your company are considered as your corporation’s constitutional documents.
This has to be filed with the Nevada Secretary of State (or the Secretary of State where your company is incorporated)
This also has to be kept maintained at your corporate headquarters and a copy to be kept by your registered agent as the mediator between your business and the secretary of state.
In addition, annual reports and filings required by the state where your business is incorporated as well as other states where you operate must be included.
Update the Information list of Directors and Officers
Your list of former and current directors and officers must be updated annually or as necessary for instances that an accounting of the changes is required. Your list must include the following information:
Full Legal Names of each Director
Full Legal Names of each Officer
The Addresses of all Directors and Officers and
Other pertinent contact details
Keep copies of transactions with Shareholders
All forms of letters and other official transactions with the company and its shareholders must be included in your corporate records as proof of your compliance with notice requirements. These documents include:
Required Notices to Shareholders
Large Sales of Stock
Reclassification of Shares
And All forms of communicationas long as the issue at hand is still in effect and have ongoing relevance to the company must be kept for at least three years.
Maintaining organization documents is part of all the important things that must be done in maintaining your corporate records book. In addition, you would also have to take care of tax and financial records as well as records of corporate minutes.