Updating corporate minutes
Despite the proliferation of electronic files, physical copies of minutes and consents are still typically kept in three-ring binders or those confounded hard red books.
Neither Wisconsin nor Delaware laws require that minutes be kept in original, hard copy.
Corporate minutes can help by spelling out the reasons your company needs to retain funds – for example, to purchase assets or for working capital.
Does your company have a tax-qualified retirement or a stock option plan?
An Ontario company is formed with the preparation and filing of documents with the Ministry called Articles of Incorporation.
The articles set out some important details about the make-up of the company including The answers to the questions above vary according to the specific requirements of each individual’s situation.
Well-documented corporate minutes can provide valuable supporting evidence if the IRS questions choices you make on your tax returns.
Minutes are especially important when related-party transactions are involved, such as payments, loans, or distributions between the company and you or other owners.
The best solution depends on how a company weighs the below factors.A well-drafted agreement sets out clear rules that define the relationship between the shareholders and outlines how the corporation will be controlled and managed.It can serve as a useful tool in dispute resolution and allows the shareholders to control who continues to be a shareholder and to place restrictions on new shareholders coming into the corporation.For example, the IRS may challenge the amount of your compensation.Corporate minutes that document the factors considered by the board in approving the compensation can be a defense against this type of challenge.