Legal Documents Business Owners Should Update Annually

Keeping up with corporate records should be near the top of every business owner’s annual to-do list. That’s because proper recordkeeping helps business owners maintain the corporate veil of protection he or she may need against lawsuits and creditors.

Below is a list of the legal documents business owners should update annually:

Meeting minutes – Businesses that conduct shareholder or board meetings are required to keep meeting minutes so that an official account of decisions is recorded. Minutes should be regularly looked over and include basic information such as the time, date, and place of the meeting.

Annual reports - Businesses that incorporate as an LLC or corporation are required to file an annual report, which should include basic information regarding the business including its name, address, and registered agent. Any changes made to the business should be recorded on the annual report to keep the business in compliance.

Operating agreements – Owners of LLCs should make sure their operating agreements reflect updated information about their members, taxes, activities, and membership. Financial, capital, and transfer provisions should also be recorded.

Bylaws – Created for corporations, bylaws serve as the company’s rules. Update bylaws by including the number and duties of the directors, how directors are elected, how meetings are organized, and more.

Employee handbooks – An employee handbook contains company policies and provides employees with a clear understanding of the procedures, rules, and expectations. Topics include standards of conduct, overtime, payroll, employee classifications, security and safety, appearance, disciplinary action, industry regulations, harassment and bullying, drug and alcohol policies, and more.

Additional corporate records business owners should update annually:

• Articles of incorporation;
• Amendments filed with the state;
• Renewals of assumed names; and
• Stock ledgers.

Maintaining up-to-date records will not only keep your business compliant with Michigan law, but it should keep your corporate veil unscathed. Inaccurate maintenance of company records can turn the simplest of corporate transactions into a costly experience.

Help is available

The business attorneys at O’Reilly Rancilio are available to answer your questions and help update your corporate records. To speak with an attorney, please call 586-726-1000 or visit our website.