How do the minutes matter to a San Diego corporation including an LLC, S Corporation, C Corporation or Professional Corporation? Large corporate entities understand the importance of corporate governance and compliance, but many small businesses unfortunately leave small formalities unattended which ultimately come back to hurt them down the road.
The primary reason you have a corporate entity in the first place is to separate you (and your spouse) as an individual from the risks, liabilities and debts of your company. We often remind our clients under California law corporations are essentially people too. There are many regular activities which all San Diego corporate owners must accomplish to protect the “corporate veil” which separates the individual owner(s) from the entity in the eyes of the law and creditors.
It only takes a small amount of time to complete important corporate tasks. The minutes matter to a San Diego corporation and memorializing the “minutes” of regular corporate meetings can go a long way to preserving important protections under California corporate law. The business and corporate attorneys at the Watkins Firm help our clients to accomplish these important aspects of corporate housekeeping.
The minutes is simply a written record of important meetings, discussions, planning, policies and resolutions. Your corporate entity should hold regular meetings which discuss the state of the company and any important actions or transactions. For example, you should capture a written record which summarizes important aspects of any asset purchase or sale, election/re-election of corporate offices or board members, business valuation(s), a summary of important loans, leases and/or transactions as well as any distributions, bonuses or changes to executive compensation.
These “minutes” provide valuable evidence that your entity exists in the eyes of the law and are an important ingredient in the governance and compliance required to protect your corporate entity. The minutes matter to a San Diego corporation and the experienced San Diego corporate attorneys at the Watkins Firm can help to make sure you are taking all of the right steps to protect the corporate veil. We invite you to review the strong recommendations of our clients and the legal industry and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
