Meetings, Notices, Minutes, and Votes, OH MY! Yes, these are some of the awesome wonders of running a corporation! So why exactly do you need to follow such corporate formalities?
Well, because it helps foster transparency with corporate record keeping and this is always a winner! Keeping track of important corporate decisions helps reduce headaches down the line in case things get a little ‘lawsuity’ and most importantly, adds a level of understanding to the success (or do-overs) of business decisions made over time.
Maintaining a record on whom did what (and when) is essential to the growth of your business because you know what decisions worked and what directions did not. Also, a benefit to incorporating is that you are trying to separate your personal liability from the liability of your company- but in order for that to occur, you need to actually make that happen! One way to accomplish this is to observe the formalities of record keeping! For example, in your meeting minutes, you do not need to record every single word or hand gesture, but major business decisions and important topics should be well documented and easy to pull if need be down the line.
Hence, yes, it may seem like a needless task to call a Corporate Meeting when the Co-Founders are your brother, sister, and college roommate, but it is key to keeping all corporate formalities and liabilities in tact and accounted for. Typing up the topics discussed and vote tallies at your meeting (Corporate Minutes) is an example of how your business can continue to thrive (while complying with the formalities of corporate life).
Bottom line: From full-scale corporations to solo shops, keeping in tune with corporate formalities is for everyone seeking to run a successful business. Start early, it will save you some headaches down the line.
Remember: Do not post detailed and confidential information here, this is a public forum and if you want to keep your secrets a secret (and confidential), keep it private! Also, an attorney-client relationship is not at all established here, this blog is just for informational purposes- so let’s keep it that way!