Contributed by Sara Zaro, EA
Elite Bookkeeping & Tax Services
When the IRS conducts an audit on a Corporation, the agent will ask for the corporate record book. The Agent will review organizational documents, meeting minutes, stock ledger and resolutions.
If these documents are not kept current, the IRS can determine that you are running your business as a Sole Proprietor and change the taxation rules for your business. This could have a large tax impact on the owners of the business as some of the tax deductions taken as a corporation are not allowed as a sole proprietor.
This could result in higher personal income tax along with self employment tax before penalties and interest are added, which add up quickly. In some cases thousands of dollars have been owed by the owners because of poor record keeping of the corporation.
Corporate record keeping is just as important as filing the tax return, preparing the necessary minutes and resolutions annually makes the task relatively simple.
To obtain a Record Book for your Corporation or LLC use the order forms at the links below. If you need assistance with updating your records, call our office.
CORPORATION
LLC
For more information, visit our website at http://www.aaacorpservices.com/ Toll Free: (800) 891-5987 Outside the US: (307) 635-8700 Fax number:(307) 635-1300
Friday, September 27, 2013
Thursday, September 12, 2013
Articles of Amendment
Before you file an Amendment to the Articles with the Secretary of State you have a couple things to consider:
• You will need signed Special Meeting Minutes and a Resolution in your book reflecting that the Board met and voted in favor of the Amendment.
• If you are changing the name of your corporation you will need to then update your corporate record book. You will need the new name on the book, the stock certificates & corporate seal.
You will also need to notify your bank, vendors and customers of the new name.
• If you are changing the amount or par value of the corporations stock you will need to replace and reissue stock certificates reflecting the current amount of stock/par value.
As always, record keeping is the life of your corporation. Any changes in the corporation need to be documented with a meeting, vote, minutes and a resolution. All need to be signed and placed in your corporate book behind the “Minutes” tab along with all your Annual Minutes in chronological order.
Should you need assistance with filing an Amendment or obtaining replacement stock certificates, etc. give us a call. We'll be happy to help.
For more information, visit our website at http://www.aaacorpservices.com/ Toll Free: (800) 891-5987 Outside the US: (307) 635-8700 Fax number:(307) 635-1300
• You will need signed Special Meeting Minutes and a Resolution in your book reflecting that the Board met and voted in favor of the Amendment.
• If you are changing the name of your corporation you will need to then update your corporate record book. You will need the new name on the book, the stock certificates & corporate seal.
You will also need to notify your bank, vendors and customers of the new name.
• If you are changing the amount or par value of the corporations stock you will need to replace and reissue stock certificates reflecting the current amount of stock/par value.
As always, record keeping is the life of your corporation. Any changes in the corporation need to be documented with a meeting, vote, minutes and a resolution. All need to be signed and placed in your corporate book behind the “Minutes” tab along with all your Annual Minutes in chronological order.
Should you need assistance with filing an Amendment or obtaining replacement stock certificates, etc. give us a call. We'll be happy to help.
For more information, visit our website at http://www.aaacorpservices.com/ Toll Free: (800) 891-5987 Outside the US: (307) 635-8700 Fax number:(307) 635-1300
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