legal Eagle Straight-forward legal tips for Military and Veteran Business Owners By Kelly Bagla, Esq.
END OF YEAR LEGAL CHECKLIST FOR ALL BUSINESSES
At this meeting, you’ll also reappoint the directors and the directors reappoint the officer. To stay compliant with corporate law, it’s important that you treat your corporation separately from yourself and holding annual minutes is one way of complying with the law.
The year is quickly coming to an end and as a small business owner, you’re probably already thinking about the new year and all of the exciting projects you have lined up. But before you get in too deep with future plans, be sure that your business is currently in good standing before the year ends. Here are some important steps to complete on your end of year legal checklist: ANNUAL MEETING: If you’re a corporation, it’s important that you hold an annual meeting before the year ends, if you have not done so already. This is where you make important decisions for the year and make sure the shareholders and board members are all on the same page. An important part of holding annual meetings is recordkeeping through corporate minutes. These minutes summarize what’s been decided and what’s been discussed at these meetings. Each state has its own code sections for your business to comply with so make sure you are listing the right code section in your corporate minutes.
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WWW.SanDiegoVeteransMagazine.com / DECEMBER 2021
STATEMENT OF INFORMATION: A Statement of Information is usually required from all business entities in most states. The Statement of Information is filed with your state’s Secretary of State and contains updates on important information about your business, including the names of your directors, members, and registered agent. If your state requires you to file a Statement of Information, there is usually a specific due date (usually the anniversary of your business’s incorporate date). If you miss this filing, you can be subject to penalties and late fees. OWNERSHIP: With the global pandemic we all have experienced, no doubt your business has been affected too where you may have undergone a number of internal changes, such as co-owners leaving, retiring or simply took a reduced salary. Your company’s governing documents should be updated to accurately memorialize any changes in ownership, including any new or revised agreements between owners.
