Annual Meeting LLC Really Necessary? | Palma Financial

There are more cases where the Limited Liability Company (LLC) is “pierced” in a lawsuit, and a plaintiff grabs the owner’s assets. The reason why…owners are not doing their annual maintenance such as annual meeting LLC.

Now it doesn’t have to be expensive; it can be easy. It can also:

  • Increase your audit protection with the IRS
  • Get you more tax write-offs
  • Help you create a Board of Advisors for support
  • Better build your business and increase sales
  • And, of course, give you the asset protection you THINK you have!

Small business owners, if you have an LLC or S-Corp, you MUST do the following every year or face having no asset protection or even having your entity TERMINATED by the State:

  • Have a complete formation of the company with all the supporting documents
  • Hold annual meetings and record them in the corporate book
  • Renew your entity with the proper Secretary of State
  • File any necessary state and federal tax filings (including quarterly payroll reports)

Here are the pieces you should have with your LLC:

  • Articles of Organization (filed with the State)
  • Operating Agreement between the Members and Manager
  • Organizational Resolution of the Members
  • Corporate Book
  • Membership Certificates and Seal or Seals
  • EIN IRS Application

What do Annual meetings and Records look like for my LLC?

The general purpose of meetings, minutes, and resolutions is to document and authorize acts taken by an entity; company meetings can accomplish several other essential goals that we feel are critical to a business’s long-term success.

They can be typed up by the business owner themselves, even handwritten; HOWEVER, the important thing is to do them, create the documentation, and put them in your corporate book. It’s easy and affordable to make sure you hold your annual Member and Manager Meetings.

The annual maintenance will:

  • Strengthen the corporate veil and asset protection
  • Document goals and objectives of the business
  • Structure tax planning and establish bookkeeping procedures
  • Create an excellent reason for a tax-deductible trip (at least annually)
  • Increase communication between the business owners
  • Involve the family members and teach them about the operations of the business

The annual maintenance of your company will ensure you maintain the legal and tax benefits.

Book Your Free Tax Assessment Here.