Limited liability entities- such as corporations and limited liability companies- require basic maintenance. Yet, amazingly, a large percentage of Indiana corporations and Indiana LLC’s are not updated by management or owners. What they risk by failing to upkeep these entities is nothing less than having a court ignore the “corporate shield” by applying liability directly on the owners of the corporation or LLC.
It is not expensive or hard to maintain an Indiana corporation or Indiana LLC. The necessary tasks should begin with a visit to your business attorney, CPA and insurance agent. However, those are just the three most important tasks to complete. There are several others.
Here is a short list of important tasks to complete regularly:
- Visit your Indiana business attorney to review the corporate records and status of the business.
- Visit your CPA for a review of the financial health of the company.
- Visit your insurance agent to contact a full insurance review.
- Hold an annual meeting of the owners- members in an LLC and shareholders in a corporation. Elect LLC-managers or corporate directors at these meetings.
- Hold an annual meeting of the directors in a corporation. Elect officers at this meeting.
- Create minutes of all annual meetings.
- File biennial reports with the Secretary of State.
- Update an assumed business names with appropriate filings with the Secretary of State and county recorder.
- Remind officers and key personnel on the appropriate operations of a limited liability entity.
- Review all contracts, processes and procedures that might lead to liabilities.
- Conduct a risk audit, which should include a physical inspection of your business facilities.
Of course, each business has unique needs, but this list generally applies to businesses of all types and sizes. If the Griffith Law Group can help you create or preserve the “corporate shield” of your business, please contact us.