I’ve set up my LLC, got the registration, the bank account, EIN number and tax ID, but what nobody told me was that I was missing two crucial items. LLCs are not valid with out a company record book and an annual meeting! From what I have recently learned about these two necessary tools, I have a a basic Q&A about the record book and annual meeting.
So what exactly does this mean?
Well, first the company record book. What you need in this is your important LLC business documents. This includes your LLC registration certificate and any additional amendments you have. This can literally be a binder with papers clipped into them or a nice folder.
Whats an LLC amendment?
I had a company address amendment submitted so I have one amendment. Any changes that you need to make to the original LLC business registration such as who are the LLC owners or the mailing address or company location are all items that need to be amended. It costs around $35 to submit an amendment.
What documents do you keep in your record book?
In addition to your LLC registration and amendments, you would include your other documents including your EIN number and tax id. To keep everything together you may also include your banking information. I choose to keep that separate. Then you want to make sure after each year of filing, you put your tax records in this record book. Your annual meeting record needs to go in this as well, more details shortly.
Do I need a business plan?
If you also have a business plan or other similar documents that would constitute goals, a strategic plan or other business related goals, include those as well. Do you need one to have a valid record book? No, but a business plan is always good.
What do you do at your own annual meeting?
The annual meeting is just that. You need to have a meeting for your LLC once a year. It was suggested to me that during this meeting you file last years tax forms into your binder and go over and business changes or the annual goals.
When is a good time to hold your meeting?
Since I typically strategic plan in July and I created my LLC around that time, I am going to do goal setting and business structuring during my annual meeting. Other people will do them in January or annual taxes are filed. The time of your annual should fit you and your business best, but there needs to be one meeting each year.
How do I prove I had this meeting?
With meeting minutes! Yes you need to document that. Date of meeting, time of meeting, the discussion points you went over. Type this up nicely and file this in your record book also.
Who can come to the meeting?
I’ve mentioned this necessary annual meeting to a few people and they have actually sparked interest in attending. Ask around, you never know who may be interested in attending your meeting. I would keep it minimal, people who support you and understand your business. Be sure to withhold important information that may not be necessary to share. If you don’t want to share your annual meeting with anyone then you don’t have to. This doesn’t mean that you sit in a room by yourself and talk out loud, just track your time and what you do and go over.
The company record book and the annual meeting are still very new to me. I will blog and share about them more in the future as I work with them myself. Feel free to share any tips and insights on LLCs by commenting below!