Ongoing formalities made easy
While C corporations and S corporations face the strictest ongoing formalities, limited liability companies (LLCs), limited partnerships (LPs), limited liability partnerships (LLPs) and nonprofits should also take steps to protect their entity status. A Compliance Kit & Seal includes items to make this process easy.
Why it’s important
Below is a list of ongoing formalities that corporations must follow and that are also recommended for LLCs, LPs and LLPs. The Compliance Kit & Seal can assist with each of these.
- Create and regularly update bylaws (corporations), an operating agreement (LLCs), or a partnership agreement (LPs/LLPs).
- Hold and properly document an initial meeting of directors (corporations), shareholders (corporations), members/managers (LLCs), or partners (LPs/LLPs).
- Hold and properly document annual meetings of directors (corporations), shareholders (corporations), members/managers (LLCs), or partners (LPs/LLPs).
- Issue ownership certificates (stock certificates, membership certificates or partnership certificates) to all owners.
- Record any changes in percentage of ownership, any new owners added, etc. in a stock (corporations), membership interest (LLC), or partnership interest (LPs/LLPs) in a transfer ledger.
Features & benefits
Our Compliance Kit & Seal includes:
- Customized binder. A professional binder enclosed in a matching slip-case and customized with your company's name on the spine.
- Seal. A hand-held corporate/LLC/partnership seal used for stamping documents with your company’s name, state and year of incorporation.
- Ownership certificates. 10 custom, numbered, stock (corporations), membership (LLCs) or partnership (LPs/LLPs) certificates printed with your company’s name to designate ownership interest in the company.
- Ownership transfer ledger. A stock/membership interest/partnership interest transfer ledger to keep accurate records of ownership amount information.
- Sample internal governance document. Sample bylaws (corporation), operating agreement (LLCs), or partnership agreement (LPs/LLPs), which outlines how the company will be managed and will address certain situations.
Small business owners often have little time to dedicate to ongoing formalities and to undertake compliance events. The Compliance Kit & Seal not only makes this process easier, but also provides the vehicle for storing your records. Business Compliance Requirements & Consequences
Keep in Mind
A number of corporate compliance events are required shortly after incorporating a business, such as holding the initial meeting of directors, adopting bylaws and issuing stock. LLCs, LPs, and LLPs are also encouraged to adopt an operating or partnership agreement and issue ownership interest. Steps to Take After Incorporation