Did you know that your corporation is required by law to have an annual meeting? And the only way you can prove you had that meeting is to be able to produce minutes of the meeting?
Yep, it’s true. And if you fail to produce minutes of your annual meeting, you don’t get the write-off for the costs associated with the meeting. Or, let’s put it this way, you’re going to have a very hard time proving it if the IRS asks. After all, one of the hallmarks of being able to take deductions with your business is that you must run your business in a business-like manner.
And that means keeping good records. If you don’t track what you’ve done throughout the year, ratify the actions of the officers, approve significant changes such as change of bank, new loans, large asset protections or even a new medical insurance company, then you might not be able to take the deductions.
That’s because the IRS is quite rightly going to question if you are really serious about your business.
Just because I’m saying annual meeting here it doesn’t mean that you are limited to just one meeting per year. You can actually have, and probably should, have more than one meeting in a year. Just make sure that you’re properly recording what you need to in your official minutes.
And remember, the cost of your annual meeting (or more frequent) is deductible. Just make sure you have the annual minutes to back up the deduction.
Need some help composing your minutes or knowing what needs to be in them? Then you definitely want to check out The 60-Minute Handbook.
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