What’s in Your Business Records Book?


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I was researching some tax documentation issues today, through various Q&A forums. As I was going through forums and websites, it struck me how many times I saw a question/answer that went something along the lines of “I didn’t know I had to do that until XXX (the IRS, the bank, etc.) told me I needed to. Now I’m in a mess. How do I prepare and file XXX?”

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It’s also hard to know what’s truth and what’s fiction with the sheer volume of information available on the Web today. I see this in business formations, especially. Packages that tell you they’re complete $99 kits … yet don’t mention anything about filing fees, license fees, and so on.

We had this in mind when we created the Operation Guide for Your LLC and the Operation Guide for Your Corporation. The goal with these two products was to give you the tools you needed to create complete packages, and explain what each document did for the overall structure.

UPDATE: Coming July 23/11: The 2011 Operations Guide for LLCsIn conjunction with our teleseminar on July 24th, Protect Your LLC, we’ve updated the current Operation Guide to deal with changes in the law, changes in tax practice, and best of all, new Operating Agreements, custom tailored for LLCs electing S Corporation status, C Corporation status, or being used specifically by investors wanting to claim real estate losses. If you already own the current edition of the Operations Guide, you’ll be eligible for a deep discount on your purchase of the new guide. We’ll tell you how you can get your new copy for less in the new product description.

In the meantime, here’s a quick list of the basic documents you’ll need to create a C Corporation, S Corporation or an LLC:

C Corporation

Articles of Incorporation (filed with your home state)
Bylaws
Share Certificates
Organizational Resolutions of the Directors
Organizational Resolutions of the Shareholders
IRS Tax ID Confirmation Filing Letter (this is generated when you file IRS Form SS-4, either by mail, fax, or online at the IRS website)
State Business License

S Corporation

Articles of Incorporation (filed with your home state)
Bylaws
Share Certificates
Organizational Resolutions of the Directors
Organizational Resolutions of the Shareholders
IRS Tax ID Confirmation Filing Letter (this is generated when you file IRS Form SS-4, either by mail, fax, or online at the IRS website)
IRS Form 2553 S Corporation Election
State Business License

Limited Liability Company

Articles of Organization (filed with your home state)
Operating Agreement
Member Interest Certificates
Organizational Resolutions of the Managers (if you have a Manager-Managed LLC)
Organizational Resolutions of the Members
IRS Tax ID Confirmation Filing Letter (this is generated when you file IRS Form SS-4, either by mail, fax, or online at the IRS website)
State Business License

If you’re filing your LLC as a C Corporation you’ll also need IRS Form 8832, or
If you’re filing your LLC as an S Corporation, you’ll need IRS Form 2553

With these documents, you can be sure that your business structure will have at least the minimum required to stay legal and keep you protected. The fewer of these documents you have, the more trouble your business could have surviving a challenge that it was simply an alter-ego for you, and wasn’t operating as a proper legal business.



2 Comments

  1. Excellent post thanks!

    Sent from my iPhone 4G

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