The 3 Most Important Corporate Formalities
Although filing as a corporation or LLC helps limit your personal liability, merely incorporating by registering your business with the Ohio Secretary of State isn’t the only requirement you need to follow to protect yourself. Legal requirements – officially called “corporate formalities” – are the rules set by the State of Ohio that a business must follow to become a formal legal entity. Failure to observe corporate formalities can lead to significant legal issues, including potential allegations by others to “pierce the corporate veil,” a legal claim recognized by Ohio courts.
All Ohio corporations and LLCs – regardless of size, type of entity, or age – are required to follow corporate formalities. A single-owner LLC is
just as responsible as a billion dollar corporation in the eyes of the law.
The 3 most important corporate formalities every Ohio corporation must follow:
1. All companies must have corporate governance documents. i.e., bylaws (for corporations) or operating agreements (LLCs).
2. All corporations must hold annual meetings with their board of directors and all LLCs should hold annual meetings.
3. All corporations must record written minutes of these annual meetings. LLCs should record written minutes. There are additional corporate formalities with which your corporation or LLC should comply; however, they often depend on your company’s situation.
Wells Law has two packages to help busy companies comply with corporate formalities:
#1: Our annual minutes package includes a 30 minute phone interview, a review of your current legal status and filing information, and drafting of a written Annual Meeting Minutes document you will then file in your corporate book.
Normally $325 for single-owner LLCs/corporations and $500 for multi-owner LLCs, we are offering a special discount now through the end of 2019: $250 for single-owner LLCs/corporations and $425 for multi-owner LLCs/corporations.
#2: Do you have a business entity but no corporate book? Wells Law, LLC will create the entire corporate book for your company, ensuring all the corporate formalities are being observed – only $200! To learn more about what is included in the book, contact us!
Email us by Dec. 31, 2019, to lock in the discounted rate. Discount is only available to businesses who engage our services for the preparation of annual minutes by Dec. 31, 2019.