Everyone remembers to prepare for their company’s taxes at the end of the year. This time of year is also a great opportunity to audit your company’s legal formalities. Small businesses often forget this crucial review and it causes their owners problems and unneeded expenses later in the year.
First, you should review your company’s existence in the state where it’s organized. If you have let your company’s existence lapse, you are in danger of losing the liability shield provided for your personal assets. To maintain your company’s existence, you should update with the state your registered agent’s information. You should also confirm that all taxes, fines, and penalties have been paid in full and on time. Additionally, in Texas you will need to file your annual Public Information Report to update the information on the company’s owners and managing persons.
Second, you will want to ensure that your company is registered to do business in every state in which it conducts business. Often, business operations expand during the year and many owners miss this corporate nicety. If the company is not registered to do business in a state, it will not be able to access the state’s courts to enforce its rights. It’s possible that the failure to register could result in fines. Ultimately, if those fines are not paid the state may revoke the company’s existence.
Third, if your company is organized as a corporation, there are additional legal requirements that must be performed. You will need to hold (in person or by written consent) a meeting of your stockholders. They will elect the directors for the year who will in turn appoint the company’s officers. While basic, it is easy to forget these annual formalities.
The attorneys at Hammerle Finley Law Firm are experienced in all these matters and stand ready to assist you. Reach out today to schedule a consultation, 972-436-9300.