Business Compliance and Recordkeeping

Lawsuit Audit Protection Service

What is the Lawsuit Audit Protection Service? When you formed your Corporation or LLC you were given asset protection and tax savings. However, these benefits only exist if your company follows specific rules of operation. This is referred to as Corporate and LLC compliance. These rules state that your company needs to “act” like a Corporation or LLC. Your company is acting properly when it does resolutions and minutes consistently. Follow these rules and you have all the benefits that Corporations and LLC promise. Disregard these rules, and you lose all the benefits.

Our program is the most comprehensive, hands on compliance and recordkeeping program in the industry. We provide you with your own personal Document Specialist who will contact you every two weeks to customize and prepare all resolutions and minutes for your company. This ensures your companies proper compliance. We can also assist you with the reconstruction of your company records if you have not historically been meeting this responsibility. In addition, we provide an extensive program of continuing education, videos, newsletters, webinars, and individual business coaching for all our compliance clients.

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Additional Education and Information

What is Business Entity Compliance?

Entity compliance is the rules and regulations that Corporation’s and LLC’s are required to follow. When you formed your company you were given unique benefits. But to keep these benefits you must “act” like a Corporation and LLC. Compliance ensures that you are following the proper rules of operation. If you want to be treated like a Corporation or LLC, your company needs to “act” like one.

How do I Create a Voice for My Company?

Corporation’s and LLC’s are considered to be separate legal people. Whenever the company makes a major decision, that decision needs to be recorded as a resolution. A resolution is the “voice” of your separate person. There are 3 types of resolutions; minute, free standing, and policy resolutions. What happens if your company does not create a voice? That is how an owner can lose their liability protection and tax benefits.

What is Piercing the Corporate Veil?

When you form a Corporation or LLC you are told that you will have liability protection. But if your company does not “act” the right way then someone can try and take that protection away from you. This is called “piercing the corporate veil.” Piercing of the corporate veil means your company is not in compliance, and the owner will now be personally liable for the actions of the company.

How Do I Fix My Prior Years Records?

If you have not always maintained proper recordkeeping for your company, you are allowed to go back and fix it. This process of documenting your prior decision is called “reconstruction”. The general rules are; you are allowed to go back and fix your records as long as you are not currently being sued or audit; never back date your historical decisions; and always sign reconstructed documents using the current date.

How do I Create Annual Minutes and Meetings?

Each year your company is required to have an annual meeting on or about the anniversary date of your formation. The formalities here include notice, elections, appointments, and acceptances. All of this must be in writing and in your record book. It may sound silly, especially for one owner Corporations and LLC’s. But a failure to meet this minimum compliance requirement will result in a loss of liability protection.

What is the Importance of Issuing Ownership?

One of the most common mistakes business owners can make when they form a Corporation or LLC is to not issue the ownership certificates. But there can be a variety of strategies that can be implemented here to help minimize taxes! Whether it is stock or membership, these certificates begin the process of proving separation. Ownership can be issued to you, to your spouse, to your children, and even to a trust.

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