It’s the start of a new year and a good time to review your corporate records to ensure that you have fulfilled your legal requirements and that the records reflect the current state of your business. The following are a few of documents that you should review periodically or if you don’t have them, consider whether you need them:
- Annual renewals: Georgia and many other states require an annual filing with the Secretary of State. In Georgia, annual renewals are due between January 1 and April 1.
- Meeting Minutes: Do your bylaws or operating agreement require an annual meeting? Did you have one in 2015? If so, did you prepare minutes of the meeting?
- Operating Agreement / Shareholders Agreement: Have you entered into an agreement with your partners that governs the operation of the business? If so, review the document and consider the following questions:
- Does the agreement include provisions to buy the other partners out in the event of retirement, death, disability, etc.?
- If so, are the provisions included in the agreement reasonable given the current state of the business?
- Do the payment provisions work, i.e., if the agreement requires payment over 3 years, is the cash flow of the business sufficient to make the payments and still provide an income to the remaining partners?
- Does the agreement require you to personally guarantee any buyout of your partners?
- Is the valuation or method of valuation still relevant and reasonable?
At Grissom Law, we work with small business owners to ensure that their corporate records up to date and that the provisions in them are appropriate. Each business is unique and this article only provides a brief, general introduction. For more detailed information and to discuss your specific case, call us today at (678)781-9230 or email us at firstname.lastname@example.org to schedule an appointment.
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