Records
Corporate records and corporate kits
Good records support owner protection. A kit is a binder and seal; what matters is keeping the records current.
Keep your articles, operating agreement or bylaws, ownership records, consents or minutes for major decisions, election letters, annual lists and licenses organized and up to date.
A corporate kit is a physical binder, often with a seal and certificates. It can help with organization, but it is optional. The value is in recording decisions as they happen.
Separate business and personal finances, and sign contracts in the company name with your title.
Checklist
- Store formation documents and the operating agreement
- Record ownership changes in writing
- Document major decisions with consents or minutes
- Keep the IRS election acceptance and annual lists
- Use a separate business bank account
Common misconceptions
- Myth: Buying a corporate kit keeps my company in compliance.
- Reality: Compliance comes from timely filings and accurate records, not the binder itself.