When you form a new entity, you have requirements for documentation and filing on an annual basis. You have to do annual minutes for the board of directors’ meeting and for the shareholders’ meeting. You have a filing with the state telling them who your officers are every year and you have your tax returns in many states that have to be filed on a quarterly or annual basis. If you don’t make these filings, the taxing authorities come after you. In terms of your corporate requirements for minutes, if you don’t do the minutes, it looks like you’re not acting as a corporation, you can get issues of piercing the corporate veil or shareholder issues where shareholders say that you haven’t done what you were supposed to do. Make sure that all of these filings are done in a timely fashion. If you’re not sure what they are, your accountant and/or your attorney should be able to tell you.
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