Business Owners, Don’t Leave Yourself Exposed

The details matter!

Do you know where your Corporate Book is right now? Some of you may wonder where it is, and others may wonder WHAT it is? Your Company Book is where you keep the legal records of your business. It is where you record the history of your company and document the actions taken by its directors, officers or managers.

Your Focus Can Be Limited

As a business owner you are focused on Your Business: customers, service, products, cost, profits, bank account balances, just to name a few, maybe not your Company Book. When you set up your company, you probably checked it off you to do list, and were happy be done with it and be able to move on to the things that make money. However a key item to think about is keeping up with your Company Book. Questions to ask yourself today:

1) You may have two or more companies that do business with one another. Did the company buy or sell any assets? to third parties or to related companies? Did you document these transactions in your company minutes? Are you having meetings to approve your companies actions, or do you just do it?

2) Throughout the year(s) you may have paid for certain personal items with your business or perhaps paid for business items from your personal account or another business account.  Your company may have leased a property from you.

3) Have you asked yourself “What’s in your Company Binder?”

Avoid Disaster

You can avoid this potential disaster by keeping up with your Entity Binder. It is important to document your company activities (and in some cases non-activities) in a proper, coordinated and complete manner. Rely on a professional familiar with the importance of Entity Maintenance, it often involves more than minutes to properly document a transaction, without leaving holes that can be attacked or challenged.

Entity Maintenance involves documentation of the business of your entity. In law “if it is not in writing it did not happen” can cause problems and increase pressure when things go wrong. In a lawsuit or an IRS audit, one of the first things you will be asked for is your Entity Binder. Not having it up to date will create cracks in the armor of the Asset Protection Entity. When you don’t have proper documentation to substantiate the business activities, you leave it up to interpretation, the interpretation of a jury or an IRS agent. The potential loss could be financially catastrophic.

Optimize Your Time

You can work on this yourself, or you can hire a qualified law firm to handle these documents for you. We have recently launched our new, comprehensive service to help you optimize your team and leave the paperwork to us. If you would like to take some time to find out more about our new Business Minder Pro Plan service, click on this link below or contact us today to discuss further by calling 830-302-4577 in New Braunfels and click here to learn more about The Business Minder Pro Plan Service.