To protect themselves against liability for company debts, new business owners create business entities. These can be limited liability companies (LLCs), corporations, or corporations. You must maintain that little liability protection by completing certain filings each year.
1. You must file an annual report if you are a corporation,
LLC, or another state. It must be filed online in New Jersey and due by the last day of the month you first incorporated. If you have formed or incorporated your LLC on January 15, 2015, you must file your annual reports by January 31, 2016. This is necessary to ensure that the Division of Revenue has current information about the company’s mailing addresses, officers, directors, or members, as well as the name and address of any registered agents. When you file your annual reports, there is an additional fee. If your company is licensed to do business in more states than one, you will need to file annual reports in each of those states and pay the fee.
2. All corporations must hold annual meetings of shareholders and directors.
Even if you’re the sole shareholder or director, these annual meetings must be kept. You should also have written minutes from each session to prove it occurred.
Annual meetings are not mandatory for LLCs. However, it is a good idea to hold them. If you want the world to know that your LLC is independent of you, you should take every step possible to prove it. Even if you are the only member of the LLC, you must keep written minutes of any “meetings” and ratify any actions taken by the “managing member” during the preceding year. If the company issued, it is helpful to have written minutes of all meetings.
3. To ensure that stock certificates have been issued as required,
that any stock certificates that show a transfer of ownership have been given, and that the stock ledger remains current, you should inspect your stock ledger at least once per year. This will make it easy for anyone to see who is the owner of your company’s books.
4. If you are in an industry that requires licensing,
ensure that all employees have a valid license. Unlicensed individuals can pose a severe risk to your business.
5. Your company must have workers’ compensation insurance.
Workers’ compensation insurance must be purchased if your company is a corporation. If your LLC is not a corporation, workers comp is not necessary.
6. Make sure your company files all tax filings.
Ask your accountant if sales taxes or payroll taxes must be collected and forwarded.
Your business will avoid unnecessary costs and liabilities by keeping it in order and current with all its requirements. If you’re looking for financing, auditing, selling your company, or need to be away from it for any reason, you will need documentation. Consult a professional if you need assistance with any of these tasks.