Businesses structured as corporations or limited liability companies (LLCs) must maintain accurate records of their compliance actions. One key requirement is documenting their annual general meeting (AGM), commonly known as the annual shareholder meeting.
Who Needs to Hold an Annual Meeting?
Most states require C corporations (including those taxed as S corporations) to hold an annual shareholder meeting. Additionally, they must convene their board of directors at least once a year.
For LLCs, the requirement varies:
- LLCs are not always required to hold annual meetings unless mandated by their LLC Operating Agreement.
- If an LLC elects S Corp tax status, it follows the same rules as a standard LLC—meaning an annual meeting is only required if the state or LLC Operating Agreement mandates it.
Why Are Meeting Minutes Important?
Recording accurate meeting minutes is crucial for maintaining an LLC or corporation’s good standing and preserving the limited liability protection that shields business owners from personal liability.
Best Practices for Keeping Meeting Minutes
- Document Key Decisions – Record votes, approvals, and discussions on major business matters.
- Include Attendees & Date – List everyone present and the date of the meeting.
- Summarize Discussions – Keep records concise but detailed enough to reflect decisions made.
- Store Securely – Retain minutes as part of your company’s corporate records for legal and compliance purposes.
Companies must submit their annual meeting minutes along with other corporate records by year-end to remain compliant.
Ask an Estate Planning Attorney Today
Need help with corporate compliance or business structuring? Visit Hudack Law Estate Planning Attorney to learn more. We proudly serve California, Utah, and Arizona. Call our toll-free at (877) 314-4309 to schedule a consultation.