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McHenry County Corporate Records Maintenance Lawyers

Crystal Lake corporate records attorney

Illinois Corporate Law Attorneys Helping Clients Throughout the Northwest Suburbs and Chicago

A corporation is a distinct legal entity that must remain separate from its owners. Its income, assets, and debts are its own. The owners, commonly known as shareholders or stockholders, are not personally responsible for them.

Since a corporation is a unique legal entity, the law requires the owners, board of directors, and officers to abide by a number of formalities, including accurate and in-depth record keeping. Upholding all of these rules can be difficult, which is why corporations rely heavily on experienced advisers like our corporate law attorneys at Botto Gilbert Lancaster, PC.

Corporations Must Remain Separate From Their Owners

Since a corporate entity protects its owners from liability, it must remain a wholly separate business. The corporation's shareholders, directors, and officers must make decisions based on what is best for the business and not themselves. If the owners and the business are too closely intertwined, then a court may find that the corporation is just a thin veil covering the owners' actions that are meant to benefit themselves. In this situation, the owners may not benefit from limited liability.

Illinois Corporate Law

Corporations formed in Illinois must adhere to the Business Corporation Act, among other laws, which dictate business formation requirements, the rights and duties of shareholders, directors, and officers, corporate records, how corporations may dissolve, and more. If you are considering forming a corporation, you should work with one of our experienced corporate law attorneys to ensure you understand the law and complexities of this type of legal entity.

Corporate Formalities

To ensure the business remains distinct from its owners and officers, certain formalities must be maintained, including:

  • Articles of incorporation, which are the documents filed with the government to legally form the entity. They include the business's name, purpose, agent's information, and the amount and type of stock to be issued.
  • Bylaws, which provide for the internal management structure of the corporation as well as the rights and duties of shareholders, directors, and officers. These determine how certain positions are chosen and how disputes should be settled. Corporate bylaws are adopted and can be amended overtime.
  • Annual shareholder meetings, which should be provided for in the bylaws.
  • Annual board of directors meetings, which should be provided for in the bylaws and are usually shortly after the yearly shareholders meeting.
  • Special meetings for when the board of directors or stockholders must make more significant business decisions.
  • Shareholder, board, and special meeting records, including the minutes, topics discussed, and outcome of votes.
  • Accurate financial records, including a balance sheet, income statement, cash flow statement, and statement of stockholders' equity.

Corporate Records Maintenance

To retain proof that the business is distinct from its owners, directors, and officers, it must consistently create and preserve in-depth records of its transactions and finances. Even if the corporation has run smoothly and within the law, problems can arise if the proper documentation has not been kept over the years. Without appropriate corporate records maintenance, the owners, directors, and officers could become liable for the business's actions and debts.

Contact Our McHenry County Corporate Law Attorneys Today

Our experienced corporate law attorneys can help your corporation abide by these tough record keeping standards. We can assist your business in creating the management structure and internal processes needed to automatically generate the appropriate records. We can also help you create a system to properly store the paper and electronic records you must keep for years to come. Contact us today at 815-338-3838.

Illinois State Bar Association State Bar of Wisconsin Crystal Lake Chamber of Commerce Illinois Trial Lawyers Association McHenry County Bar Association
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