Corporate Record Book Overview
A corporate record book keeps all important paperwork in one place. It includes articles of incorporation, bylaws, meeting minutes, ownership details, and more. The book tracks financial performance, major transactions, and must retain tax records for up to 7 years.
Financial Records and Statements
The corporate books prepare financial statements crucial to investors. They help in decision-making and reporting to shareholders and creditors. Additionally, the books hold articles of incorporation and bylaws.
Record Keeping and Storage
Traditionally in physical binders, corporate records books are now often stored digitally or on cloud platforms. Scanned invoices serve as records if accurate, complete, and readable. Resolutions are documented for board decisions on contracts and transactions.
Most states mandate LLCs and corporations to maintain specific records. This practice ensures compliance and good standing. Necessary records encompass formation documents, ownership details, and capital contribution accounting. Shareholders and creditors have the right to request information.
Always make copies of essential documents and store them securely, either with a lawyer or in a safe place. These backups are crucial in emergencies. The corporate record book preserves official decisions and actions over time, supporting transparency and compliance efforts.