Corporate Annual Minutes are LEGALLY REQUIRED in California for all corporations (C-Corp, S-Corp), and strongly recommended for LLCs with multiple members. If you do not maintain them, your corporation can lose its "corporate veil protection" — the legal shield that protects your personal assets from business debts. Bilingual, $99 per year.
All corporations (C-Corp, S-Corp) MUST have annual Corporate Minutes by California legal requirement (Corporations Code §1500). LLCs with multiple members are not required to but should maintain them anyway. Minutes document: annual shareholder/member meetings, important decisions (loans, large contracts, profit distributions), changes in directors or officers, authorizations of significant expenses. Without Minutes, in litigation, a plaintiff can argue "alter ego" and attack your personal assets.
Corporations Code §1500 requires every California corporation to: (1) hold an annual shareholders meeting, (2) hold director meetings per the Bylaws, and (3) maintain a Minute Book with records of ALL corporate decisions. The Franchise Tax Board and Secretary of State can request to see these records. MOST IMPORTANTLY: if a court determines you do not maintain corporate formalities, it can declare "alter ego" — meaning limited liability protection DISAPPEARS and your personal assets are exposed.
Three consequences: (1) the court can declare "alter ego" and allow plaintiffs to attack your personal assets, (2) the IRS can challenge deductions for expenses not formally authorized, (3) the Franchise Tax Board can fine you in an audit.
MINIMUM one annual shareholder/member meeting (with Minutes). Plus any important decision (loan, large equipment purchase, executive hire) should be documented in special meeting minutes.
Yes. Even in a single-shareholder corporation, you must maintain annual Minutes and document important decisions. Without them, you lose corporate protection.
Yes. California allows that instead of a meeting, all shareholders/directors sign a "Unanimous Written Consent" documenting the decisions. Our package includes this template.
$99 per year. Compared to losing corporate protection in litigation (potentially hundreds of thousands of dollars), it is the best investment you can make.
Multi Servicios 360 is a self-help legal document preparation platform. We are not a law firm and do not provide legal advice.
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