From your company’s inception and into the future, keeping records is a crucial part of your success. An organized repository allows you to readily access information related to your investors, suppliers, employees, and finances.
As a knowledgeable attorney can attest, record-keeping is essential whether you are a partnership, limited liability company (LLC), or a corporation. At Sparks Law, our lawyers are available to discuss the importance of a Connecticut corporate kit.
Business owners must file founding documents with the Connecticut Secretary of State for all businesses except sole proprietorships. These documents form the foundation of a corporate kit. In Connecticut, a corporate kit serves as a binder with the relevant paperwork, as well as a repository for all contracts, audited and unaudited financial statements, the policy handbook, and information surrounding the company’s capital raises in debt and equity.
In the beginning, the corporate kit should include:
A corporate kit maintained over time allows management to access information for shareholders, attorneys, and accountants, among others. This information is invaluable for drafting new contracts, assisting if lawsuits are filed, contributing to audits, and gleaning information to draft private placements or Securities and Exchange Commission filings.
Corporate seals are optional in Connecticut and all states, except for some professions such as architecture and engineering. Some businesses use them because they impart a professional look to corporate documents. A Connecticut attorney can advise a business owner about what to include in a corporate kit.
New business owners file paperwork after researching the company name to ensure another entity is not using it. Filing fees are also due. Businesses also register with the federal Department of Revenue for an Employer Identification Number used to open a bank account and as an identifier for withholding employee taxes for the Internal Revenue reasons. Owners then apply for county and city permits. Copies should be part of a corporate kit.
At filing, corporations are automatically designated Subchapter C. Incorporators can choose to operate as an S corporation. Information about directors is also disclosed, all of which should be organized in a corporate kit with help from a local attorney.
Business owners are not required to file corporate bylaws or LLC operating agreements with the Secretary of State. Still, they are crucial additions to a corporate kit because they disclose how the company will be managed. When the mechanics of running a business are not memorialized, disagreements often arise. A Connecticut lawyer can draft these important documents for clients to keep secure in a corporate kit.
Connecticut businesses are required to file annual reports accompanied by a filing fee between January 1 and March 31 each year. Annual reports alert the state of any changes in directors and other pertinent information. This filing should be an essential part of the corporate record book.
Establishing a corporate kit for your business is a smart move. You can access essential documents needed to run the business and answer questions when there are disagreements. No matter what your vision is for your company’s future, maintaining this repository will benefit you.
If you are ready to launch a company, or if you have been busy growing one without compiling important documents in one place, reach out to a skilled lawyer at Sparks Law. Contact our legal team to discuss your Connecticut corporate kit.