The management of a company is no easy task, and the same is required for the corporate documents that are needed for the day to day running of the corporation. A corporation is established in line with the state of incorporation laws. Corporations are required to maintain their records for a minimum of six years. The records are proof that the corporation is carrying out its activities in line with the shareholders and board of directors directives.
Corporate Documents Needed
The different types of corporate documents needed by the firm include:
- Article of corporation
This is the main document after incorporation of the firm. It has the corporation name. It also has the address of each of the members forming the corporation, the corporation registered office location, and the name of the agent at the time of registration. It is proof that the firm exists. It contains the purpose of the corporation and the powers of the corporation. It also gives authority for stock capitalization. It should be filed with the secretary of state after the payment of a given fee, and it should also be signed by the incorporators. Before the corporation is established, the corporates come up with by-laws, and they have a meeting of the directors and incorporates, for the election of officers.
- Certificate of incorporation
This is issued by the secretary of state, and he does so after signing and declaring that the corporation is a legal entity after it is incorporated.
- Consent of agent
This serves the incorporation process for the jurisdiction on the location of the incorporation of the firm.
- Amendments and by-laws
These are the by-laws and amendments of articles of incorporation that are important for the successful running of the organization.
- Secretary certificates, agreements and letters
The letters are addressed to the shareholders, and there are also other letters which the directors used for registration, other documents include the shareholder’s agreements and secretary certificates. All these should be kept safely by the firm.
- Stock ledger and share certificates
These documents give information regarding the shareholders. They also provide the date of shares, names, and address of the shareholders and the date the shares were issued. The documents also have signatures that show the shareholders acknowledged the receipt of the certificates. The stock ledger of the firm shows exactly who the owner of the corporation shares is. The firm has to constantly update the stock ledger in case of shares transfer or any other activity regarding the shares is done. Such activities include the receipt of shares as a gift from a shareholder, in case the shareholder passes away and the shares are transferred, or in case of joint ownership of shares and one of the owner becomes the single owner of the shared shares.
- Legal documents
Legal documents include tax renewal documents, annual meetings documents, reports of the firm, license renewal documents. There are also other documents that are related to the renting of the firm assets, purchasing of supplies, employees, bankruptcy filing and litigation among others.
- Financial documents
The firm is expected to file its financial records and have a current balance sheet. The P&L account is another financial document that must be well kept. Other financial documents should be filled and kept safely such as records of payment and bank statements. Other documents are divided documents that show the dividend agreed upon by the shareholders and board of directors and also include the rejected and accepted quorum.
- Other essential documents
These include the meeting minutes, notices, the consent in lieu documents, the waivers of notices, and the list of shareholders that attend different meetings, the stock subscription agreement among other essential documents.
Why You Need An Attorney
If you are in the process of registering a corporation, you might have a lot of questions regarding these documents, and you might not find it easy to draft and file all the necessary documents to get your corporation up and running. Hiring an attorney can be the best decision for you. An attorney ensures that they cover all the legal bases and allow your new corporation to run smoothly.
Another benefit of hiring a lawyer is that it saves you money and effort. You do not have to wait until you become a party to a lawsuit to hire one. If you wait until you are served with papers, you will pay much more lawyer fees, court costs and even settlement fees.
An attorney also saves you time. For instance, most experienced attorneys will assist you prepare your articles of corporation and ensure they have the minimum information needed.
If you wish to register your corporation in Huston, having the proper documents required for a corporate is a key step on your firm’s path for success. Consider contacting an experienced business attorney from RunRex.com who will give you all the legal advice you might need and ensure that your firm complies with the Huston state legal requirements.