Preparing Meeting Minutes for Your S-Corporation
Protecting your business is easy to do by knowing the rules for corporations and abiding by them. Dot your i’s and cross your t’s. If you structure your business as an S Corporation, there are plenty of tax deduction perks. Moreover, your business is seen as its own entity. But to have these benefits, even the trivial requirements must be met. Therefore, yes, this means that even your “small business” is subject to general rules of corporations and you should be keeping meeting minutes.
Meeting minutes are an administrative prerequisite to stand up to an IRS audit of the business. They are the written record of all the actions that a business has taken. This includes the decisions leading up to that action and also the votes from each seat at the meeting. Meetings require a quorum to be met or a minimum number of people to be present. A condition, according to state law, for S Corporations is to hold meetings with shareholders, directors, and officers, and document the minutes of those meetings. There is a minimum requirement to have one minutes meeting per year. Ultimately, there is no rule as to when this one meeting must happen, but corporations can choose to have additional or special meetings when issues arise that need immediate action.
Meeting Minutes With Consistency
There is no template requirement for writing minute meetings, but it is a great idea to do it the same way each time. You can hand write the minutes or type it into a software like Microsoft Word. Within your minutes, remember to not have bias in your language. State the facts and note decisions. Moreover, here are some key points of content to hit during your meeting minutes recordings:
1. Place of meeting
2. Date and time of meeting
3. The attendees of the meeting and who did not attend
4. Matters discussed. Give details on these
5. The topic of a vote and the outcome
6. How long the meeting lasted
7. The author of documentation
Your business is important to us at Paragon Accounting and Tax Solutions. We work side-by-side with you on your accounting duties so you can be IRS compliant. Therefore, don’t try to do it all alone. Let our expert CPAs guide you towards tax saving benefits every year. We love to work with local companies in Woodstock, GA; Canton, GA; Marietta, GA; Alpharetta, GA; Milton, GA; Kennesaw, GA; and Acworth, GA.