As we near the end of 2019, it is time to hold your annual meeting.
Corporate entities are formed, in part, to protect an individual’s assets from the liabilities of the business. To help defend against a creditor trying to “pierce the corporate veil”, the first step is to keep up the corporate formalities. Corporate formalities include the organizational documents and minutes for special and annual meetings. Also, recent legal changes put business owners at risk for larger financial penalties assessed by the Texas Comptroller if Texas Franchise Reports and Franchise Taxes are not timely filed and paid.
At a minimum, the following action items are required:
- Hold a 2019 Annual Meeting for your corporate entity;
- Memorialize the meeting with properly drafted and executed Annual Meeting Minutes; and
- Ensure that the company’s 2018 Texas Franchise Tax Report and Public Information Report were both filed, Franchise Taxes were paid (if due), and that you are in good standing with both the Texas Comptroller and Secretary of State.
We understand that the next few months can be busy with the holidays and other end-of-year duties, but please make it a priority to call our office to schedule a meeting or telephone conference to discuss your corporate maintenance requirements.
If you have any questions regarding personal estate planning, corporate succession planning, or any other related issues, we can cover that during your end-of-year meeting or telephone conference as well. You may also visit our website at www.ws-law.com for more information on the services we offer.
The legal information in this blog entry is not intended to be a substitute for seeking personalized legal advice from an attorney licensed to practice in your jurisdiction. Further, nothing contained in this article is intended to create an attorney-client relationship with any reader. This article and website are made available by Waldron & Schneider for educational purposes only and to give basic information and a general understanding of the law, not to provide specific legal advice. By using this website you understand that there is no attorney-client relationship between you and Waldron & Schneider. The article and website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. For more information or questions you can contact us and one of our attorneys will be in touch soon.