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Q.What are corporate minutes and why are they so important?
A.Corporate minutes are the records that your corporation should keep whenever a meeting of the board of directors or shareholders takes place. One of the requirements for maintaining a corporation's existence (and the limited liability protection that a corporation affords) is that the shareholders and board of directors must meet at least annually. Failure to hold annual meetings, or keep an accurate up-to-date corporate minute book, may enable the courts, I.R.S., and other taxing authorities to find you personally responsible for the debts, obligations, and actions of the corporation. In other words, failing to keep up-to-date minutes could cause you to lose the limited liability protection you sought when opting to form a corporation.
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