Spring isn’t just a time for cleaning—it’s also the perfect time for corporations and LLCs to take care of important annual legal formalities. Whether you’re a solo entrepreneur or manage a growing company, your annual meeting and related documentation are essential to keeping your business compliant and protected.

What Is an Annual Meeting?

An annual meeting is a formal gathering of a corporation’s shareholders and/or board of directors, or an LLC’s members and managers, to review the company’s performance, approve important decisions, and reappoint leadership if needed.

Whether you’re running a single-member LLC or a corporation with a board and shareholders, annual meetings and proper documentation aren’t just best practices—they’re essential to maintaining the integrity and liability protection of your business. Even if you’re the sole owner of your business, holding an annual meeting—and documenting it properly—helps preserve the limited liability protection that your business entity provides. It demonstrates that your business is operating as a separate legal entity and not simply an extension of you personally.

Why These Formalities Matter

Annual meetings are not generally required to be held in LLCs as they are in corporations. However, it is still important to maintain formalities that demonstrate that the LLC is a legal entity separate from you. Many business owners form an LLC or corporation to protect their personal assets from business liabilities. But that protection only holds if the entity is treated as legally separate—and that means following corporate formalities like annual meetings, keeping minutes, and passing resolutions.

Failing to document major decisions—or neglecting these steps altogether—can open the door for “piercing the corporate veil,” a legal argument that could put your personal assets at risk.

Key Corporate Formalities to Check Off

As you prepare for your annual meeting, here are the core steps you should take:

1. Hold Your Annual Meeting

Corporations are required to hold annual meetings of shareholders and directors. LLCs (especially multi-member LLCs) are encouraged to do the same, even if it’s not required by law or your operating agreement.

2. Record Meeting Minutes or Resolutions

Document what happens at the meeting—even if you’re a sole shareholder or sole member. Minutes or written consents should capture:

• Appointment or reappointment of officers or managers
• Review and approval of financial reports
• Major business decisions or changes
• Updates to ownership, policies, or operations

3. Review and Update Company Records

Make sure your Bylaws or Operating Agreement, stock or membership ledgers, and state filings (like your Statement of Information in California) are current and accurate.

How Chase Law Group Can Help

At Chase Law Group, we work with business owners to make this process easy, efficient, and compliant. Our Annual Meeting Prep Package helps ensure your business:

• Meets required formalities
• Has properly prepared minutes and resolutions
• Updates company records and leadership documentation
• Remains in good standing and protected from liability

Don’t Let Paperwork Put Your Protection at Risk

Corporate formalities aren’t just red tape—they’re your first line of defense in a legal or financial challenge. Proactively maintaining these records helps safeguard the limited liability protections you worked hard to put in place.

Contact Chase Law Group at 310-545-7700 to schedule your annual meeting prep or learn more about our corporate compliance support.

Stay protected—schedule your annual meeting prep today.
Contact Chase Law Group

WWW.CHASELAWMB.COM
310-545-7700

_{Please note that this article is for informational purposes only and should not be considered legal advice and does constitute an attorney-client relationship. It is recommended to consult with an attorney and your insurance carrier directly for specific guidance pertaining to your business and its practices.}