If you or your attorney have formed your business and filed your documents with the public record of your state(s), whether it is an LLC, a PLLC, an Inc. or a Corp., you were probably asked if you wanted a corporate kit. What is a corporate kit and as a small to medium sized business, do I need one?
A corporate kit is a repository and record book for your corporation or limited liability company. The corporate kit serves as a filing cabinet for your company’s formation paperwork, houses the corporate seal, licenses, resolutions, and meeting minutes. The benefit of having a corporate kit is so that when your accountant, lawyer, or investors need documents associated with your company, you have them at your fingertips!
So, what is in the corporate kit?
- Corporate Seal: This tool is used to ‘seal’ all your LLC’s or corporation’s documents, when required.
- Membership/Stock Certificates: These certificates can be issued to the members of your LLC or the shareholders of your corporation for membership or ownership in the company.
- Corporate Resolutions: documenting decisions made by the company.
- Corporate Bylaws/LLC Operating Agreement: Bylaws and Operating Agreements detail the the structure of the business, the officers, ownership, and other housekeeping functions.
Still confused? Contact your attorney or accountant for assistance in selecting a corporate kit as well as insuring your company’s documentation is in order. It can be a lifesaver down the road.