While many of our Customers have formed corporations, some are unaware of the basic requirements which must be fulfilled in order to correctly maintain the corporation. This report is meant to point out some of the requirements and is intended for a general audience, applies to corporations organized in California, and does not constitute legal counsel. Like all legal issues, you should consult a lawyer concerning your specific situation.
Employer Identification Number
Every corporation Filing a state or federal tax or informational return must have an employer identification number An EIN is the company’s social security number and it is used by banks and other businesses as an identification number. The EIN is usually applied for by the lawyer who incorporates the company, the organization’s accountant or its payroll company.
The corporate secretarial service singapore must have its own bank account into which all income must be deposited and expenses paid. The tests should be published with the full company name and any trade name it is using. To open this account you generally only need a copy of the Articles of Incorporation and your EIN. Since the passing of the Patriot Act, there are additional regulations which might require the lender to request additional documents or information.
If you are unable to do so, a creditor may have the ability to discount the company and pursue the individual investors’ assets to be able to satisfy the obligations and debts of the corporation. This sort of liability is popularly known as alter ego liability To put it differently, the legislation will impose liability against the shareholders since there’s absolutely not any separateness between them and the company trading service singapore. Apparently, this would be a poor result for the shareholders.
So as to avoid These negative impacts, the corporation must bear in mind these points.
- Corporate Records
Specifically, the Corporation must hold annual meetings of their shareholders and annual Meetings of the Board of Directors. These can be real meetings with the Required quorum, or they may be held on paper. What this means is A document called a Unanimous Written Consent in Lieu of Meeting is drafted and implemented by all persons who are required to be at that meeting?