As the saying goes, “Rome wasn’t built in a day” -- and your corporation won’t be either. There are many building blocks necessary to get all the legal documentation squared away so your company is in compliance with the state and ready to start doing business!
In our previous blog, we broke down the elements of an operating agreement and why it’s essential to your business. Like the many stone blocks used to build the Roman temples, the operating agreement is like a small brick within a larger foundation of your corporate documentation.
And, the final product? Well, it’s not quite the Colosseum, but it’s close. It’s called the corporate kit and it’s essential to the success of your corporation.
What Is a Corporate Kit?
A corporate kit is a slip case or zippered binder that holds all the company details and paperwork needed for your new corporation. Corporate kits are state-specific meaning that all of the documentation housed within the binder will be pursuant to the state in which your company was incorporated. So if you incorporate in Delaware, your kit will contain paperwork issued for Delaware companies.
Is a Corporate Kit Needed?
Yes! Consider corporate kits like the fire box you have at home that stores all your important documents. It’s a great way to keep all significant business documents organized, and if anything were to happen to you or your company, the corporate kit can be referenced in court.
What Are the Contents of a Corporate Kit?
Alright, so we've determined that a corporate kit is a binder full of paperwork that's really important to the success and well-being of your company. So important that you need it to run your business! Well, which paperwork is this exactly? Let's break it down:
Binder: Usually a large-sized binder, this will be where all your important company documents are stored.
Company Guidebook: Information on a wide variety of topics related to your corporation or LLC is included in a state-specific guidebook.
Corporate Bylaws: Created by your company’s Board of Directors, Corporate bylaws outline the structure of the company, its corporate officers, its ownership, procedures done on a daily basis and the location and time of the annual shareholder meeting. The bylaws are created by the company's Board of Directors.
Corporate Resolutions: These denote all management decisions made for your company. It is important to maintain corporate resolutions as the need arises. Before you can open a bank account, a banking resolution is usually required. Sometimes a bank will have a simple bank resolution form that can be completed and then filed with your records.
Corporate Seal: The corporate seal is generally a metal seal that includes your company's name and date and state of incorporation. It is used to imprint or emboss your corporation’s important documents, including leases, loan agreements, stock certificates, etc. The use of a corporate seal makes it clear that those documents have been agreed upon by the Board of Directors of the corporation or the management of the LLC.
Meeting Minute Book: Maintained by the corporate secretary, this houses all the minutes from company meetings.
Membership/Stock Transfer Ledger: If your company makes any changes in ownership or membership, the use of a membership.stock transfer ledger makes it easy to keep track of this information.
Membership/Stock Certificates: Membership or stock certificates can be issued to the members of your LLC or to your corporation's shareholders in order to show LLC membership or corporation ownership.
If you need assistance building your corporate kit, or have any questions about the paperwork listed above, be sure to call us at 302-996-5819 or 1-800-423-2993 and one of our incorporation specialists will be happy to help you!