I think I am in trouble
Posted on September 22, 2007 in the Home Business category
Last year Mary and I decided to take our fledgling home business and convert it from a standard partnership to an LLC. Sounded like the thing to do for tax and liability reasons so we went ahead with it by using an online company to draw up our paperwork.
Everything went smoothly of course - but looking back on things now, I realize that we need some help understanding all the rules that we now must follow because of the type of business entity we are. I hate to admit that I am clueless as to the organizational legal requirements - but I found some answers at IncParadise.
I found out recently that my LLC is not in good standing with my state - most likely because I failed to have an annual meeting as stipulated by the state. The folks at IncParadise informed me that besides having an annual meeting with shareholders and directors (still necessary with just Mary and I) that we also have to keep notes (minutes) of any business decisions made. The problem if you do not do these and other things like bylaws, operating agreement is when you are audited - the IRS doesn’t care if you didn’t know the rules.
IncParadise offers a great deal of free corporation and LLC forms right on their website in addition to paid services like the preparation of company minutes. The only thing I have going for me right now is that I didn’t file taxes last year under the LLC - I started the fiscal year for this year so I wont file for the first time until ‘08. When it comes time, I will likely give them a call!
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