“Annual Corporate Maintenance” refers to certain annual legal requirements that a Corporation must comply with so that the Stockholders may maintain the full benefits of doing business as a Corporation. If the Corporation fails to implement an effective Annual Corporate Maintenance process, then the Stockholders, including the Founders and the Investors, could lose the Limited Liability Protection and tax planning benefits associated with the Corporation.
Annual Corporate Maintenance responsibilities include:
- Holding annual Stockholder meetings to elect the Board of Directors;
- Holding annual Board of Directors meetings to appoint the Corporate Officers;
- Recording and keeping accurate Minutes of each meeting; and
- Complying with various state and federal regulatory filings.
For many Early-Stage Companies or Privately-Held Companies, it often is more efficient and cost-effective to accomplish the Annual Corporate Maintenance on paper using Written Consents.