Every Limited Liability Company (LLC) should make a point to have regular meetings. These meetings do not have to be major events – but they should be written. Even taking notes on the back of a napkin will suffice, just be sure to write it down and keep it. Without question, every LLC must hold an organizational meeting – this is critical. It is at the organizational meeting that the LLC members will adopt the LLC’s operating agreement, appoint a manager, ratify actions, etc. This step is often overlooked – and it should not be.
Why should an LLC hold regular meetings?
First and foremost, so that the LLC can maintain its limited liability status. Proper recordkeeping and adhering to corporate formalities is of the utmost importance in maintaining proper form – and maintaining limited liability. If an LLC fails to maintain its corporate form, its member will lose their protection from liability – and their assets, even personal assets, will be exposed.
How Regular Should an LLC have meetings?
Well, that depends on the size and growth of the Company. Certainly, an LLC should hold a meeting no less than once a year. An annual meeting is important to keep the LLC’s attorney and accountant involved and abreast of the company’s positions. Items such as members who have left, or have joined the LLC are important topics for the annual meeting. Our Boulder LLC Lawyers recommend no less than an annual meeting – and that generally works from many Colorado companies. Yet, some of our LLC clients prefer monthly one to two hour meetings with our lawyers present. This also helps growing companies take time away from a busy office to discuss important company issues with legal counsel. Either approach can work, and we are here to help.
Boulder LLC Lawyers
The Boulder LLC Lawyers at LaszloLaw are dedicated to advising entrepreneurs on the formation and growth of their companies. Our Boulder LLC Lawyers will help you choose the appropriate legal entity and place of business, including assisting you in protecting personal and business assets and intellectual property; reviewing and negotiating contracts, non-disclosure agreements (NDAs); secure investment capital; and create distribution, vendor, independent contractor and employee agreements. Contact our Boulder LLC Lawyers today at 303-926-0410.