Annual Meetings

Corporations are required to have annual meetings. LLCs (limited liability companies) can, and should have annual meetings.

During those meetings, you and your directors or officers should ratify decisions made during the year. Some of the things you’ll want to discuss include:

• Any changes that occurred or will occur in ownership,
• Any changes in operation,
• Moved the office,
• Made changes in tax structure for your business,
  Sold significant assets,
• Started business in another state,
  Entered into a joint venture,
• Started or terminated pension plan,
  Made distributions to members or shareholders
• Etc.

Your minutes should reflect all of those relevant topics and show that you discussed them.

Why Do You Need Annual Minutes?

If you get sued, the litigating attorney will want to see your minutes. If the IRS audits you, the IRS will ask to see your minutes.

They are looking for proof that you are NOT operating in a business-like manner. If they can prove that, you lose your corporate veil and you’re fair game for anyone who wants to sue you. And if you’re not operating properly, the IRS can deny your business deductions.

The minutes prove you had the required meetings.

Tax Write-Offs from Annual Meetings

You don’t need to have your annual meeting in the backroom of your office. You can go somewhere else. If you do, part or all of your travel, lodging, transportation and meals will be deductible.

If you combine the trip with some vacation, you’ll need to apportion some of the expenses so it won’t all be deductible. But still, some write-off is better than no write-off!

Can You Have Multiple Meetings?

The answer is, absolutely. And yes, the expenses associated with more than one legitimate business meeting a year will be deductible as well.

It’s very common for larger companies to have quarterly meetings. There’s no reason why you can’t as well.

If you have further questions give us a call at (402) 932-8815 and we’d be happy to help!

Sincerely,

W. E. Stevens, PC

Serving our clients with focused intentionality, professionalism, and timeliness