We’ve already discussed the importance of separating everything between the corporation and your personal affairs.  Financially, make sure you document everything when a transaction is made between the business and personal accounts.

 A tax professional can help you determine the most advantageous way to exchange funds from the corporate account to your personal one – whether it be as salary, a loan, or dividends.

 Whenever you take action on behalf of the corporation, make sure you use the title of the corporation, including its entity designation, such as Inc., or Corp., and include your title within the corporation, such as President.  Failing to do so could result in some sort of personal liability on your behalf.

 At any time, any shareholder of a corporation can ask to examine the corporation’s records and cooks – but he or she must have a good faith reason for the request.

 The person must also give notice before the date of examination and list why he wants to inspect the records, which records specifically that he wants to see, and how the purpose of his request relates to the records he wants to view.

 A shareholder has the right to allow his representatives examine the papers – such as an attorney or agent.  They may also photocopy the records.  Any records stored on some type of media other than written form must be transferred to a written or printed media.

 Corporations are usually required by state law to provide Balance Sheets – or financial statements – to its shareholders.  You’ll need to provide the end of year balance sheet, yearly income, and cash flow statement.

 Meetings must be held every year for the corporation for the shareholders and directors.  You can either make it a formal occasion or an informal one.  If you’re the sole person involved in the corporation, you can have a mental meeting, as long as you remember to record the minutes.

 As a corporation, you may be required by state law to file a bi-annual or annual corporate report.  It’s just a one-page form filed with the Secretary of State that you sign and send in that has your federal tax id number, the officers’ and directors’ names and addresses, the registered agent’s name and address, and the address of the registered office for the corporation.

 Sometimes you’ll need to send in the accompanying fee, if applicable.  If this isn’t done, then the state may dissolve the corporation after giving you notice. 

 This is the perfect time to change any corporate information that’s on file and some states will waive the additional fees if information has changed.