If you own a corporation (whether it is a C or S corporation), it is important to keep good records on actions taken by shareholders and/or your board of directors at their meetings. The reason: If your corporation fails to act like a corporation, creditors can “pierce the corporate veil” and hold you personally liable. Retain these records in the corporate minutes book.
The following is a listing of key votes that should be taken for tax actions. Some apply only to C corporations, while others apply to both C and S corporations.
Adopting a fiscal year.
Adopting an accounting procedure for the de minimis safe harbor rule (see Chapter 14).
Adopting any of the following employee benefit plans:
Adoption assistance plan.
Deferred compensation plan.
Educational assistance plan.
Employee stock ownership plan (ESOP).
Group legal services plan.
Medical reimbursement plan.
Qualified retirement plan.
Stock option plan.
Authorizing a sale/leaseback transaction.
Authorizing compensation and bonuses to employees (including shareholder-employees) and payments to corporate directors. To justify ...