Have You Had Your Annual Corporate Checkup?

With a birthday coming up this spring (a birthday north of 40), my attention starts to turn to the annual tune-up at the doctor’s office. After an embarrassing wait in a drafty “robe” and being intimately checked out by my doctor, I get the usual news: lose 20 pounds, get more sleep, drink less, and limit stress in my life. The same attention that one should pay to your own health should be given to your company. Every company needs an annual checkup, particularly with its attorney and CPA. You should be prepared to meaningfully discuss at the least the following topics:

• Have there been any changes in ownership or plans to change ownership (such as an employee buying part of the company)?
• Have any owners or key employees died or become ill or incapacitated? Succession planning always needs to be on an owner’s mind.
• What are the company’s real estate plans and needs? For example, are any leases coming up for renewal or extension?
• Do the company records accurately reflect all major company events, purchases, or changes? Were such events properly authorized and are reflected as a company action in the corporate minutes?
• Are your corporate records and filings up to date? Make sure you’ve filed an annual public information report with the Texas Secretary of State and your company’s franchise tax statement (even if no tax is due) with the Texas Comptroller.

These are only a few of the topics you should discuss with your CPA and attorney on a regular basis. Much like your general practitioner, your corporate professionals exist to keep you and your company operating on a sound basis so you can do what you do best, run a profitable company.

If you or your company would like a free consultation on these or any issues, contact me at mmurrah @mktxlaw.com.