Quote from @Charley Gates:
Hi Tam.
There is no statutory or case law requirement for LLCs to have annual meeting minutes.
Having said that, I definitely create annual meeting minutes for my LLCs for the following reasons:
1) it's fairly straightforward to do
2) it shows that you are following corporate formalities which strengthen the legitimacy of the LLC
3) it makes it more difficult for a creditor to 'pierce the corporate veil' meaning the creditor argues that the LLC is really just a proxy for you and thus tries to pursue you personally for damages
I also recommend that each LLC has its own bank account and that funds are never mixed between companies.
Hope that this helps!
Charley, thank you for posting this. As I dip a toe or two into the LLC world, I was wondering the same thing as the OP (@Tam Nguyen). Also trying to lay out best practices for transferring money from personal to LLC checking. My initial feel is this should be done as a loan from me to my (single member) LLC. That would keep the funding monies from being considered profit.
So figuring this out from what I've read thus far, I would need to charge an interest rate on the loan (perhaps something nominal like 1% or 0.1%), work up a generic loan document that would state the terms and such. Would I even need to have this notarized or simply documented in my files, along with monthly interest payments? Generic documents seem to suffice.
Thoughts?
