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Often, when people call to inquire about forming an LLC or corporation in Delaware, they are unsure of which formation package they should purchase and unaware of the benefits of the extra features.
In sales, extra features are often used to entice the customer to purchase the more expensive option. In many instances, you may never even use any of the extra tools you purchased. This can be frustrating and understandably make you question the notion of extra features.
We include a Corporate Kit as one of the extra features in our Standard package, and we want to let you know that you are truly getting great value for your money.
We are not interested in pushing you to purchase unnecessary items or the most expensive package.
The Corporate Kit offers useful tools that you may find beneficial in running your startup company. We want to assure you of the benefits you will receive if you opt to purchase the formation package that includes the Company Kit; we want you to feel confident in moving forward with your purchase.
The following are key components of the Company Kit for an LLC or corporation, and the benefits of each:
You receive the Gold Embossed Company Binder with a Standard Package purchase. Our clients are often impressed by the professional and elegant binder, which provides a safe place to store and organize all your important company documents.
“Great, thank you. I received the Company binder today in mail from FedEx, looks very nice. Good job.” – ByteSurge LLC
People often call us and ask how they can show ownership in an LLC since the only information required to be filed with the state of Delaware is the name of the LLC and the name and address of the Registered Agent. We also have people who wonder what complicated process they will need to go through in order to remove or change members within their LLC.
The hard copy of an Operating Agreement Template included in the Company Kit is a very useful tool in helping you define ownership, management and the day-to-day activities for your LLC. The Operating Agreement is a written agreement among the members that is not required to be publicly filed or disclosed to the Delaware Division of Corporations.
As a result, an LLC allows for confidentiality and the ability to create a customized management structure, which prescribes the economic relationship among owners. The Operating Agreement can be written in any language and typically is not required to be translated into English.
The beauty of the Operating Agreement is that it is a convenient internal document that can be modified and updated as often as you'd like. We do not need to know about it, nor does the state of Delaware. Any changes you need to make within your company are documented and updated solely by you and your members. However, remember that an LLC Operating Agreement is a binding contract among the members and you must have the unanimous consent of the members to change it.
The Company Kit also includes a hard copy of corporate bylaws. Typically, the Board of Directors of a corporation creates this vital document. The bylaws are a clear and concise definition of the structure of your corporation, and include identification of the directors and officers of the corporation as well as their duties and responsibilities.
The bylaws also define the day-to-day procedures of the company. Bylaws are composed of data such as names and information of the directors and the date, time and location of the annual shareholder meeting. If you need to make changes to the structure of your corporation, such as adding or removing directors or officers, the state of Delaware does not need to know about these changes. Corporate changes are typically made internally, and then the information is listed in the Delaware corporation annual report.
The only time we need to know about any changes is if you change your company address or the primary communications contact person we have on file. We want to make sure the correct person at your company receives all important documents, bills and notices from the Secretary of State in a timely manner. You should also notify us if you need to change the amount of authorized stock for your company.
The Company Kit also includes a template for your organizational resolutions. This document is kept on file and represents official decisions made collectively, by all members. The decisions authorized by all members can be presented with this written document in court, if necessary. Typically, you would keep this document with the LLC or corporation business records after all members have agreed to it and signed it.
Often, organizational resolutions are required for obtaining additional services. Proof of your resolutions is often required to assign authorization in order to open a bank account.
In addition, if you are looking to obtain a loan through a financial institution on behalf of the LLC or corporation, it may also be presented as a proposal to the lender. When and why you would need this document depends on who you are working with and the type of action you are seeking. However, it is an important piece of the Company Kit that can be beneficial in various ways.
The Delaware Company Guidebook is the perfect resource included in the Company Kit that may very well answer a majority of your questions related to your Delaware LLC or corporation. The Guidebook covers many different topics in an effort to facilitate running your company, from tax issues to record keeping and overall management of the company.
Membership and stock certificates are also included in the Company Kit, along with a Stock Transfer Ledger. The ten certificates included in the Company Kit are official, professional and secure, with high-quality security features such as watermarks, embedded fibers and void pantograph backgrounds.
The stock certificates may be issued to the members of the LLC or to the shareholders within a corporation. The LLC Membership Certificates display ownership described through the units or percentage owned by each member.
A corporation's stock certificates demonstrate the number of shares issued to the shareholder, thus displaying ownership within the corporation. These stock certificates can be easily managed through the Stock Transfer Ledger as you add, remove or transfer ownership among existing or new members. These documents are also internal and can be managed however you feel best suits your company.
The Corporation Tickler is an asset used to help owners remember when certain things need to be done. It’s also a great place to keep track of all vital information for your corporation. This allows you to keep up to date records on the identity, addresses, and information of shareholders, directors, the president, vice president, secretary, treasurer, as well as any other officers of the corporation.
Need to know when to hold the next annual meeting or the fiscal year end for the corporation? It’s all right here: Up-to-date contact information for the company’s registered agent, accountant, attorney, banker, insurance broker, etc. can also be recorded on the Corporation Tickler—even something as simple as the location of the company seal, if it’s often recorded. You don’t want get caught in a jam when you are in need of this invaluable corporate information. Keep everything up-to-date on the Corporation Tickler, and keep it in a safe place.
As you can see, our Corporate Kit is fully equipped with useful tools in order to help you achieve success in your new business ventures.
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.
There is 1 comment left for Benefits of a Company KitAurangzeb Shereef said: Tuesday, July 10, 2018
How do I order a corporation binder for my C-Corporation?HBS Staff replied: Wednesday, July 11, 2018
You can call us at 1-800-345-2677, Ext. 6911 and a live person will assist you.