What Records Should a Texas Business Keep?

Record keeping is a daunting and (most of the time)Meeting.
boring task. However, if you want an organized9. Shareholder Proxy (general).
business and would like to see how your business10. Shareholder Proxy for a Particular Purpose.
fares on a very competitive market, you have to be11. Shareholder Proxy with Limitation of Authority.
a pack rat in some ways. In Texas, an organized3. Records Pertaining to Meetings of the Board of
business is not only easy to manage but sells quickly,Directors - The meeting of Board of Directors is, in
too. When the time comes you have decided tobusiness sense, much more important than the
move forward with your other business ventures,shareholders' meeting. The members of the Board
records can help you with your sales pitch andare the persons who actually run the business. Unlike
successfully sell your old business.shareholders, the Board of Directors determines and
What should you keep?executes corporate policies. Therefore, it is a
1. Receipts and invoices - All businesses--whether it isnecessity to keep all records pertaining to meetings
a sole proprietorship, a partnership or aof the Board of Directors. These records are the
corporation--will benefit greatly from a well-keptbasis of changes in corporate policies, products or
records of purchases, expenses, sales and evenservice cancellations or launching of new products or
cancelled checks. Collecting these receipts andservice.
keeping a record of them in a ledger will help in (1)The following is a list of some of the forms and
preparing tax returns, (2)foreseeing how the businessdocuments that a Texas business should keep:
will progress, say in three years or five years time,1. Notices of Regular Meeting of Board of Directors.
and (2) eventually in deciding where to cut costs and2. Declarations of Service of Notice of Meeting of
which of the available business strategies should itBoard of Directors.
take.3. Call of Special Meeting of Board of Directors.
2. Records Pertaining to Annual Meetings of4. Notice of Special Meeting of Board of Directors.
Shareholders - Under the law, a corporation should5. Minutes of Regular Meeting of Board of Directors.
hold a regular annual meeting of shareholders for the6. Minutes of Special Meeting of Board of Directors.
purposes of electing Board of Directors and for7. Approval of minutes of Board of Directors by
shareholders to hear the report about the businessabsent directors;
situation of the corporation. Is the business winning?8. Resolutions of the Board of Directors.
Or losing? This meeting helps a shareholder determine9. Secretary's certificate of adoption of any
whether the business is flourishing or is on the vergeresolutions by the Board of Directors;
of bankruptcy. Also, this is the only time a10. Unanimous Written Consent of Board of Directors.
shareholder can interact and in some ways influence11. Waiver, Consent and Approval of Meeting of
the decisions of the management.Board of Directors.
A Texas business should have forms for the notices,12. Proxy (general).
waivers, declarations of service, and shareholder's13. Proxy for a Particular Purpose.
proxy. It should also keep minutes of annual and14. Proxy with Limitation of Authority.
special meetings of shareholders. The following is a4. Other Important Records - The corporate seal,
list of some of the forms and documents that astock transfer book, financial statements and
Texas business should keep:reports, annual reports and other important company
1. Notices of Annual Meeting of Shareholders.documents such as tax reports, contracts, insurance
2. Declarations of Service of Notice of Annualpolicies, leases, promissory notes, loan documents,
Meetings of Shareholders.and the like, should be kept in a safe and dry place
3. Call of Special Meeting of Shareholders (by(or in a vault), to preserve its condition. These are
shareholders).documents that are hard to replace when lost or
4. Notice of Special Meeting of Shareholders.damaged. For instance, if a business would want to
5. Minutes of Annual Meeting of Shareholders.enforce a contract, it would be hard for that
6. Minutes of Special Meeting of Shareholders.business to assert its right without the original
7. Unanimous Written Consents of Shareholders.contract in hand.
8. Waiver, Consent and Approval of Shareholder