Mark Kohler explains why LLC owners should document annual minutes even when not legally required. Courts use them as evidence to protect your liability shield, and formal meetings create legitimate tax deductions for travel and meals. Skipping minutes risks losing both legal protection and tax benefits.
Chapters
Super important and a great tax write-off opportunity. It's the annual minutes. Some people say LLCs don't need to do annual minutes. Yeah, and some people say you don't need to floss. Well, you can explain that to me when you're getting a root canal. This may be technically true in some states, but what's technically true is that when you're in court, the opposing counsel is going to ask for your minutes and then you're going to say, well, I wasn't required to do that. Yeah, but that's what you do when you want your entity to give you the real protection you were hoping for. And again, annual minutes are a great opportunity to create a tax write-off, to have a company meeting, to write off travel and dining and other expenses to hold your meeting.