A Guide to Corporate Kits: Are they Really Necessary?

What is Corporate Kit

The formation of a company is different from running a sole proprietorship business. It requires a lot of documentation, like contracts, forms, reports, and countless forms. This documentation and track record must be maintained for years. 

How and Where to put these records? The answer is “Corporate Kits.” It is a binder with a lot of sections that the Corporations and LLCs use to keep their important documentation and information. A company becomes the legal identity, and it is crucial to safeguard its papers linked to any people connected to the organisation. 

In this article, FastCorpUSA gives you a detailed overview of corporate kits. You will also get to know whether, as an owner of any company, you need it or not and how important they are for maintaining the legal papers and other stuff.

What is a Corporate Kit?

The formation of a company requires long and detailed planning. This planning includes executing the processing and final outcomes of any company. Therefore, while starting a professional setup, owners need to document all their details in a professional way. 

There, the corporate kit is used by the company’s owners to document all their papers. It is more like a record book with a three-ring binder keeping all the company-related information. 

A Corporate Kit is a formal and attractive binder to gather and organise the records in one place. So the owners and shareholders will be confident enough to present them to each other without having to struggle to search for each document. 

Meanwhile, when your company prospers, the bank, other investors, and buyers can request that the corporate kit be presented to them. 

What does a Corporate kit consist of?

Depending on where the corporate kit is being used, the following is the list of some of the documents that can be kept in a corporate kit.

Binder embossed with Gold: The binder works to place all your documents in a single place with complete protection.

Guidebook of Company: Your corporate kit will contain a guidebook of a specific state where you are planning to establish your company. It will contain all information about forming a new corporation and LLC.

Bylaws of Corporate or LLC Agreement: The owner and shareholders of the corporation will state everything in the bylaws. The company’s structure, ownership, processes, location, time zones, and meeting schedules will be included. 

Meanwhile, the LLC operating agreement will contain a template for LLC owners. They can customise their membership of LLC, as well as meetings and activities, through it. Delaware does not require any Bylaws and LLC operating agreements. 

Book of Meeting Minutes: All the company’s timings and meetings will be entered in this section. It usually helps the corporate sector.

Resolutions of Corporate: all the resolutions of your LLC or corporation will be listed here. It will include bank, corporate, and any other official resolutions. These resolutions showcase all the collective decisions made by the company. At the same time, the bank resolution will be required to open the corporation’s bank account.

Stock Certificates/Membership: The certificates of membership will be issued to the shareholders of the corporation LLC for official acknowledgement. 

Ledger of Stock/Membership Transfer: This account book will mention all the transfer of ownership and shareholder changes the company will make and is planning to do so.

Seal of Corporate: A seal of the corporation will be required to emboss all the official documents of the corporation or LLC. This seal will ensure that both parties agree on the terms and are collaborating with each other. 

Is it necessary to have a Corporate seal? 

The corporate seal is also known as the company seal. It includes the name of the corporation and the year and state of its formation. It is like the signature of the company or LLC. The seal proves that all the documents in the corporate kit are authentic and authorised. 

Today, corporate seals are not considered to be important, but they can be useful for a company in many aspects. Following are some of the reasons why corporate seals are necessary for the corporate kit:

  • The state agency, vendors, and banks may require it. 
  • It protects from fraud. When there is a seal on each document, nobody can use a fake document because they wouldn’t have the seal of the company.
  • Corporate seals are the proof that all the documents in the corporate kit are valid.

According to the above reasons, it is not that corporate seals are necessary, but they are a must for processing your legal structure of creating a corporation and LLC.

What are the must-haves in a Corporate kit for a company?

Following are the documents to keep in a corporate kit that is important for organisation and management. Without having these documents in your corporate kit, the corporation will face challenges in its formation.

  • Certificate of Incorporation
  • Articles of Incorporation 
  • Memorandum of Association
  • Documentation of ByLaws
  • Non-disclosure agreements 
  • Employment Agreement 
  • Business Plan
  • Financial and Transactional Documents 
  • Business Reports 
  • Meeting Minutes of Corporation 
  • Contractor Agreements
  • Business Insurance 
  • Business License  

Placing these documents in a corporate kit makes sure that these important documents are easily accessible, organised, and would be safe for a more extended period. 

Who Keeps a Corporate Kit?

A corporate kit is owned by business owners or any individual who is responsible for maintaining official records.  But as defined by its name, the corporate kit is mainly used in a Corporation or LLC (Limited Liability Company). 

Though the documentation in an LLC is less than that of a corporation, it still needs a corporate kit to maintain the records. It eventually becomes a basic need when incorporating a company or shortly afterwards.

Should an LLC have a corporate kit?

Before we disclose if an LLC truly needs a corporate kit, let’s review a few key points about it and then decide. In this way, you will better understand why or not to keep the corporate kit. 

As an LLC has a very simplified formation and the owners usually being the members of the LLC, the management structure of it, which is quite simple,  falls under its members. This means that it has fewer corporate formalities. Besides that, no meeting minutes are required, and the ownership is rarely transferred. These factors indicate that an LLC may not need a corporate kit.

But on the flip side, that doesn’t mean there is nothing to document or keep a record of. Without any record, if any negligence in a business act happens, all the members are responsible for that. 

Is corporate kit essential for Companies? 

It is not like the company can not get registered without a corporate kit, but still, Yes! It plays a vital role in organising all the official documents professionally. As the documents need to be maintained and kept for years, companies must keep a corporate kit.

There is an extensive list of documents required for the formation of the corporation and another list of forms and documents to keep track of all the important records. So, no reason supports the fact that a corporate kit is not essential for companies. 

Moreover, it is a more formal way to present the company’s records and necessary information to investors.

You can also learn how to convert LLC to C-Corp.

FastCorpUSA as Your Corporate Kit Service Provider 

While forming the corporation in the U.S., you can mail and contact us if you face challenges and are stuck somewhere. FastCorpUSA has an extensive record of providing authentic services to corporations and leading them through seamless formation procedures. 

The firm is the best throughout Eastern and Western Europe. We ensure that the company gets all the necessary details related to the corporate tax rate guides and filing the articles of incorporation while selecting the best states to form the C-corporation in the U.S.

Summary 

There is only one way to keep business documents safe: they must be easily accessible and securely preserved at the same time. Keep the documents in a corporate kit. It is like a book with a three-binder ring and the company’s seal that helps keep the official documents organised. 

A corporate kit is essential for both corporations and LLCs. With the company seal on it, it becomes even more useful. The corporate kits can be obtained from any legal document provided or from any online platform that specialises in business supplies. 

Author

  • Rabia Jawaid

    Meet Rabia Jawaid, your friendly finance wordsmith! Equipped with a instinct for making finance fun, I'm here to detangle the mysteries of money matters. From decoding investments to breaking down market trends, I've got your back. As your go-to Content Writer, I turn financial jargon into plain English, helping you navigate the money maze with ease. Let's make finance less daunting and more delightful together!

    View all posts

About Fastcorp USA

Founded in 2012, FastCorpUSA is the largest company service providers for international entrepreneurs planning to set up bases in the United States. We help overseas entrepreneurs navigate the webs of governmental paperwork and ensure all members companies are compliant to the US laws.

FORM YOUR COMPANY

RESOURCES

Contact Us

    What is 5 x 8 ?

    You may also Like..

    0 Comments

    Submit a Comment

    Your email address will not be published. Required fields are marked *