What is an LLC Corporate Kit? (Everything You Need To Know)
A limited liability company must have assets and information that must be protected at all costs. An LLC corporate kit is the best way for businesses to organize and store this information.
As an experienced business consultant with over a decade of practice in LLC services, I am well acquainted with the contents and details of a corporate kit.
In this research, I've partnered with other professional business consultants to provide you with a comprehensive article about the purpose and importance of a corporate kit.
Quick Summary
- An LLC corporate kit is a binder designed to safely store and organize a corporation's documents and sensitive business information.
- Corporate kits typically include Articles of Organization, EIN Certificates, and various certificates and agreements to ensure the LLC's compliance and operational integrity.
- In 2021, as per Business Formation Statistics, nearly 5.4 million applications were filed to form new businesses, marking the highest record and underscoring the growing need for organizational tools like LLC Corporate Kits.
- An LLC corporate kit is crucial for maintaining an organization because it helps my clients safeguard important documents like the LLC operating agreement and Articles of Organization.
What Is An LLC Corporate Kit?
According to the Department of State, an LLC corporate kit can be defined as a form of binder that allows corporations to safely store their documents and sensitive business information [1].
A corporate kit stores different sensitive documents required for the formation of a limited liability company.
What Is the Purpose of a Corporate Kit?
The purpose of a corporate kit is to provide the LLC with a way to keep all of its documents organized and in one place.
Corporate kits usually come with a binder or folder and dividers for each section. This makes it easy for the LLC to find what they need when they need it.
Furthermore, limited liability companies must keep certain documents on file, and a corporate kit ensures that all of the necessary documents are readily available.
"We live in an increasingly digital world. When starting a company, you might feel that it's old-fashioned to want a traditional corporate kit with physical copies of all of your documents. But many of our clients still do! Just as you may keep your family's personal documents (birth certificates, passports, etc.) together in a safe place, it's wise to do the same for your business."
- Nadine Basri, Senior Digital Strategy Specialist at The Incorporators
According to Business Formation Statistics, in 2021, nearly 5.4 million applications were filed to form new businesses—the most of any year on record, indicating a significant increase in new companies that could benefit from such organizational tools [2].
What Is Included in a Corporate Kit?
A corporate kit includes the LLC's internal documents (such as operating agreements) as well as state legal requirements.
The documents included in a corporate kit will vary from state to state. However, most corporate kits will consist of the following documents:
- Articles of Organization
- EIN Certificate
- Stock Certificates
- Blank stock certificates
- Membership Certificates
- Company Bylaws
- Stock Transfer Ledger
- Corporate Resolutions
- Minutes of the First Meeting of Members
- LLC Operating Agreement (binding contracts among LLC members)
These are just a few of the documents typically included in a corporate kit. Consider asking a law firm for other related items.
How Do I Obtain a Corporate Kit?
You can obtain a corporate kit by purchasing one or downloading a template.
Once you have obtained your corporate kit, it is important to review all the included documents, especially your operating agreement.
This will help you ensure that your LLC complies with state law. If you have any questions, be sure to contact an attorney or your state's LLC division for assistance.
Reflecting on data from the Economic Innovation Group, the retail sector's share of business applications grew from 15% in 2019 to over 18% in 2021, with a notable shift towards non-store and online models. This trend points to an increasing need for LLC Corporate Kits tailored for these emerging digital marketplaces [3].
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FAQs
How Much Does an LLC Corporate Kit Cost?
An LLC corporate kit costs around $50 to $100. The price may vary depending on the company you purchase it from and the features included in the kit, such as extra storage for the LLC operating agreement.
Do I Need an LLC Kit?
You do not need to have an LLC corporate kit. However, it is a good idea to have one on hand as it can help you keep your LLC organized and in compliance with state law.
What Is an LLC Corporate Seal Used For?
An LLC corporate seal is used for authenticating documents. The corporate seal usually contains the name of the corporation, the state of incorporation, and the date of incorporation.
References:
- https://dos.ny.gov/faqs-corporations-business-entities
- https://www.census.gov/econ/bfs/pdf/bfs_current.pdf
- https://eig.org/new-start-ups-break-record-in-2021-unpacking-the-numbers/
