Good Records, Good Protection

As our society moves more and more to a compliance based bureaucracy, it becomes more and more important to anticipate the challenges that will arise. For example, as the tax code becomes more complicated, the level of recordkeeping required to sustain your position on an audit increases. As the new health care system extends its claws into your life, the more information will be required of you. From a corporate perspective, anticipation of bureaucratic challenges will be even more important. For example, most new business ventures are formed as limited liability companies ("LLCs"). Originally, people enjoyed the freedom from corporate requirements such as minute books, officers, and annual meetings. However, as government entities and others are stepping up their challenge of such entities, it is becoming more and more apparent that good minute books, annual meetings, and the other "corporate" trappings, are necessary to fend off claims against the Company, audits, and other unpleasantness. Lenders are even requiring peeks at minute books as part of their underwriting.

The Lesson: Keep good consistent records. As the times change, practices do too. You would not want to get caught being held up to new standards with only old practices to support you.