Learn how to identify and handle potential scams like the $148.67 Corporate Annual Minutes Fee targeting single-member LLCs in New York. Understand your legal obligations and protect your business from unnecessary charges. Stay informed and secure!
Running a single-member LLC (Limited Liability Company) in New York can come with its share of paperwork and compliance tasks. However, not all invoices you receive are legitimate. Recently, some LLC owners have reported receiving a bill from a company in NY, called “Corporate Meeting Minutes,” claiming it is for a Corporate Annual Minutes Fee. Is this charge necessary, or is it a scam? Let’s dive in.
Understanding Corporate Annual Minutes
Corporate annual minutes are detailed records of decisions made during annual meetings, typically required for corporations. These records help document significant corporate activities and ensure compliance with state laws. However, LLCs, especially single-member LLCs, operate differently.
In New York State, there is no legal requirement for LLCs to file annual minutes with the government or pay a third party to maintain them. Instead, LLCs are only required to maintain internal records, such as the operating agreement and any amendments, making external services unnecessary.
Why Are You Being Charged?
If you’ve received a bill for a Corporate Annual Minutes Fee, there are two likely scenarios:
1. Unnecessary Service: The company may be offering to prepare and store your annual minutes, even though this service is not required for LLCs in New York. This tactic preys on confusion about legal obligations.
2. Potential Scam: Many such invoices are designed to mimic official government correspondence, tricking business owners into thinking the fee is mandatory.
Is This Fee Legitimate?
The short answer: No, it’s not. Here’s why:
– No Filing Obligation: New York State does not require LLCs to file annual minutes with the government.
– Misleading Presentation: These invoices often use official-looking formatting to create a sense of urgency or obligation.
– Documented Scams: Similar scams have been reported nationwide, where businesses are targeted with fraudulent or unnecessary service offers.
What Should You Do If You Receive This Invoice?
Receiving an invoice for a service you don’t recognize can be unsettling. Here are steps to handle it effectively:
Verify Your Legal Obligations
Check the New York Secretary of State’s website to confirm what your LLC is required to do. Typically, single-member LLCs only need to maintain internal records and file biennial reports with the state.
Review Your Agreements
Did you or someone at your company sign up for this service? Unless there is a documented agreement, you are not obligated to pay.
Contact the Sender
If you’re unsure about the invoice, contact the company. Request proof of your agreement to their services. In most cases, these companies cannot provide valid documentation.
Report Fraudulent Activity
If you suspect the invoice is fraudulent, take the following actions:
– File a Complaint with the FTC: The Federal Trade Commission (FTC)(https://reportfraud.ftc.gov/) handles reports of business scams.
– Notify the New York State Consumer Protection Division: This state agency addresses deceptive business practices.
– Submit a Review to the Better Business Bureau (BBB): Warn other business owners about your experience.
How to Protect Your LLC from Scams
Staying vigilant is crucial to protecting your business from unnecessary charges. Here are some proactive steps:
– Educate Yourself: Familiarize yourself with your LLC’s legal obligations in New York. This includes understanding what records you need to maintain and which filings are required.
– Train Your Team: Ensure employees know how to recognize and question suspicious invoices.
– Maintain Clear Records: Keep track of all legitimate services you use and their associated costs.
– Verify Before Paying: Always double-check invoices to confirm their legitimacy.
