Corporate Kit Definition

What is a corporate kit?

A corporate kit is an embossed binder used to hold important documents from a company’s formation. It’s a way to keep everything related to the formation, organization, and management of the business all in one place so they’re easily accessible.

Business owners can create their own corporate kit, purchase a pre-made one, or opt not to use one at all. Though the contents may differ by seller, a corporate or LLC kit usually includes the following features:

• Copy of filed formation documents (Articles of Incorporation or Organization)
• Operating agreement or corporate bylaws
• Meeting minutes
• Stock/membership certificates
• Transfer ledger
• Corporate seal

Corporate Kit Benefits

Having a corporate kit isn’t required by any state. The only requirement for business owners is to maintain records of the documents associated with the business. A corporate kit binder is an easy way for a small business to keep track of those papers. Business owners can always add other items to the corporate kit, such as tax documents. A corporate kit can also create a professional aesthetic for when the business meets with banks, investors, or other parties that need to review this information.

Corporate Kit Disadvantages

The primary reasons not to invest in a corporate kit are that they can be expensive and they’re never legally required. A modern-day business owner can choose to keep all of their records in an electronic format, which would eliminate the need for a physical binder. Even if an entrepreneur kept hard copies of these documents in a shoebox, it would be enough as long as the owner kept track of the required documentation.

Considerations When Purchasing a Corporate Kit

Business owners who are considering purchasing a corporate kit would be wise to receive confirmation that the state has accepted their corporate filings. Corporate kits typically contain customized documents and supplies that a business owner won’t want to reorder if something goes wrong. For instance, a corporate seal might reflect the corporation’s name, year of incorporation, and state of incorporation. If the name is rejected or the filing is delayed until the next calendar year, the entrepreneur would have to redo their seal.

Another important consideration is whether the company needs a corporate kit to begin with. Keep in mind that no one needs a decorative binder and seal to operate their businesses in compliance with legal requirements.

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