Every lawyer or law firm may have a different system when it comes to maintaining the corporate records of a client, but most lawyers have the same goal in mind: to continue to assist their client with the maintenance of their corporate records throughout its lifetime. So, what should lawyers be thinking about when tracking and maintaining their client’s corporate records? This article gives you an idea of the basic information to keep track of to ensure your client’s records stay up to date, and the entity remains in good standing.
Some lawyers set up an agreement with their client, where the client pays a fee (usually an annual fee), and the lawyer then takes care of basic corporate maintenance upkeep for them automatically. However, many clients don’t necessarily want to spend that money right away, or make that kind of commitment. If a lawyer helps its clients with incorporation or other corporate matters, but with no agreement to provide services in the future, they should still follow-up with those clients once or twice a year to see if they require assistance with carrying out annual maintenance, filing the corporation’s annual return, or assisting with any other corporate matters that may have come up for that client. This is a great way to build trust with your clients, and also maintain a good revenue stream from existing clients on an ongoing basis.
So, when should lawyers contact their clients?
This question may vary from one lawyer to another—or even from one client to another—but we think there are two key dates to keep in mind for all clients:
Their Corporate Anniversary
Checking in with a client around the time of their corporate anniversary is a great way to see how things are going. If your client did not set a fiscal year end at the time of incorporation, then asking them if they have set one is a good idea in case they need help with Annual Maintenance, or if that question sprung up any follow-up questions for them. Also, depending on where they are incorporated, they may be required to file an annual return by a certain time after their corporate anniversary, so asking if they would like assistance with that filing is really important to help ensure that the corporation remains in good standing with their governing jurisdiction.
Their Fiscal Year End
Keeping track of a client’s corporate fiscal year end is another great way to stay on top of their annual maintenance requirements. Accountants aim to complete financial statements within six months after a corporation’s fiscal year ends, and annual maintenance should be carried out once those have been completed. Making a note to check in with a client four or five months after their fiscal year end to see if their financial statements have been completed and if they would like assistance with their corporate annual maintenance requirements is another way to build trust and ensure their corporate records remain up to date. To learn more about annual maintenance, check out our “Corporate Annual Maintenance” article.
Depending on the client, there may be other times throughout the year that you should check in with them, but keeping the above two times in mind is a great foundation to build and grow a lawyer client relationship. Having that check-in once or twice a year also ensures that changes to the corporate structure are properly recorded and that their governing jurisdiction always has the corporation’s updated information on file.
What should a lawyer ask a Client when they check in with them?
This will vary from one client to another, but some typical questions to ask when a lawyer is checking in with a client may be:
- Would you like our assistance in filing your Annual Return this year?
- Have the financial statements been completed for your most recent fiscal year end? If so, would you like us to take care of the corporate annual maintenance for the corporation this year?
- Have there been any changes to the corporate structure since we last spoke—such as changes to director information, officer information, shareholder information, or the registered head office of the corporation?
- Is there anything that may be worth a follow-up from your previous interaction with the Client?
Many clients are not aware of what their corporate responsibilities are, and so checking in with them once or twice a year and letting them know what’s required is key to ensure that you help them stay on top of their corporate obligations. It can be overwhelming for clients to track everything by themselves, therefore the support from a lawyer is invaluable to help take that stress off their shoulders. It will also mean that when they require assistance with larger transactions, such as a transfer of shares, putting together agreements, or the sale of their business, they will very likely stick with you to help them through the process.
If you’re interested in digitizing your client’s corporate records, check out the Tobuso Corporate Support platform. Tobuso is a secure, affordable way to digitize your clients’ Minute Books, keep them compliant going forward, and give your client viewing access to their records whenever they need them. No more managing paper minutes and coordinating shipping or signing appointments!
