What is Corporate or LLC compliance?

What is business compliance? To continue receiving the benefits of organizing your business as an LLC or a corporation, you must maintain your status by observing regulations and laws. Corporate and LLC compliance are very similar to one another.

Below is a simple corporate compliance checklist:

Internal Compliance

Even if your corporation or LLC only has a single owner, you must still follow procedures like a larger company.

  •    Hold an annual meeting as detailed in your bylaws
  •    Record minutes of meetings and keep records of key decisions
  •    Issue stock to shareholders and record transactions
  •    Amend your bylaws as necessary and document those changes

This information must be held in a secure location where only authorized personnel may view or alter it. If audited or challenged in court, be prepared to show these records.

External Compliance

Your business must also keep public records tracked by state and federal governments current and accurate.

  •    File your annual reports with your Secretary of State on time
  •    Pay any state franchise taxes or fees for maintaining your business status
  •    File income taxes with the IRS on time and keep tax payments current

The due dates for filing annual reports vary by state. In some states, they are due on the anniversary of your initial registration. In other states, all corporations and LLCs must file at the beginning of the calendar year.

Failure to Remain in Compliance

If you allow your status to lapse, courts may rule you are no longer eligible for protection as a corporation or LLC. Adversaries may target your personal assets in a lawsuit or restrict your right to settle debts by issuing stocks.

You also have a responsibility to act like your business and personal finances are separate. If you merge personal and business accounts, a court could rule that you are out of compliance as well.

Get Help with Your Business Filings

GovDocFiling helps you get started right to keep your regular compliance routines simple. Apply for LLC structures or take advantage of our online EIN application.

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