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:
Even if your corporation or LLC only has a single owner, you must still follow procedures like a larger company.
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.
Your business must also keep public records tracked by state and federal governments current and accurate.
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.
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