How to Make Sure Your Company Stays Compliant

Staying on top of all the rules, regulations and laws surrounding your business isn’t always easy. There can be a few things that will get forgotten or simply delayed because of other more pressing things. However, staying within the law and maintaining your compliance is vital to your company’s success. Otherwise, you may find your company suffering penalties. If you are incorporating a business or forming an LLC, there can be ongoing compliance requirements, so you need to be aware and do some research.


Corporations have the strictest internal requirements; these include holding regular meetings with directors and shareholders. There are also requirements to adopt and update bylaws, issue stock to their shareholders and record all stock transfers. Even small corporations need to adhere to these regulations, so it is vital that you, your managers and members are all aware of their importance. It is also important that everyone in your corporation knows their role to achieve compliance and that regular reviews are undertaken to make sure that happens.


When it comes to LLC’s, there is a recommendation that they maintain an updated operating agreement. You should also issue membership shares, make a record of all membership interest transfers and hold regular meetings. You can appoint companies to advise you on how best to arrange and deal with things such as an amendment to LLC operating agreement if needed. It takes the pressure off you, and it also helps to make sure you are compliant. While many of these things are not required, it will keep your company’s dealings transparent and prevent any possible problems in the future.

Annual Reports

One external requirement that many states enforce is an annual report or statement as it is sometimes called. These reports help the government keep track of formed or qualified corporations and LLC’s. Many states also require that a fee is paid when these reports are filed. The fees can range from $10.00 up to $300 or sometimes more. Some states require a biennial report from their companies, so you must find out what the requirement is for your state.

Know Your Dates

One thing that can sometimes catch companies out is the due dates for their taxes and annual reports. The reason for this is that different states use different criteria for setting their dates. Some states use the anniversary of the corporation or LLC’s formation or qualification. Other states set different dates for the corporation annual statements and the LLC’s statements that are in line with their financial year end. You need to find out what your state requires and ensure that your company will be ready when the due date comes around.

There are a lot of things your company will need to be aware of to stay compliant. However, if you ensure that you stay organized and that you have dedicated people to oversee each area, then you should be able to deal with these issues easily and in good time for the dates that they are due.


Post new comment

The content of this field is kept private and will not be shown publicly.
This question is for preventing automated spam submissions.