One milestone you could achieve as an entrepreneur is when you’ve finally built your dream business. This is where you are done with all the documents, obtained all the permits and licenses, and filed your tax obligations successfully. However, your responsibility should not stop there, because a business is definitely a long-term commitment. This means that you must keep in compliance with your state’s regulations to keep your business on the line. What do we mean by this? Keep reading as we explore the various areas you need to revisit every time to ensure your llc business stay compliant with the state.
1. File your annual reports.
Annual reports is one of the requirements that most of the states require on every LLC. Typically, you need to file your annual reports at the end of the year. This is where your audited finances, financial position, cash management and other company details are stated. You might want to prepare for it very early so you won’t have to scramble on the last minutes of filing, causing you to miss the deadline of submission. If you opted for formation services like ZenBusiness when you formed your LLC, you can also hire them to file your annual reports. This will help you to make sure your LLC remains compliant with the help of an expert.
2. Pay your taxes on time.
Your LLC’s obligation is to declare and pay your taxes rightly and on time. These might include franchise, sales, income, or business taxes. If you want your business to be on good standing, do not try to run from your taxes and settle it accordingly.
3. Maintain your registered agent.
Your registered agent is the state’s main point of contact regarding your business. If you failed to keep your registered agent, you won’t be able to receive all the legal notices and documents from the state, which can affect your business. The Secretary of State will mark your business as defunct if you failed to maintain or pay your registered agent.
4. Renew your business permits and licenses.
Every LLC is required to renew their business permits and licenses annually. This is a mandatory regulation of every state, which would require you to update your federal, state, and local licenses to operate every year. Mind that you cannot run your business if you have expired documents or else you’ll be fined for doing so.
5. Record your business changes.
On instances where there might be some inevitable changes on your LLC, make sure to record these and file it on your Secretary of State. What changes could these be? For example, your LLC name or address was changed, there were additional or removal of members, or you sold your company’s shares, it is your responsibility to notify your state about these changes. You can always file Articles of Amendment stating all the alterations and new information about your LLC. It won’t cost you that much, and your state will be pretty happy to receive your report about your business.
A good standing business isn’t always the one with the highest profits on the line. Remember that if you want to keep your business running, you need to keep an eye to the state’s regulations that can have a significant impact on your business. You must ensure that you are in compliance from filing necessary documents to paying taxes and officially notifying your government about your business. You cannot and won’t achieve success if you’ll just neglect the policies made for your business to be legal and running.