Now that the company is formed, it is important to maintain corporate compliance. It’s an ongoing process. Running of an LLC is more involving than a sole proprietorship. However, it is not as complicated as you think, if you know where to begin from.
The clients of your company should keep the LLC in good standing, if the LLC does not stay compliant, you may have to pay additional fees and penalties to the state. To maintain a healthy LLC, you have to file the annual report and state filing. Pay all the federal, the state and the local taxes schedule and manifest all the details from the annual meetings of the year.
So here in this article, we will enlist all those best ways to keep your LLC complaint:
File the Annual report with the State:
There are a number of states that require an LLC to file an annual report, also known as the state of information. It can be for every year or every alternate year. There’s a small amount while filing this report depending upon the state. This is just paperwork to ensure that the state has the company’s details. It has to be filed within the given specific deadlines for every state.
Major Changes have to be reported to the state:
The LLC has to send an official notification to the state, whenever there are major changes in the company. It might be a change of location or addition of a board member etc., also called “Articles of Amendment” in various states. This has to be filed in a timely manner.
Make sure that the LLC has all the Permits:
In order to run the business smoothly, you will need all the permits to legally operate. It can be health department license, reseller’s license, fire department permit, and general permit. This can be completed via contacting the local offices or online via filling few forms.
The Franchise Taxes have to be up to date:
There are states that levy franchise tax on the LLC’s to legally operate in that location. These taxes have to be paid off for the company to be in good standing. Every state has its own franchise obligations and deadlines.
Keep the Business and Personal Account Separately:
All the corporations and LLC’s have to keep their financial records separately. All the clients have to get a separate business checking account, for which an EIN and credit card account is required.
Have a Check over Business Names:
If a business name is different from what is being operated, you will need to file a DBA (Doing Business as) with the state how minor ever the changes are.
The Registered Agent should be current:
If your company’s client is using a registered agent service for the business mailing address, the service fees have to pay on time. The renewal also has to carry on time. It is always recommended to provide a valid address of record.
It is really great to have an own business entity. However, proper steps have to be taken for its health maintenance. In absence of these, you might be subjected to substantial tax liability and personal lawsuit.