A corporation or LLC should keep finances separate from the owner’s. Keeping records clear is crucial.
Compliance and Reporting
Filing reports and paying fees on time, keeping agent info up to date, and observing corporate rules isn’t difficult, but it’s essential. You may lose protection if you don’t. Keeping your company in good standing makes getting a certificate easy when needed to borrow, sign contracts, or expand.
- File annual reports on time.
- Pay necessary fees and taxes.
Building Strong Vendor Relationships and Planning
- Develop relationships with vendors for favorable terms. Communicate clearly and pay on time to maintain them.
- Have a business plan outlining goals and how to achieve them.
Staying Legally Compliant
Pay fees to stay compliant, such as small statement fees or franchise taxes. Check with the Secretary of State on amounts based on filings. Forming an LLC or corporation is more complex and expensive than a sole proprietorship or partnership. Provide ongoing info to maintain good standing. Statutes vary by state.
Luckily, losing good standing can usually be reversed by rectifying issues. If not in good standing, the state may label the company delinquent, void, suspended or inactive. Failing to comply means the state may revoke its charter or dissolve it, exposing principals to liability.
Company Guard Compliance
Company Guard Compliance helps keep your business in good standing by ensuring annual reports are filed on time.