Filing your new business as an LLC or a corporation is a smart decision for a number of reasons; it enables you to save on taxes and protect your personal assets, and it gives your business a sense of professionalism, to name a few. However, once youâ€™ve made the jump, the work doesnâ€™t stop with the end of the initial filing paperwork. Itâ€™s now your responsibility as a business owner to make sure that your LLC or corporation stays compliant with state rules and regulations. By implementing these three simple tips, business owners will rest assured that their businesses remain in good standing.
Hire a registered agent service
While not every state requires that businesses have a designated registered agent in place, most do. And though business owners have the option of acting as their own registered agent, most business owners find it beneficial to hire an outside service. When you hire an outside service, you are giving your business some privacy with legal matters. If your company gets served, by having an outside service in place, the papers will be delivered to that office instead of your storefront where all your customers and employees can see the exchange. Additionally, RA services also receive reminders from the state. Upon receiving these reminders, a service will call you promptly to relay any and all state messages. Registered agents are also an excellent way to keep compliant with state laws as well.
Donâ€™t forget the annual report!
Depending on the state you file your business in, the questions you have to answer as a business owner for an annual report may vary, but the general list includes questions on where your business is located, where your registered agent is located, and names and addresses of the directors of the business. Filing an annual report is important because as an LLC or corporation, your business becomes its own legal entity, separating itself from you the business owner. So itâ€™s important to keep the state up to speed on any changes that your business makes.
Check to see how you need to present your business
Some states, like California, legally require businesses to attach an LLC, L.L.C., Limited Liability Company, Incorporation, or Inc. at the end of their name depending on what type of business they are. By doing so, this means theyâ€™re being especially careful when signing business contracts and other legal forms, and using a full, proper title. Itâ€™s all in the details and itâ€™s the specifics that are important to focus on that the state requires your business to adhere to. You can never be too careful with the state; read the rules with a sharp eye and follow through as best you can!