5 Important Business Compliance Tips For New Entrepreneurs
Establishing a business from scratch is one thing. Maintaining it and staying legally compliant is another.
As a new business owner, you have to make sure that you comply with local, state, and federal requirements. This is crucial if you want your company to remain in good standing. Doing so will likewise help you avoid late fees and penalties, along with a host of possible legal problems.
Of course, business compliance requirements usually vary depending on the company’s location, its legal structure, industry, and other factors. In any case, entrepreneurs have a responsibility to learn about these requirements and meet their respective deadlines.
Here are some basic pointers to keep in mind:
1. Keep a compliance calendar
First off, it’s a practical idea to keep a calendar. This will allow you to stay on track of compliance requirement due dates throughout the year. For example, you want to be aware when payroll tax return and income tax filing deadlines are drawing near. The same can be said about other requirements such as business permits, accreditation processes, and others.
With this, you will be able to avoid fines and other undesirable consequences.
2. Make sure that you have proper employer documentation
As an employer, you need to have your own Employer Identification Number (EIN) issued by the Internal Revenue Service (IRS). This is a requirement before you can start legally hiring personnel.
Once you begin hiring, you also need to keep hiring records for each of your employees. This means having their pre-employment and employment files including their medical records, credit information, and immigration documents, if any.
Additionally, you need to maintain an employee handbook that includes the policies and procedures implemented in your company. These are likewise important if you want to stay compliant.
3. Be well-informed about updates on existing laws and regulations
You have to be in the know when it comes to new changes regarding compliance requirements.
Entrepreneur encourages business owners to “follow industry news via social media and online publications”. Other than that, you can “subscribe to bulletins and updates from the Federal Trade Commission (FTC), Consumer Financial Protection Bureau and other relevant organizations.”
4. Ensure that your company remains in good standing
A Certificate of Good Standing verifies that your company was “formed legally, has been properly maintained and is still active,” according to Forbes. Having it in your possession is necessary, especially for transactions such as:
- opening a business bank account
- applying for a business loan
- registering your business in another state
Furthermore, you may also be asked to present it when seeking funding from investors or when selling your business.
This certificate can be obtained from the Secretary of the State. Fees and processes differ from state to state.
5. Hire professionals to help you out
Timely compliance can be overwhelming for new business owners. Fortunately, you don’t have to do it all alone. You can tap professionals to help you with the many different obligations that you face as a compliant business.
Case in point, an accountant can provide you with useful guidance in managing your business finances. As a result, you will have an easier time organizing and submitting financial reports and documents.
A registered agent, on the other hand, can represent your company in handling legal matters and other requirements. They will receive and respond to legal correspondence on your behalf. On top of that, they will inform you about any forthcoming due dates and take the needed action, upon your instruction.
As you stay legally compliant, you can ensure a smooth operation for your business, enjoy better public relations, and avoid legal hassles. You get to fulfill your responsibilities while growing your startup at the same time.
Mark Rosario is a content specialist who regularly writes for Registate, a Delaware-based registered agent service provider. He has a passion for thorough research and converting business concepts into compelling, informative content.