A lot goes into running a successful business.
Of course, the recipe is different depending on your industry, market, and offering.
However, one thing all successful LLCs have in common is they remain in compliance – year-in and year-out.
6 Requirements for Keeping Your LLC in Compliance
Fortunately, staying compliant with government regulations doesn’t need to be a herculean challenge.
Provided you understand what’s required, earning your Certificate of Good Standing can become as routine as all of your other annual endeavors.
Here are the six steps you need to take:
1. File Your Annual Reports
Sometimes called your “Statement of Information,” most states require you file some type of annual report – though it might only be necessary to do so every two years in your state.
Check your state’s website for the exact requirements, including the date it must be filed. Missing the deadline could incur penalties as well as the dissolution of your business.
2. Keep Accurate Records of Internal Affairs
Technically, this isn’t a strict requirement for LLCs, like it is for corporations.
Nonetheless, it’s always wise to record Minutes of Meetings and document any other important events, like changes in operations or standards and even business transactions.
3. File Articles of Amendment as Necessary
You may need to file Articles of Amendment if your business has been through a major change. This could include anything from updating the management-style of the business to an address change.
4. Be Sure You Have Permission to Do Business Out of State
If you decide to conduct business in any state besides the one in which you formed your LLC, you must receive permission to do so.
Usually, this means applying to become a Foreign LLC within the state you wish to operate.
The actual name of this form differs from one state to the next, but it’s usually filed with the Secretary of State’s Office. Depending on the type of business you run, you may also need to apply for certain licenses and permits, too.
5. Keep Your Personal and Business Finances Separated
If you’re a small business owner, make sure your personal finances and business finances never overlap. Aside from the headaches this will cause come tax time, this will also make your finances much easier to understand for government officials.
6. File DBAs for Any Other Names You Use
Have you begun doing any business under a name other than your LLC’s official title? If so, you may need to complete a DBA (Doing Business As) or fictitious name registration. This even includes simple variations, such as adding “.com” to the end of your company’s name or shortening/abbreviating one of the words.
Prioritize Your Certificate of Good Standing
If your LLC is successful in every other area, it can be easy to forget about the importance of your Certificate of Good Standing.
Unfortunately, that’s a mistake that could eventually lead to administrative dissolution.
So, now that you understand what’s required to remain compliant, make every effort to prioritize these steps and you’ll have no issues remaining on the government’s good side.