Business Compliance is one of the major components of good corporate governance. Business compliance refers to a business following all the rules and laws pertaining to how they conduct their business, their personnel, and the attitude they take toward their customers. A business that complies with all the laws and regulation will be able to operate in an honest manner. With this being said; there are many steps that a business can take to comply with government and non-profit regulations.
For a small business to become compliant with the law
three essential processes need to take place. First, an internal company review must occur. This is when management discusses the business compliance as a service issues with an attorney, or any other third parties deemed necessary. After the internal company review is complete; the business must then begin its process of filing all applicable forms with the appropriate government agencies.
One of the most important steps involved with business compliance is to file the correct forms with the right agencies. A great example of this would be the Franchise Disclosure Document. FDD are required by almost every state and must be filed with the department of business services. The next step is for the business to develop an external CPA, or business clients accounting firm. External CPA’s work under the supervision of a certified public accountant (CPA). The firm needs to work with an external CPA to prepare FDDs, as well as perform audits regarding the corporation’s compliance with the state and federal laws.
Formal Filing of all state and federal business compliance requirements can be an overwhelming task for most business owners. The best way to ensure proper filing is to have a certified public accountant to help prepare the necessary forms. Having a CPA on-staff is extremely beneficial in this case. They are highly trained in the submission of these documents. Having an experienced professional on hand will alleviate stress and anxiety surrounding this process.
Another option to make filing for business compliance easier
is to hire a good attorney to help prepare and file the annual report to the states. Good standing internal business compliance requirements are not hard to meet. Once the annual report is filed, it is reviewed and updated accordingly. A good standing annual report also helps boost a company’s credibility with its potential state and/or federal clients. Having a good standing prevents potential losses due to non-filing.
It doesn’t matter if your business is large, medium, or small. No matter what type of company you own or operate, you need to be compliant with all of the state and federal regulations. Being a business owner is a privilege, not a responsibility. To protect your rights as a business owner, you must make sure you are making all of the necessary filings for business compliance.
- A great way to help ensure compliance is to hire a qualified attorney to prepare and file your annual report for you.
- They can also help you with filing any state and/or federal forms correctly.
- One of the most important things to remember is that your company needs to be compliant with all corporate veil requirements in order to qualify for the tax breaks provided.
Without good standing and a valid certificate of exemption, you will not be able to take advantage of the 15 percent deductions. In addition, when it comes to business compliance, you need to make sure you are having a good rapport with your accountant. It’s very important to work with a person who you trust and feel comfortable with.
The bottom line is that a person with a good track record and a high level of credibility will make sure you have a smooth sailing throughout the filing process and when it comes to audits. Don’t be afraid to seek help from a qualified attorney if you feel you are in danger of non-compliance. They will help keep you on the right path by being there to assist you when you’re faced with an audit or compliance test. Working closely with an experienced professional can make sure your business compliance is 100 percent secure.