Corporate Compliance

Many business owners are unaware that incorporation requires corporate compliance. When you incorporate you become a legal entity. Becoming a legal entity requires registering with state and federal agencies. Federal agencies will require a Federal Tax Identification number. State agencies will require employment ID numbers. Registration with any state or federal entity will require different forms of upkeep to keep your corporation compliant.

State Corporate Compliance

When you incorporate, you register the name you want to use with the state. The state approves your entity and assigns a corporate identification number. Once registered, the state will require you to file an annual report. Annual reports are part of corporate compliance. Annual reports are intended to update the state on changes to your corporation. If an annual report is not filed, you may be subject to penalties.

If you have employees, the state will require you to pay payroll taxes. Keeping compliant with state regulations for operating a business will also require compliance in the following areas;

  • Workers Compensation insurance coverage in case employees get injured
  • Registration for a sales tax ID number if subject to sales tax
  • Registration for an employer ID number if subject to payroll taxes
  • Quarterly and/or annual tax filings for employer taxes and/or payroll taxes
  • OSHA requirements for workplace and jobsite safety
  • Registration with state entities for specialized industries such as law, accounting, construction and health care
  • Reporting of newly hired employees to state employment agencies
  • Obtain a business license or occupational permit from your local city or county allowing you to conduct business in that area
  • Paying W-2 employees the required minimum wage
  • File annual income tax return for corporation

Federal Corporate Compliance

The federal government will not require you to file an annual report. The federal government will require the following to keep your corporation compliant;

  • File annual income tax return for corporation
  • Registration for FEIN (Federal Employer Identification Number)
  • Maintain accurate and detailed records of expenses and income
  • File annual employment tax forms 1099’s and W-2’s
  • File quarterly and annual employer payroll tax returns

When you incorporate it is a great idea to research corporate compliance in your state. Part of many incorporation services is help and advice regarding corporate compliance. Avoid fees and penalties from late filings by understanding what your state and government require to maintain your corporate protections.

If you need help with incorporation don’t hesitate to call us at 1-800-572-4419 or email contact@genesisaccountingsolutions.com to get a quote for incorporation services. Feel free to subscribe to our blog for more accounting, tax, bookkeeping and HR tips.

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