Essential Corporate Filings: A Guide to Ensuring Business Compliance

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Starting out with a business idea might be all fun and games until you quickly realize that there is a whole lot of paperwork staring back at you. That’s not where it ends. Administrative and compliance-related tasks soon rear their ugly heads and you begin to feel suffocated. Well, you don’t need to feel that way anymore! Here’s all you need to keep in mind; 

A Checklist for Corporate Filings

Let’s begin with corporate filings. Keep in mind that these are state-specific which means that they may change from one state to another. Corporate filings also come about at certain stages of a business’ life cycle. 

1) Formation of the Business or Change in Stakeholder Rights

When you first set up that business you must register it. This includes filing a charter which is named differently depending on your state. Keep in mind that this charter will list out your corporation’s classes of stock, the rights and privileges of said classes, and the corporation’s purpose as well as the agent’s address. In case the rights and privileges change at any point, amendments must be filed. 

2) Changes in the Name, Structure, or Registered Agent of the Business

If at any point you decide to change your business’ name or in case the registered agent is modified in any way, you need to file an amendment to stay compliant. 

3) Taxes, End of Year Statements, and Financial Reports

Corporations are also required to file annual reports on a yearly basis depending on their fiscal year. This is generally done and dusted before the taxes are due and it is quite easy to file the annual report online!

4) Business in Multiple States

In case you are hoping to do business in more than one state you must file a qualification for each additional state of your choice. Additional requirements may also come in depending on the specific state where you register. 

5) Corporate Transparency Act and BOI

This is a recent requirement that has been implemented through the Corporate Transparency Act. It requires for all businesses to list down the owners of their business and provide the information to the IRS. Failure to file the BOI report may lead to penalties. 

6) Federal Securities

According to state securities laws, each time a corporation issues securities, be it stock, options to purchase stock, convertible notes, etc., the corporation is required to comply with state securities laws. At the federal level, these issuances need to be registered or exemption needs to be obtained (available for startups and private companies). 

  • Sale of Securities: 25102(f) notice. 
  • Issuance of option grants or any other compensatory equity: 25102(o) notice. 

In Short

Although online forms have become far too easy to fill out and manage, it can be tough to do so while juggling essential business decisions. Relying on corporate filings for business compliance can give you the freedom you need to run your business without worrying about the nitty gritty details!

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