December 2, 2020 – Don’t drop the ball before the ball drops on the new year!
As the year comes to an end, there are critical business responsibilities that should be taken prior to the beginning of the new year. Ensuring these items are completed will help a business thrive in the new year, (and avoid dreaded compliance headaches). Make sure to have each checklist item accounted for to stay ahead of end-of-year business responsibilities.
1 – Business Licenses
Check that you’ve obtained all appropriate business licenses and keep note of their renewal dates. If you’ve expanded or changed your business in the past year, you might need new licenses or may no longer need one that you have. If you have home-based workers, you may need to obtain a home occupation permit.
2 – Foreign Qualifications
If you are planning on doing business outside of the state you formed in, you need to register. This is called “foreign qualification.” If you’re operating in a state without having foreign qualified, you could carry fines and penalties into the new year. If you have employees who will be working for you while located in states other than the formation state, this can also possibly trigger the need to foreign qualify. You may also be facing additional compliance mandates with newly-remote workers.
3 – Annual Reports
If you fail to file a required annual report, you’re likely to fall out of good standing and face fines and penalties, possibly triggering revocation. If you think you’ve missed a deadline, now is the time to act on the restoration.
4 – Dissolutions and Withdrawals
If there are states where you’ve ceased operations, you need to properly dissolve and/or withdraw from them. This will keep the business in good standing and prevent you from having to file unnecessary annual reports and accruing additional taxes for the year of 2021.
5 – Amendments
If changes have been made this past year to the information set forth in your original Articles of Incorporation (Corporation) or Articles of Organization (LLC), you’re required to file an amendment with the state of formation. These changes, for example, could include a company name change, or a change from member-management to member-management, or vice versa.
Stay ahead of your business responsibilities with Vcorp Services— As your trusted compliance partner, we are always here to help you.