Company Compliance
Previously we mentioned that many businesses must file annual reports with their respective states. In addition to this, businesses that fail to do this will eventually be dissolved due to non-compliance. Specifically, corporations must do this by law and recent amendments in the state of Arizona require partnerships to fill out this report as well and pay its associated fees in order to maintain their business. This has ramifications on all businesses because it is only a matter of time until all entity types, LLCs included, must report annually and pay their dues. In fact, some states are already requiring this so no matter where you are, it is important to be up to speed as to your state requirements.
We also discussed annual minutes and much of the information contained within your annual report are represented in your annual minutes, which stems from what is discussed and documented at your annual meeting. Sounds confusing, possibly, but when you analyze the components of these requirements it is simply about maintaining a logical and consistent approach to running your business on a regular basis. Since various states are tightening the screws on legal compliance, it is becoming ever more important to maintain a legitimate and healthy business practice. Annual meetings can be reduced to monthly activities known as company actions or simply put, resolutions. Next time I’ll address the importance of resolutions and not only how they can increase profitability of your company but how they can help keep your company from being dissolved, even when you are reporting annually.
