The new year is here! As you prepare for the months ahead, it’s important that you make (and use) a compliance list to help you start off on the right foot. With a comprehensive list, you may find some outstanding business responsibilities that still need to be completed. Or, you may discover regulatory deadlines coming up unexpectedly fast. Finally, you may determine some items you can go ahead and complete to get a jumpstart on the new year.
Whatever the case, creating a compliance strategy and conducting an entity health evaluation now can give you peace of mind. A proactive entity “check-up” ensures your organization remains in good standing with the Secretary of State and avoids fines and penalties.
Understanding Compliance for Legal Entity Management
Effective entity management involves overseeing the structure and governance of your business entities. As we kick-off the year, you should carve out time to review and update your corporate records, if you haven’t already. Your corporate records might include articles of incorporation, bylaws, and shareholder agreements. A comprehensive update to your records can help ensure that your organization aligns with current regulations and can operate at its peak.
However, legal entity management compliance can be challenging for many companies – especially those juggling multiple entities. Because there are so many government-issued rules and regulations, organizations can benefit from implementing a solid entity management strategy – otherwise, it may be easy to overlook an upcoming filing deadline or forget to pay an important fee.
Compiling Your Beginning-of-Year Compliance “To-Dos”
When deciding between acting as your own or leveraging a third party corporate service provider, it’s crucial to consider both options carefully. Opting to act as your own may seem cost-effective initially, but it can significantly increase the risk of compliance issues and legal disputes, in addition to being very time consuming. Handling these responsibilities personally can take valuable time away from value-add activities that are critical to your business’s growth and success. Additionally, lacking confidence in your abilities and encountering any mishap could potentially leave your business vulnerable to consequences such as fines, penalties, loss of name rights, and even administrative dissolution. Given the variations in requirements across different states, utilizing a registered agent service can ensure that you remain organized and compliant nationwide, mitigating potential risks and allowing you to concentrate on your business.
Make a Plan
In the midst of daily business functions and with varying regulations, it can be easy to overlook a deadline. That’s why it is important to plan ahead, account for all upcoming due dates, and document the process for consistency moving forward. When you have a steady compliance plan, you’re more likely to stay on top of things and avoid missing a step.
Create a Compliance Calendar
A detailed calendar outlining all of the regulations and deadlines by which you must comply can be a hack for ensuring ongoing compliance across all of your entities. On the calendar, you can track important deadlines for filing annual reports, renewing licenses, and other regulatory requirements. An organized calendar can prevent oversights and ensures that your organization stays on top of all necessary filings.
Note: EntityKeeper automates notifications about your upcoming deadlines so you never miss a beat!
Monitor and Prepare for Annual Report Filings
Most jurisdictions require businesses to file annual reports. Typically, annual reports provide an overview of key information about the company’s activities and financial status. These reports need to be accurately completed and submitted before the due date to avoid penalties.
Leveraging Entity Management Software for Efficient Compliance
Consider implementing entity management software to streamline the entity management process. An entity management solution like EntityKeeper can eliminate error-prone, time-consuming manual tasks that prevent teams from focusing on other valuable, revenue-generating work. Entity management software gives you the tools to monitor and track important deadlines. Plus, automated alerts and email notifications notify you of upcoming due dates so you never miss a deadline.
Staying Proactive to Mitigate Risks
Don’t limit compliance efforts to the start of the year. Implement a system for ongoing compliance throughout the year. You can do this by regularly reviewing changes in regulations and adjusting your entity management strategy.
As the year begins, you want to ensure that all of your ducks are in a row to prevent challenges down the road. By staying proactive, leveraging technology, and seeking professional guidance, you can ensure a smooth start to the upcoming year.
Ready to ensure your entity is in good standing? Get your complimentary entity health evaluation today!
When you select EntityKeeper as your registered agent, you’ll receive a free entity health performance evaluation to assess your entity’s standing. If we find any issues or gaps in your status, we’ll help you to understand the problem and then guide you through the process of resolving it.
Contact us to explore our Corporate Services and get more information on your entity health evaluation.
