While you may already have a business, do you have the proper business certificates, minutes, and agreements to make it fully compliant with what’s expected? With a thorough review and gap analysis of what you have, you will be better prepared should any issues in your business arise. Once you know you have everything in place, that confidence will take your business to the next level.
Fines and even dissolution of your business entity leaving you open to liability could happen to you if you’re not careful with your record keeping. Just as important as having an accurate set of books for your business, the documents that you have for the actual creation of the entity itself are even more critical. Is your operating agreement up to date?
Sometimes it’s the simplest things that are always missing, but just because they’re simple doesn’t mean they’re any less important.
For corporations and other structures, keeping bylaws, the minutes of board meetings, and obtaining all of the required business licenses is not optional. Even if you’re a single person corporation, that requirement doesn’t go away. It’s better to have everything reviewed by a professional, and then fix things so they’re in order when you’re not under the pressure of a situation when they’re required. Something as easy as a little bit of extra paperwork here and a little there could be the difference between doing something correctly, or having it harm your business. Knowing those intricacies is an important part of your business.
It’s important to realize that the law governing business varies from State to State.
Have you made the correct filings for doing business in a particular State? Are you collecting the correct sales tax for each sale? If your business entity was formed in a different state, you’ll need to file additional documents to legally do business in the state you are in or doing business in. Without those filings, you could lose the valuable protections your business entity gives you while conducting business.
Mail order and Internet businesses have different requirements as well. When you are selling across State lines, you especially need to have everything in order. You’re increasing your chances that something isn’t exactly right, at the same time that you’re increasing your opportunity to do more business. A little advice at the right time and place could prevent a huge hassle later.
Business owners tend to be fearlessly independent people, not wanting to delegate anything and leaving everything up to their skills in handling it. While that works for most things, the law doesn’t forgive as easily, and is much less lienient with mistakes. Knowing your rights as a business owner is important and definitely not something best left to chance.