Forming and operating a business can be overwhelming as there are many compliance regulations that owners need to follow from time to time. Failing to adhere to such requirements might result in penalties that may severely damage your business’ reputation and damage the operation. To make it easier to comply with such regulations, The Emmett Group has curated a compliance checklist for companies. Keep in mind that this isn’t an exhaustive list, but just a collection of the mandatory compliances.

1. Tax Requirements

  • Keep and store complete and precise financial records of the company, including records of expenses and income.
  • File all state and federal taxes, including franchise, excise, privilege, sales, as well as employment taxes.
  • Send an annual report to the members and directors within the required period after the close of the fiscal year.
  • Prepare required accounting reports and financial information.

2. Personnel Requirements

  • Obtain and store required documents and proofs of all employees’ citizenship.
  • Classify the employee as independent contractors or full-time staff.
  • Ensure a fair recruiting and hiring process without discrimination based on national origin, religion, sex, race, and family background.
  • Provide the employees with a comprehensive handbook that covers protective policies against sexual harassment or discrimination.
  • Meet the basic wage standards and requirements.
  • Prepare and keep records of serious occupational illnesses and injuries that are compliant with OSHA.
  • Protect the employment status and keep employment contracts with confidentiality and non-compete clauses.
  • Ensure a legal termination of the employees.

3. Corporate Requirements

  • Maintain accurate and adequate records and books of corporate operations.
  • Guarantee the compliance with the securities laws when purchasing or selling stock and other securities.
  • Register the company lawfully with clear ownership.
  • Make state corporate filings, including the annual reports.
  • Appoint the directors and elect the officers legally.
  • Prepare minutes for all committee, board, and shareholder meetings.

4. Promotion and Advertising Requirements

  • Get and verify the status of all copyrights, trade names, and trademarks.
  • Post appropriate conditions and terms on the official site of the company.
  • Ensure that the domain name doesn’t infringe on the service marks or trademarks of other organizations.
  • Engage in non-deceptive and truthful commercials or promotion programs.
  • Get official consent from the creators before use third-party content.

5. Other Important Requirements and Regulations

  • Meet all standards in the Consumer Product Safety Act.
  • Ensure the compliance with every loan covenant.
  • Review the insurance coverage.
  • Register legally and properly in all states that the business is operating.
  • Secure all current licenses, both federal and state.
  • Acquire valid permits for every business operations.
  • Protect all of the confidential secrets in trading.
  • Guarantee that there aren’t any conflicts of interest in every business relationship and disclose any of these issues.
  • Make a legal and fair written agreement for every business deal and transaction.
  • Verify the compliance with all warranties and representations.
  • Check if the agreements include the guarantee from liability for defective services and products.
  • Meet all of the environmental standards.
  • Store and protect all business data properly, especially client information.
  • Ensure that every relation with the competitors are compliant with the antitrust laws.

Building and operating a business comes with a lot of responsibilities. One of the biggest responsibilities that a business owner faces is ensuring that they are compliant with rules and regulations. This simple compliance checklist for companies will give business owners an idea of how to structure their own checklist, and how to avoid getting penalized for not adhering to any regulations. 

Published by Jason Roy