Running your LLC or corporation comes with certain legal and financial commitments. Meeting these ongoing compliance requirements keeps your business in good standing. Your commitments will vary depending on whether you’re running an LLC or a corporation and the states where you run your business.
In this guide, we’ll look at general, overall compliance requirements and discuss specific ones for the four most popular business formation states: California, Delaware, Florida and Texas. We’ll start with general requirements, then move on to LLC compliance requirements and corporation compliance requirements.
Maintain a Registered Agent Who Can Accept Legal and Official Correspondence on Behalf of Your Business
All LLCs and corporations are required to provide the details of a Registered Agent to the business formation agency in their state. This Registered Agent must be available during business hours to receive legal documents and official correspondence on behalf of the business. This requirement is true in all states, including California, Delaware, Florida and Texas.
Submit Periodic Reports to the Business Formation Agency in Your State
Depending on the state you operate in, your LLC or corporation must file a report with the business formation agency in your state. Most states require you to file an annual report each year, although some states require them every two years, and other states don't require them at all. There is normally a fee associated with this filing. You can find out about your reporting requirements using Incfile’s ongoing compliance tool.
Delaware LLCs must pay franchise tax every year. Delaware corporations must file an annual report and pay franchise tax every year.
California LLCs must file a “Statement of Information” every other year and pay franchise tax every year. California corporations must file a “Statement of Information” and pay franchise tax every year.
Florida LLCs and Florida corporations must file an annual report every year.
Texas LLCs and Texas corporations must file a Public Information Report and a Franchise Tax Report every year and pay a franchise tax fee.
Update Information About Changes to LLC or Corporation Structure, Officers and Similar
If there are significant changes to your corporation or LLC, then you must update your state’s business formation agency by filing the relevant forms. Some of the reasons that you may need to file and update information include:
Change of Registered Agent
Change in the officers or members of a corporation or LLC, including names and addresses
Change in the name of your business
Change in your business address
Changes to the legal status or entity type of your business
Dissolution of your business
There may also be other times when you’re required to update business information. Check your state’s agency websites for more information.
Maintain Business License Requirements for Your Corporation or LLC
Many corporations and LLCs are required to have business licenses that must be updated and paid for on a regular basis, typically every year. Business license requirements vary significantly depending on the types of products and services you sell, professional qualifications, the sectors you operate in, where you’re located and numerous other factors.
For example, licenses might include state or federal tax identification numbers, seller permits, membership in a professional organization, renewal of qualifications or certificates, building permits, occupation permits, health permits, etc.
Incfile provides a complete Business Licenses and Permits service that will let you know about all of the permits and licenses that you will need to apply for and maintain. In addition to federal, specialized and other types of business licenses, others required by particular states include: