Compliance

After the initial step of formation, both corporations and LLCs face ongoing compliance requirements; however, business owners, especially small business owners, often neglect these requirements. Whether the excuse is not knowing about them or not having time to address them, not satisfying these requirements is a big mistake.

Failing to complete ongoing requirements regularly and in a timely manner can have dire consequences. A company can lose its corporate or LLC entity status, and consequently lose the limited liability protection it affords the owners. Given that limited liability protection is often the primary reason business owners form a corporation or LLC, an owner should take all the necessary steps to protect it and the other benefits corporations and LLCs afford