Keeping your business in good standing with the state where it is registered is essential for protecting your LLC or corporation and maintaining the legal status and credibility. Whether you’re an up-and-coming entrepreneur or managing an established company, understanding how to maintain business compliance can help avoid hefty penalties, administrative dissolution, and costly disruptions.
In this guide, we’ll cover some practical tips to keep your business compliant so that you can stay focused on doing what you do best – running your business.
Why Business Compliance Matters
Being in “good standing” means your business has met all of its state obligations, including paying required taxes or fees, as well as filing an annual report (if required in your state).
When you fall out of compliance, the state can revoke your good standing status – often without warning. That could lead to late fees, loss of liability protection, and even the dissolution of your business as a legal entity. Compliance isn’t just about busywork – it’s what keeps your business legally alive and protected.
File Annual Reports on Time
Most states require that businesses file an annual or biennial report to confirm their basic company information. Missing that filing can quickly lead to late fees and a “not in good standing” status.
The fix? Mark your calendar – or better yet, use a service like URA to track and file your annual reports automatically so that you never miss a deadline. Learn more about URA’s ACE Service here.
Keep Your Registered Agent Information Up to Date
Your registered agent is your state’s primary point of contact for legal and official documents. If your registered agent has outdated contact information for you, you risk missing critical notices or service of process. That’s a fast track to compliance trouble.
If you use a professional registered agent service like URA, make sure your registered agent is aware of any changes of address.
Maintain a Valid Business License
Depending on your industry and location, your business might need one or more licenses or permits to operate legally. These can expire or require periodic renewal.
Be sure to check with your local and state agencies to confirm what’s required—and keep those renewal dates on your radar.
If you’d like help with this process and want to ensure that you are not overlooking any required licenses or permits, URA has partnered with Harbor Compliance to offer managed annual license services. Learn more here.
Record Internal Changes Properly
If your business undergoes changes—like adding a new member, changing your company name, or moving to a new address—those changes may need to be reported to the state. This is dependent on the state.
Failing to update your formation documents or submit the right amendments can lead to fines or compliance issues. It’s one of those things that seems minor until it isn’t.
Pay Franchise Taxes and State Fees
Some states charge annual franchise taxes or maintenance fees even if your LLC or corporation isn’t turning a profit. These are easy to overlook but critical for staying in good standing.
Know your state’s fee schedule and payment deadlines, and make sure they’re baked into your annual budgeting.
Respond to State Notices Promptly
States don’t always make it easy—but when they send you something, it’s important. Whether it’s a compliance warning, an annual report reminder, or a late fee notice, don’t let it sit.
URA clients benefit from reliable document handling and fast notifications so you’re never left in the dark.
Use a Compliance Reminder Service
It’s easy to forget a filing deadline when you’re busy running your business. That’s why it helps to use a compliance calendar or reminder system.
URA offers tracking tools and email reminders that help you stay one step ahead of state requirements.
When you partner with a company like Universal Registered Agents, you’re not just outsourcing paperwork—you’re putting your compliance on autopilot. That means fewer missed filings, fewer surprises, and more time to focus on growing your business.
Stay in Good Standing with Confidence
Compliance is the kind of thing that’s easy to overlook—until it’s a problem. But with a few proactive habits (and the right partner), it’s easy to stay on top of what matters most.
Need help keeping your business in good standing? We’re here to help.
Call us at (855)236-9172 or get started with our professional registered agent services.
