Monthly compliance monitoring

Federal-level requirements to monitor monthly (or on deposit schedules): Employer tax withholding, deposit and reporting obligations (federal income tax withholding, Social Security, Medicare, and federal unemployment).

Employers must follow IRS deposit schedules and guidance (Publication 15) to determine monthly/semimonthly/quarterly deposit obligations and due dates. Failure to deposit timely can result in penalties and interest.

Beneficial Ownership Information (BOI) / FinCEN requirements: FinCEN’s Small Entity Compliance Guide (v1.4, Mar 2025) provides the current BOI reporting rules and timelines. Notably, an interim final rule (Mar 26, 2025) revised the definition of "reporting company"—narrowing certain reporting obligations.

BOI initial reporting timelines and update/correction timelines are specified; updated reports and corrections have specific short timelines (e.g., corrections/updates generally required within 30 days of discovery for inaccuracies).

State-level entity maintenance (annual/biennial reports, franchise taxes, registered agent): Most states require annual or biennial reports (names vary: annual report, statement of information, periodic report).

Deadlines, fees, and filing triggers differ state-by-state. Missing filings can lead to penalties, loss of good standing, or administrative dissolution.

Some states charge franchise taxes or flat state LLC taxes (e.g., California’s $800 minimum franchise tax is a commonly-cited example). Sales & use tax and other state/local tax filings: Sales tax filing frequency (monthly, quarterly, annually) is determined by state rules and by a filer’s taxable volume and thresholds—many businesses must file monthly if volumes exceed thresholds; smaller sellers often file quarterly or annually.

Check your state Department of Revenue or a reputable sales-tax service resource for state-specific filing frequency. Licenses, permits, and local obligations: Many businesses must renew local business licenses or industry permits on periodic cycles; track renewal dates and fees.

Practical monthly compliance monitoring items and process recommendations: Monthly checklist items: reconcile receipts and expenses; review payroll runs and confirm tax deposits; confirm sales tax collected and determine filing frequency due status; verify registered agent is current and scanned service-of-process notices; monitor entity status and upcoming annual/biennial report windows; check BOI reporting triggers (if applicable) and any updates required; confirm licenses/permits expiry and begin renewal process if due within 30–60 days; run a compliance calendar and automated reminders; keep corporate records updated (operating agreement amendments, meeting minutes) and maintain separation of personal/business finances.

Process & tools: centralize a compliance calendar (shared cloud calendar or compliance platform), set automated alerts for 60/30/7 day lead times, use payroll providers (or EFTPS) to automate federal payroll tax deposits, use state DOR online portals for sales tax filing, consider registered agent or compliance service for multi-state filings, and maintain an organized document repository for filings and certificates.

Enforcement and remediation: States commonly impose penalties and can administratively suspend or dissolve entities for missed filings. FinCEN penalties for willful failure to report BOI can include civil penalties (up to $500 per day) and criminal penalties.

Correct errors promptly—FinCEN provides safe harbor for voluntary corrections within certain periods.

Federal-level requirements to monitor monthly (or on deposit schedules): Employer tax withholding, deposit and reporting obligations (federal income tax withholding, Social Security, Medicare, and federal unemployment).

Employers must follow IRS deposit schedules and guidance (Publication 15) to determine monthly/semimonthly/quarterly deposit obligations and due dates. Failure to deposit timely can result in penalties and interest.

Beneficial Ownership Information (BOI) / FinCEN requirements: FinCEN’s Small Entity Compliance Guide (v1.4, Mar 2025) provides the current BOI reporting rules and timelines. Notably, an interim final rule (Mar 26, 2025) revised the definition of "reporting company"—narrowing certain reporting obligations.

BOI initial reporting timelines and update/correction timelines are specified; updated reports and corrections have specific short timelines (e.g., corrections/updates generally required within 30 days of discovery for inaccuracies).

State-level entity maintenance (annual/biennial reports, franchise taxes, registered agent): Most states require annual or biennial reports (names vary: annual report, statement of information, periodic report).

Deadlines, fees, and filing triggers differ state-by-state. Missing filings can lead to penalties, loss of good standing, or administrative dissolution.

Some states charge franchise taxes or flat state LLC taxes (e.g., California’s $800 minimum franchise tax is a commonly-cited example). Sales & use tax and other state/local tax filings: Sales tax filing frequency (monthly, quarterly, annually) is determined by state rules and by a filer’s taxable volume and thresholds—many businesses must file monthly if volumes exceed thresholds; smaller sellers often file quarterly or annually.

Check your state Department of Revenue or a reputable sales-tax service resource for state-specific filing frequency. Licenses, permits, and local obligations: Many businesses must renew local business licenses or industry permits on periodic cycles; track renewal dates and fees.

Practical monthly compliance monitoring items and process recommendations: Monthly checklist items: reconcile receipts and expenses; review payroll runs and confirm tax deposits; confirm sales tax collected and determine filing frequency due status; verify registered agent is current and scanned service-of-process notices; monitor entity status and upcoming annual/biennial report windows; check BOI reporting triggers (if applicable) and any updates required; confirm licenses/permits expiry and begin renewal process if due within 30–60 days; run a compliance calendar and automated reminders; keep corporate records updated (operating agreement amendments, meeting minutes) and maintain separation of personal/business finances.

Process & tools: centralize a compliance calendar (shared cloud calendar or compliance platform), set automated alerts for 60/30/7 day lead times, use payroll providers (or EFTPS) to automate federal payroll tax deposits, use state DOR online portals for sales tax filing, consider registered agent or compliance service for multi-state filings, and maintain an organized document repository for filings and certificates.

Enforcement and remediation: States commonly impose penalties and can administratively suspend or dissolve entities for missed filings. FinCEN penalties for willful failure to report BOI can include civil penalties (up to $500 per day) and criminal penalties.

Correct errors promptly—FinCEN provides safe harbor for voluntary corrections within certain periods.