USA business structure compliance

For US business owners and LLC founders, compliance involves several key areas at both federal and state levels. Federally, obtaining an Employer Identification Number (EIN) is crucial for opening bank accounts, hiring employees, and filing federal taxes. Businesses must also be aware of federal tax obligations and potential S-corp elections (Form 2553). A significant federal requirement is the Beneficial Ownership Information (BOI) report to FinCEN, which corporations and LLCs must file unless exempt. Companies formed on or after January 1, 2024, have additional applicant reporting duties, and updates must be made within 30 days of any changes. At the state level, ongoing compliance typically includes annual or biennial reports and, in some states, franchise taxes. Maintaining internal records like bylaws or operating agreements is also essential. Specific state requirements vary; for example, Delaware is known for its franchise tax and corporate reporting rules, often favored for its business-friendly laws. California LLCs face annual or biennial filing requirements and may incur additional fees, alongside state-specific tax rules from the Franchise Tax Board (FTB). Other state-specific considerations can include publication requirements, such as those in New York. Beyond these, businesses must address employer obligations like payroll, I-9 verification, and filing Form 941. Sales tax nexus, particularly in light of the Wayfair decision, and securing necessary licenses and permits are also critical. Adhering to these federal and state regulations, along with general best-practice checklists, ensures legal compliance for US businesses.