Corporate Filing Laws Every Small Business Should Know

Posted on: October 25th, 2024 by webolutions

Starting or maintaining a small business is a big job even before you deliver your products or services. Today’s legal and regulatory environment is more complex with each passing year. Gone are the days when a business owner simply found a place to set up shop, paid the first month’s rent to the landlord, and opened the front door for business. Now business owners must consider what form of business entity best suits their business. Should it be a corporation, a partnership, or a limited liability company? What tax reporting obligations does my business have to the state and to the federal government? Do I need to file documents with the federal government in addition to federal tax returns? Here are some state and federal laws you should be familiar with.

1. Colorado law requires corporations and LLC’s to file annual reports with the Colorado Secretary of State’s Office. Failure to do so will result in your business entity to lose it’s good standing status as a business entity. Although you may continue to operate your business, you may lose your protection from personal liability for any negligent acts that may cause harm to your customers or clients. Your business insurance likely does not cover you for your personal liability.
2. Corporate business entities are now required to file reports with the federal government under the recently enacted Corporate Transparency Act. This filing is in addition to any filings your business may be required to make to any federal regulatory agency that applies to your products or services.
3. As a tenant, your business may be required to provide your landlord with information about whether your product poses any environmental hazards to other tenants in your building. You need to determine what information you need to provide to your landlord or any state or local agency monitoring community health and the environment.
4. Colorado law requires special licenses to operate many businesses for certain professions and industries. For example, physicians, nurses, nurse practitioners, and massage therapists all must be licensed to do business in the state, even though they may not be selling a product. Local governments may also require business licenses. Restaurant businesses have many regulatory requirements at both the state and local levels. Become familiar with any licensing requirements for your business.

Sutherland Legal Services can do a legal check-up for you so you are current with all legal requirements for your business.