LLC Maintenance Checklist

A Blog Post

Why is LLC Maintenance Important?

But a LLC is subject to the state law so you must ensure to take care of your LLC state law and also proper maintainance of your business. If you don’t fulfill these duties, there’s a chance you’ll incur penalties, get in legal jeopardy, or even see your LLC dissolve.

LLC Maintenance Checklist

1. File Annual Reports

Except for Illinois, Illinois and North Carolina, every state requires LLCs to file annual or biennial reports. These reports let the state know about your latest LLC information — addresses and members.

  • Deadline: Find out your state’s own specific filing deadline.
  • Fee: Be aware of any penalties that can come from not paying the filings fees.

2. Permit/Renew Business Licenses and Permits

Make sure all business licenses and permits are current. Renewal frequency varies by some of them, depending on the industry: yearly or biannually.

  • Tip: The first setting is to set reminders for renewal deadlines.

3. Maintain Accurate Records

Record everything about business transactions, meeting minutes, contracts as well as financial statements keenly.

  • Best Practices:
    • There is accounting software for financial reporting.

Explanation:

Recording and bookkeeping is using accounting software for financial accounting.

  • Save physical as well as electronic copies safely.

4. Pay Taxes on Time

Remain federal, state and local tax compliant with income tax, sales tax, and payroll tax.

  • Tip: Get advice from a tax expert on how to do your taxes the right way.

5. Change the Operating Agreement LLC Update

Keep your LLC’s operating agreement up to date with any changes in ownership, roles, or responsibility that will occur at some time.

  • When to Update:
    • Adding or removing members.
    • Switching from profit sharing arrangements.

6. Personal and Business Finances are separate.

Keep personal and business finances separate so that you can protect liability.

  • How to Ensure Separation:
    • Open a business bank account with your company being an account.
    • Keep your personal expenses and your business expenses separate.

7. Hold Member Meetings

If your state isn’t legally required to have regular (regular here meaning at least annually, or semi-annually), having member meetings can be very helpful, especially in keeping you transparent and moving the club to make decisions efficiently.

  • Document Decisions: Keep in meeting minutes record decisions and resolutions taking place.

8. Consequently, monitor State compliance requirements.

The state’s compliance requirements for LLCs can change so you must be willing to be updated about that.

  • Tip: Subscribe to legal or business newsletters for updates.

Conclusion

Maintaining your LLC proactively will lead to long term success and compliance. Different elements to this checklist will protect your business, help you avoid unnecessary penalties, and enable you to focus on growth.

These maintenance best practices are critical to secure the future of your LLC, start today.

Start today and secure the future of your LLC by implementing these maintenance best practices!

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