Compliance Rules

Compliance Rules.

The taxing authorities will state that a corporation must act like a business to gain the privileges of a business.

Ensuring your S-Corporation’s compliance with state and federal laws is an ongoing process. It begins with properly electing S corporation status and continues throughout the corporation’s life. Understanding the fundamentals will help you identify areas where your S-Corporation might need to take action to become compliant with applicable laws.

It is important for S-Corporations to create and maintain records of their structure, management, finances, and actions. State laws require that certain records be kept, but corporations should strive to exceed the minimal record-keeping requirements.

Tax compliance for any business is critical. In addition to IRS requirements, businesses in different states will have to adhere to local as well as federal and state laws to stay compliant in their tax filings.

  • Keep meticulous and up-to-date records on all transactions, earnings and financial dealings.
  • Keep your records of the Employee Identification Number (EIN)
  • Maintain copies of company Bylaws and Articles of Incorporation agreements
  • Shareholders stock shares and distribution records of stock transfers.
  • S-Corporations must keep records for the annual renewal with the state
  • Track the annual meetings minutes
  • File the corporation and individual tax returns accurately and on time
  • Keep up to date with the Sales & Use Tax filings

Staying Tax Compliant

For any corporation to keep up with its local and federal tax laws, it needs a corporate tax plan. This is where a certified tax professional can help.

Once any business establishes itself as a corporation, it has an obligation to prove it as such to the tax authorities.

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