Stay legally compliant | U.S. Small Business Administration

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href="/about-sba/open-government/about-sbagov-website" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/9313"> <span>About the SBA.gov website</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/open-government/sba-privacy-program" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/8707"> <span>SBA privacy program</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/open-government/privacy-act-request-guide" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/8708"> <span>Privacy Act request guide</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/open-government/information-quality" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/9347"> <span>Information quality</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/open-government/sba-guidance" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/8749"> <span>SBA guidance</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/open-government/ai-inventory" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/27208"> <span>AI inventory</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/open-government/made-america-waivers" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/27212"> <span>Made in America waivers</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/open-government/sms-terms-conditions" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/50982"> <span>SMS terms and conditions</span> </a> </li> </ul> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item usa-nav__submenu-item--level-2"> <a href="/about-sba/sba-newsroom" class="usa-nav__link usa-nav__link--level-2" data-drupal-link-system-path="node/9239"> <span>SBA Newsroom</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item usa-nav__submenu-item--level-2"> <a href="/about-sba/work-sba" class="usa-nav__link usa-nav__link--level-2" data-drupal-link-system-path="node/9237"> <span>Work for SBA</span> </a> <ul class="usa-nav__submenu-list usa-nav__submenu-list--level-3"> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/work-sba/employee-life" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/8719"> <span>Employee life</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/work-sba/jobs-sba" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/8718"> <span>Jobs at SBA</span> </a> </li> <li 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data-drupal-link-system-path="node/8723"> <span>SBA leadership</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/organization/contact-sba" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/8724"> <span>Contact SBA</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/organization/sba-initiatives" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/9370"> <span>SBA initiatives</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/documents" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/2434"> <span>Forms and documents</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/organization/observances" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/9481"> <span>Observances</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/organization/performance" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/8721"> <span>Performance</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/organization/federal-advisory-committees" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/9760"> <span>Federal advisory committees</span> </a> </li> </ul> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item usa-nav__submenu-item--level-2"> <a href="/about-sba/oversight-advocacy" class="usa-nav__link usa-nav__link--level-2" data-drupal-link-system-path="node/9235"> <span>Oversight and advocacy</span> </a> <ul class="usa-nav__submenu-list usa-nav__submenu-list--level-3"> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/oversight-advocacy/office-hearings-appeals" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/8961"> <span>Office of Hearings and Appeals</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/oversight-advocacy/office-inspector-general" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/8974"> <span>Office of Inspector General</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="/about-sba/oversight-advocacy/office-national-ombudsman" class="usa-nav__link usa-nav__link--level-3" data-drupal-link-system-path="node/8726"> <span>Office of the National Ombudsman</span> </a> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item"> <a href="https://advocacy.sba.gov/" class="usa-nav__link usa-nav__link--level-3"> <span>Office of Advocacy</span> </a> </li> </ul> </li> <li data-test="primaryNavMenu" class="usa-nav__submenu-item usa-nav__submenu-item--level-2"> <a href="/about-sba/information-other-languages" class="usa-nav__link usa-nav__link--level-2" data-drupal-link-system-path="node/29511"> <span>Information in other languages</span> </a> </li> </ul> </div> </div> </li> </ul> <div class="usa-nav__secondary"> <ul class="usa-nav__secondary-links"> <li class="usa-nav__secondary-item" data-test="navSecondaryItem"> <a href="/partners"> For Partners </a> </li> <li class="usa-nav__secondary-item" data-test="navSecondaryItem"> <a href="/about-sba/sba-newsroom"> Newsroom </a> </li> <li class="usa-nav__secondary-item" data-test="navSecondaryItem"> <a href="/about-sba/organization/contact-sba"> Contact us </a> </li> <li class="usa-nav__secondary-item" data-test="navSecondaryItem"> <a href="https://www.sba.gov/about-sba/information-other-languages"> Other languages </a> </li> </ul> <section aria-label="Search component"> <form class="usa-search usa-search--small" role="search" action="/search" method="get"> <label class="usa-sr-only" for="search-field">Search</label> <input class="usa-input" id="search-field" type="search" name="query" /> <button class="usa-button" type="submit"> <img src="/themes/custom/sba/dist/uswds/img/usa-icons-bg/search--white.svg" class="usa-search__submit-icon" alt="Search" /> </button> </form> </section> </div> </div> </nav> </header> <main class="main-content usa-layout-docs usa-section padding-top-0 main-content--sidebar" data-test="mainContent"> <a id="main-content" tabindex="-1"></a> <div class="grid-container"> <div class="grid-row"> <div id="block-sba-breadcrumbs" class="block block-system block-system-breadcrumb-block"> <nav class="usa-breadcrumb" aria-labelledby="system-breadcrumb"> <h2 id="system-breadcrumb" class="usa-sr-only">Breadcrumb</h2> <ol class="usa-breadcrumb__list"> <li class="usa-breadcrumb__list-item " > <a href="/" class="usa-breadcrumb__link"> <span>Home</span> </a> </li> <li class="usa-breadcrumb__list-item " > <a href="/business-guide" class="usa-breadcrumb__link"> <span>Business Guide</span> </a> </li> <li class="usa-breadcrumb__list-item " > <a href="/business-guide/manage-your-business" class="usa-breadcrumb__link"> <span>Manage your business</span> </a> </li> <li class="usa-breadcrumb__list-item usa-current" aria-current="page"> <span>Stay legally compliant</span> </li> </ol> </nav> </div> </div> <div class=""> <div data-drupal-messages-fallback class="hidden"></div> </div> <div class="grid-row "> </div> <div class="sba-layout-docs sba-layout-docs--sidebar"> <div class="layout-sidebar-first"> <nav aria-labelledby="sidebar-menu-navigation"> <h2 class="visually-hidden" id="sidebar-menu-navigation">Section navigation</h2> <ul class="usa-sidenav"> <li class="usa-sidenav__item first"> <a href="/business-guide/10-steps-start-your-business"> <span>10 steps to start your business</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/plan-your-business"> <span>Plan your business</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/launch-your-business"> <span>Launch your business</span> </a> </li> <li class="usa-sidenav__item expanded dropdown active active-trail"> <a class="usa-current" href="/business-guide/manage-your-business"> <span>Manage your business</span> </a> <ul class="usa-sidenav__sublist"> <li class="usa-sidenav__item first"> <a href="/business-guide/manage-your-business/manage-your-finances"> <span>Manage your finances</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/manage-your-business/hire-manage-employees"> <span>Hire and manage employees</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/manage-your-business/pay-taxes"> <span>Pay taxes</span> </a> </li> <li class="usa-sidenav__item active active-trail"> <a class="usa-current" href="/business-guide/manage-your-business/stay-legally-compliant"> <span>Stay legally compliant</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/manage-your-business/buy-assets-equipment"> <span>Buy assets and equipment</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/manage-your-business/marketing-sales"> <span>Marketing and sales</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/manage-your-business/ai-small-business"> <span>AI for small business</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/manage-your-business/strengthen-your-cybersecurity"> <span>Strengthen your cybersecurity</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/manage-your-business/prepare-emergencies"> <span>Prepare for emergencies</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/manage-your-business/recover-disasters"> <span>Recover from disasters</span> </a> </li> <li class="usa-sidenav__item"> <a href="/business-guide/manage-your-business/close-or-sell-your-business"> <span>Close or sell your business</span> </a> </li> <li class="usa-sidenav__item last"> <a href="/business-guide/manage-your-business/hire-employees-disabilities"> <span>Hire employees with disabilities</span> </a> </li> </ul> </li> <li class="usa-sidenav__item last"> <a href="/business-guide/grow-your-business"> <span>Grow your business</span> </a> </li> </ul> </nav> </div> <div class="usa-layout-docs__main"> <h1 data-test="title" > <span>Stay legally compliant</span> </h1> <div id="block-sba-content" class="block block-system block-system-main-block"> <article class="basic-page"> <div> <div class="basic-page__summary" data-test="pageSummary"> Keep your business compliant with state and federal business laws. Your legal responsibilities will depend on your business and location. </div> <div class="sba-toc sba-standard-margin-spacing"> <hr class="sba-toc__divider-first sba-standard-margin-spacing" role="presentation"> <h2 id="sba-toc-heading" class="sba-toc__heading js-toc-ignore">Content</h2> <nav id="sba-toc__nav" aria-labelledby="sba-toc-heading" class="sba_toc__nav sba-standard-margin-spacing"></nav> <hr role="presentation"> </div> <div class="sba-section-headings"> <h2 class="sba-section-headings" id="internal-requirements"> Internal requirements</h2> </div> <div class="paragraph paragraph--type--text-section paragraph--view-mode--default sba-standard-margin-spacing"> <div class="usa-prose field__item" data-test="fieldItem"><p>To stay legally compliant, you’ll need to meet external and internal business compliance requirements. Most external requirements involve filing paperwork or paying taxes with state or federal governments.</p> <p>Internal business requirements are for your own record keeping. You should document your compliance with internal requirements closely with company records. You might need them when you decide to <a href="/business-guide/manage-your-business/close-or-sell-your-business" data-entity-type="node" data-entity-uuid="9c7ed55e-b092-4ca9-8da8-0f00954c100c" data-entity-substitution="canonical" title="Close or sell your business">sell your business</a> or if a legal action is taken against your business.</p> </div> </div> <div class="sba-section-headings"> <h3 class="sba-section-headings" id="requirements-by-business-structure"> Requirements by business structure</h3> </div> <div class="paragraph paragraph--type--text-section paragraph--view-mode--default sba-standard-margin-spacing"> <div class="usa-prose field__item" data-test="fieldItem"><p>Corporations have the strictest internal requirements. Corporations should hold initial and annual director and shareholder meetings, record their meeting minutes, adopt and maintain bylaws, issue stock to shareholders, and record all stock transfers.</p> <p>LLCs have less strict internal requirements. However, they are generally advised to maintain an updated operating agreement, issue membership shares, record all membership interest transfers, and hold annual meetings.</p> <p>Other business structures have few, if any internal requirements. However, it’s rarely a bad idea to document important decisions with your business.</p> </div> </div> <aside class="sba-read-more-accordion" aria-labelledby="sba-read-more-accordion--heading-1238"> <h2 id="sba-read-more-accordion--heading-1238" class="sba-read-more-accordion__title">Comply before they buy</h2> <div class="usa-accordion usa-accordion--bordered sba-read-more-accordion__accordion"> <h3 id="john-and-kelly-learned-about-laws-and-regulations-their-business-has-to-follow-to-ensure-it-operates-legally" class="usa-accordion__heading"> <button class="usa-accordion__button" aria-expanded="false" aria-controls="sba-accordion-item" > John and Kelly learned about laws and regulations their business has to follow to ensure it operates legally. </button> </h3> <div id="sba-accordion-item" class="usa-accordion__content"> <div class="paragraph paragraph--type--text-section paragraph--view-mode--default sba-standard-margin-spacing"> <div class="usa-prose field__item" data-test="fieldItem"><p>John and Kelly’s auto repair shop has to comply with state and federal business laws, as well as industry regulations.</p> <p>As an auto repair shop, John and Kelly’s business has to follow environmental regulations regarding the handling of hazardous liquids and other materials. They check the website of their state Environmental Protection Agency and find a checklist of regulations they must follow and permits they have to obtain.</p> <p>Some of their employees have been trained and certified by EPA-approved organizations on the proper way to handle hazardous materials. John and Kelly keep records of the certificates and permits.</p> <p>Part of staying legally compliant means paying all federal and state taxes. Additionally, John and Kelly renew their business license along with other local permits they need to continue to stay within code and operating regulations.</p> <p>John and Kelly’s business is also required to display certain posters that inform employees of their rights. They get these posters free of charge from the U.S. Department of Labor.</p> <p>John and Kelly’s business has met all its filing requirements and is legally compliant.</p> </div> </div> </div> </div> </aside> <div class="sba-section-headings"> <h2 class="sba-section-headings" id="ongoing-state-filing-requirements"> Ongoing state filing requirements</h2> </div> <div class="paragraph paragraph--type--text-section paragraph--view-mode--default sba-standard-margin-spacing"> <div class="usa-prose field__item" data-test="fieldItem"><p>Your <a href="https://www.sba.gov/business-guide/manage-your-business/pay-taxes">annual filing requirements</a> are based on your <a href="https://www.sba.gov/business-guide/launch/choose-business-structure-types-chart">business structure</a> and the state. Still, there are a few common requirements to look out for:</p> <ul> <li><strong>Annual report or biennial statement.</strong> Most states require one or the other. Some states set the due date on the anniversary of the business formation date, and other states pick a specific day for all businesses.</li> <li><strong>Statement filing fees.</strong> Fees normally accompany the annual report or biennial statement, which can exceed $300.00.</li> <li><strong>Franchise tax.</strong> Some states charge franchise taxes for corporations or LLCs that operate with their border. Formulas vary by state.</li> <li><strong>Initial reports.</strong> Some states require initial reports and fees shortly after incorporation.</li> <li><strong>Articles of Amendment.</strong> If you’ve made important changes to your company — like address, name, new shares, or membership — report it with articles of amendment.</li> </ul> </div> </div> <div class="sba-section-headings"> <h2 class="sba-section-headings" id="ongoing-federal-filing-requirements"> Ongoing federal filing requirements</h2> </div> <div class="paragraph paragraph--type--text-section paragraph--view-mode--default sba-standard-margin-spacing"> <div class="usa-prose field__item" data-test="fieldItem"><p>Most businesses won’t have federal requirements beyond paying federal taxes and complying with the Affordable Care Act. Make sure that you meet all federal tax obligations, including income and employer taxes.</p> <p>The Affordable Care Act requires businesses with 50 or more employees to <a href="https://www.irs.gov/affordable-care-act/questions-and-answers-on-information-reporting-by-health-coverage-providers-section-6055">report to the IRS</a> that they provide health coverage.</p> <p>If your business has any federal <a href="/business-guide/launch-your-business/apply-licenses-permits" data-entity-type="node" data-entity-uuid="e3f12b44-181d-4b0f-91d1-9c2586db3eeb" data-entity-substitution="canonical" title="Apply for licenses and permits">licenses, permits, or certificates</a>, you’ll need to keep those up to date.</p> </div> </div> <div class="sba-section-headings"> <h3 class="sba-section-headings" id="other-federal-requirements"> Other federal requirements</h3> </div> <div class="paragraph paragraph--type--text-section paragraph--view-mode--default sba-standard-margin-spacing"> <div class="usa-prose field__item" data-test="fieldItem"><p>Some business activities are regulated but don’t require filing. Make sure to stay in compliance with any applicable <a href="https://www.ftc.gov/tips-advice/business-center/advertising-and-marketing/advertising-and-marketing-basics">marketing and advertising laws</a>, <a href="https://www.copyright.gov/">copyright laws</a>, <a href="https://www.dol.gov/general/topics/posters">workplace poster laws</a>, <a href="https://www.osha.gov/index.html">workplace health and safety laws</a>, and the <a href="https://www.ada.gov/topics/title-iii/">Americans with Disabilities Act (ADA)</a>.</p> </div> </div> <div class="sba-section-headings"> <h2 class="sba-section-headings" id="licenses-permits-and-recertification"> Licenses, permits, and recertification</h2> </div> <div class="paragraph paragraph--type--text-section paragraph--view-mode--default sba-standard-margin-spacing"> <div class="usa-prose field__item" data-test="fieldItem"><p>The documents for staying legally compliant vary based on your industry and location.</p> <p>Maintain any licenses, permits, or certificates your business received from your state, city, or county. Renewal requirements vary, so it’s best to check with local business licensing offices.</p> <p>For example, most restaurants need to regularly renew health and safety certificates. Businesses that sell regulated items like tobacco, alcohol, or tires might need to regularly renew their sales permits. For professional services like plumbing or nursing, the state might require certification with a third-party board to keep your license.</p> <p>For federal licenses, permits, and certificates, check with the issuing institution to confirm renewal requirements for your business. Here’s a list of some common federal agencies and departments that small businesses register with:</p> <ul> <li><a href="https://www.aphis.usda.gov/aphis/resources/permits">U.S. Department of Agriculture (USDA)</a></li> <li><a href="http://www.ttb.gov/index.shtml">Alcohol and Tobacco Tax and Trade Bureau (TTB)</a></li> <li><a href="https://www.faa.gov/licenses_certificates/">Federal Aviation Administration</a></li> <li><a href="http://www.atf.gov/">Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)</a></li> <li><a href="https://www.fws.gov/permits/">U.S. Fish and Wildlife Service</a></li> <li><a href="https://www.fisheries.noaa.gov/">National Oceanic and Atmospheric Administration</a></li> <li><a href="https://www.fcc.gov/general/consumer-information-obtaining-licenses">The Federal Communications Commission</a></li> </ul> </div> </div> <section id="block-counselormatchcta" class="sba-call-to-action sba-standard-margin-spacing padding-y-0" style="background-color:#ffffff"> <div class="sba-call-to-action__inner"> <div class="sba-call-to-action__content left dark short"> <h3>Need help? 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