Business compliance is a catch-all term for how well a company’s follows the laws and regulations governing its business. Laws will vary depending on your industry, where your business is based, and how you’ve chosen to structure your company.
If “compliance” feels like a heavy lift—especially on the days you are dealing with marketing, production, and quarterly taxes—consider this: addressing financial, safety, and other regulations takes a lot of the guess work out of managing your business. In fact, it’s what will set your business up for long-term success!
Why is business compliance important?
External Requirements:
- Your industry decides these, as well as federal, state, and local laws.
- You can be subject to fees and penalties that are chosen by the state rules, industry standards, and federal laws.
Internal Requirements:
- These provide transparency into how your business operates with integrity
- They are also dictated by financial and other rules that come with filing a corporation or LLC.
- Penalties (such as reprimands, probation, or dismissal) are determined by company executives, board members, and managers.
