In 2022, architecture, engineering, and construction businesses (AEC) expect significant opportunities to come from the passing of the Infrastructure Investment and Jobs Act (IIJA).
To prepare, forward-thinking firms should be planning for expansion into new jurisdictions and maintaining good standing in their current states of operation. Opportunities in new states involve fulfilling all business registrations and licensing requirements in foreign jurisdictions (out of state, not out of the country) and can take months to secure.
Maintaining Good Standing Compliance
A number of elements go into ensuring your business complies with state regulations. To remain in good standing, you need to:
- Ensure good standing with each secretary of state in which you currently do business. If you are unaware of the status of your entity in a state, we can run a simple compliance check to confirm whether you are in good standing and what information is on file with state agencies. Contact us to help you.
- Research state requirements, which may have changed.
- Evaluate the need for new or updated licenses for the firm and individual responsible parties, and submit the necessary documentation.
- Verify registered agent status. If you are uncertain who is acting as your registered agent or if you are not receiving the level of service you expected and need, we can confirm your registered agent status for you. We provide nationwide service if you need a registered agent and suggest consolidating registered agent services into a single provider.
- File annual reports, as needed, knowing your filing deadlines and statutory fees. If you are looking to outsource your annual report filings, we can help. We can ensure your reports are filed on time while eliminating the filing workload from your duties.
- Rectify delinquent statuses.
- Close registrations from states in which you are inactive. Remember that your obligations to the state continue until you have officially withdrawn. Even if your business is in good standing in the other states where you operate, failing to terminate your registration could result in significant penalties.
- Foreign qualify in states outside your domicile, where you conduct business or plan to conduct business in 2022. If you have recently purchased new property, hired employees, opened offices, or conducted business activities in new states, there are likely actions you need to take in order to stay in compliance with state laws. You may need to register for taxes, obtain a certificate of authority, or become licensed in new jurisdictions.
- Research state requirements.
- Register the entity at the state level with the secretary of state.
- Apply for licenses – both firm and individual licenses – especially the qualifiers or responsible parties.
- Open required tax accounts (state and local).
- Verify where you have a sales tax nexus and the status of your products and services subject to sales tax.
- Maintain recordkeeping to keep good standing, including:
- Notify applicable state agencies when corporate records have changed. Failure to notify the proper authorities of changes to your corporate records could result in loss of good standing or forfeiture of licenses.
- Verify the state has the latest information regarding new addresses, changes in owners and officers, and other changes to contact information.
- Keep copies of organizational records, tax returns, contracts, policies, resolutions, etc.
If you need help with the compliance aspects of your business, please get in touch with us. At Harbor Compliance, our specialists have helped thousands of companies with their compliance needs at all phases of the corporate lifecycle. Our managed software solution can save you time, effort, and money. We can help you as much or as little as you require. Our purpose-built portfolio management software provides full visibility into all aspects of your firm’s compliance in a simple, intuitive interface. We efficiently manage the registrations, filings, and renewals needed to maintain good standing across the USA.
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Harbor Compliance does not provide tax, financial, or legal advice. Use of our services does not create an attorney-client relationship. Harbor Compliance is not acting as your attorney and does not review information you provide to us for legal accuracy or sufficiency.