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Why Company Guard?
States require registered businesses to file periodic, usually annually, reports with information about your company. In addition to providing information, these state requirements also obligate companies to pay a fee. These fees and information requirements a different for each state, making it difficult to track filing deadlines and fees. Many business fail to submit their annual reports on time and are subject to late fees and penalties. Failure to do so could result in:
- Loss of good standing with the state
- Administrative dissolution
- Losing your legal protection as a business, exposing you to personal liability
- Costly penalties and interest
When you decided to start your company, you made a decision about what type of company you wanted to set up - Corporation, LLC, or some other entity type. You understood that by incorporating your business, you gained certain protections of your personal assets separate from the company's assets and, in some cases, beneficial tax consequences. Once incorporated, a business must adhere to the requirements to stay in compliance, often referred to as maintaining "good standing".
Now that your company's doors are open, what happens next? Many new business owners are unaware of the requirements necessary to keep their company in good standing. Certain actions must be taken to demonstrate the business is acting in accordance with the incorporating formalities. Some of these requirements include filing annual reports, paying annual fees to the state and conducting necessary board and shareholder meetings to document the company's business activities. Failure to do these activities can result in loss of the corporate protection of assets, also called "piercing the corporate veil". If a company's "corporate veil" is pierced, then the owners' personal assets are no longer protected or separate from the company's assets.
NRAI’s Company Guard can help you protect you from losing your company’s good standing status. Company Guard takes the guess work and hard work out of keeping your company in compliance with the state. Whether you are in 1 state or doing business in 10 states, Company Guard will help you protect your business.
