Once you have set up your business entity, the work doesn’t end there. Depending on the type of entity, and the state where your business is located, continual upkeep of the entity is usually required.

An LLC may need you to file documents every year with the State so that the LLC remains valid and in good standing.

A Corporation usually requires that a meeting of the owners and management happens at least once a year to take care of certain items, such as company elections and approving business. Corporations, like LLCs, also usually need to file documents every year with the State to remain in good standing.

If your entity fails to do these filings and upkeep, it could end up in bad standing with the State. If an entity is not in good standing, a court could look beyond the entity and hold you personally liable in case of a lawsuit or IRS audit.  Crux Consulting Group uses a compliance calendar for your business entity, which makes sure that we keep it compliant with all applicable laws and most importantly, maintain your liability protection.