Small Business Compliance Checklist

1. Registered Agent and Annual Report

Every state requires an LLC or corporation to continuously maintain a registered agent with a physical in-state address, and most require filing a periodic report or franchise tax return to stay in good standing, with fees ranging from $0 in some states to $500 in Massachusetts. A lapse here is one of the most common ways a small business falls out of good standing, often without a dramatic warning sign first.

2. EIN and Tax Account Registrations

Most businesses need an EIN from the IRS, free of charge, and many also need to register separately with their state's revenue agency for income tax withholding, if they have employees, or other state tax accounts specific to their business. See our guide on how to obtain an EIN for a business for who actually needs one.

3. Business Licenses and Permits

Check federal, state and local licensing separately, since each level covers different activities: federal licensing applies only to specific regulated industries, state licensing covers many professions and state-level permits, and local licensing, a general business license, zoning permit, or health permit, is the layer most small businesses deal with most directly.

4. Sales Tax Registration

If you sell taxable goods or services, register for a sales tax permit in every state where you have nexus, either a physical presence or sales above that state's economic nexus threshold, before you start collecting tax there. See our guide on how to register for sales tax for the state-by-state process.

5. Employer Obligations, if You Have Staff

Hiring even one employee adds its own checklist: payroll tax registration, Form I-9 for every new hire, new hire reporting to your state, workers' compensation insurance where your state requires it, and required workplace posters. None of these apply to a business with no employees, but all of them apply the moment you have your first one.

6. Business Insurance

While no general law requires business insurance, specific industries carry real requirements: most states require workers' compensation once you have employees, motor carriers face federal minimum liability coverage, and licensed contractors, childcare providers and liquor-serving businesses commonly face insurance minimums tied to their license. See our guide on business insurance requirements by industry for the specifics.

7. Organized Recordkeeping

Keep your formation documents, EIN confirmation, licenses, meeting minutes or resolutions, and tax returns organized and accessible. The IRS recommends keeping employment tax records for at least four years after the tax becomes due or is paid, and keeping property records until the statute of limitations expires for the year you dispose of that property.

8. Beneficial Ownership Reporting Status

Under FinCEN's current rule, companies created in the United States are exempt from beneficial ownership information reporting; this applies to most small businesses using this checklist. Because the rule has changed more than once in a short period, confirm your current status directly at fincen.gov/boi rather than assuming last year's guidance still applies.

Putting It Together

The reason this checklist is worth reviewing as a whole, rather than one item at a time as it comes up, is that the items run on different schedules and are tracked by different agencies; staying current on one doesn't tell you anything about the others. A simple approach is reviewing all eight whenever you file your annual report, since that's already a recurring, dated touchpoint most businesses have. LLC Register's $99-a-year registered agent service includes annual report filing, covering item one on this list so you can focus your attention on the rest.

This Is a Screening List, Not a Universal To-Do List

Several items on this checklist apply only in specific circumstances, such as having employees or selling taxable goods. Use it to screen your specific business against each category rather than assuming every item requires action.

New States and New Activities Add to the List, Not Replace It

Expanding into a new state, adding a product line, or hiring your first employee typically adds new items to check, such as a foreign qualification, a new sales tax registration, or employer obligations, on top of what you were already tracking, rather than replacing your existing checklist.

A Missed Item Rarely Announces Itself Immediately

A lapsed registered agent, an expired local license, or a missed sales tax registration often goes unnoticed for a while before it surfaces, commonly when a bank, a lender, or a state notice brings it to your attention. Reviewing the checklist proactively, rather than waiting for an external prompt, catches gaps earlier.

This Is General Information, Not Your Specific Requirements

The fees, forms and deadlines behind each item on this checklist are set by your specific state, local government, and industry regulators, and they change over time. Talk to a business attorney or tax professional about your specific situation, particularly if your business operates in more than one state or in a regulated industry.