What are some of the key benefits of corporate compliance documentation?
Compliance documents generate proof of your business activities. Where corporate misconduct comes as a result of the actions of a few employees or third parties, compliance documents can be used to demonstrate that your business in fact took reasonable steps and made the best efforts to adhere to the regulations. A strong corporate compliance documenting system protects businesses from having to pay large monetary fines for non-compliance.
What we do:
We assist business organizations on a diverse range of compliance regimes. We help them identify and understand laws and regulations applicable to their industry and provide guidance on how to manage and mitigate non-compliance risks by developing policies, manuals and handbooks for compliance. We also support our clients with the necessary documentation to apply for required business licenses/permits and seek exemptions from regulatory rules.
Arizona Corporate Compliance Starter Guide
Why corporate compliance is important for your business?
Corporate compliance is a vital part of business operations in any industry. Law and regulations directly affect how businesses conduct themselves. Federal and state regulatory agencies are stepping up corporate compliance frameworks and regulatory oversight demanding more transparency and accountability in business practices. Poor compliance and non-compliance can result in hefty fines and can sometimes lead to criminal charges and loss of business reputation. Creating a comprehensive and successful compliance program can prevent your business from running unexpected costs in the long run. Most importantly, it protects your business from fines and lawsuits.
In this article, we are highlighting some of the key corporate compliance requirements and laws in Arizona and we will also discuss why corporate compliance documentation is important for Arizona businesses. Let’s dive right in.
Starting with the most fundamental question of all,
What is corporate compliance in business?
Quite simply, corporate compliance is your business organization’s adherence to laws and regulations specific to the business sector or industry.
What are filings required for Arizona corporations at the time of incorporation?
- Articles of Incorporation
- Statutory agent acceptance]
- Member or manager structure attachment
- Cover sheet
- Publication requirement (notice of incorporation)
- If your LLC is located either in Pima County or Maricopa County, you don’t need to meet the Arizona LLC publication requirement.
What are corporate record-keeping requirements?
Arizona corporations must create and keep the following documents in their corporate records.
- Articles of incorporation and amendments
- Meeting minutes
- Written communications to shareholders within the past 3 years
- The most recent annual reports
- Agreements and correspondence with shareholders
- List of names and addresses of current directors and officers
What are tax filing requirements for Arizona corporations?
If you’re a corporation registered with the Arizona Corporation Commission, here are some of the key tax reporting requirements you need to comply with.
Pursuant to Arizona Revised Statutes section 10-1622, all corporations whether domestic or international, excluding Arizona Limited Liability Companies are required to file annual reports during the month of the corporation’s anniversary date. This includes non-profit corporations as well.
Having to pay taxes is not the most enjoyable part of running a business. All LLCs in Arizona must pay federal income taxes. Before starting business, your corporation should apply for: Federal tax identification number (EIN) and State tax identification number. These numbers are assigned by the IRS to identify your business for tax and filing purposes.
But Arizona LLCs qualify for ’pass-through taxation’ and can opt not to file their own tax return. LLC members can report the corporation’s income and profits on Schedule C of their personal income tax returns (Form 1040).
Filing can be done electronically by logging into ecorp.azcc.gov through Arizona Corporation Commission’s eFile system. Due dates are different for each corporation. To request an extension for filing the annual report, an annual report extension request must be submitted along with the fee. Failure to submit annual report before the assigned due date results in fines in the amount of $9 per month. Corporation receives a delinquency notice in the event the annual report is not filed. If a corporation fails to submit the annual report within 60 day of receiving the delinquency notice, it will be sent a second notice called Notice of Pending Administrative Dissolution/Revocation. Failure to submit report within 60 days of the second notice will result in administrative dissolution of the corporation. However, an administratively dissolved corporation can file for reinstatement at a cost of $100 within six years from the dissolution.
Do you have the right corporate compliance documentation program for your business?
Streamline your corporation compliance documentation with us.
Document Prep Arizona has a proven track record in creating comprehensive corporate compliance solutions for emerging and established businesses across different industries. Our team members will take care of all reporting requirements to keep your business in good standing. Call us at 888.362.0036 to learn more about how we can help keep your company compliant.