Steps to Corporate Compliance Bethesda

by | May 3, 2013 | Lawyers and Law Firms

Corporate Compliance Bethesda – is an important undertaking for a company of any size. In modern society, there are a multitude of regulations on any type of business activity. Although a smaller company may think they can’t afford to spend on compliance, not spending on Corporate Compliance Bethesda could actually be putting the entire company at risk. This is because many fines for failing to comply with government regulations are in fixed amounts that could prove unaffordable for a small company. Further, any subsequent legal proceedings or appeals could generate legal fees equaling several years of revenue.

For this reason, it is important to get a head start on Corporate Compliance Bethesda even from the filing of the company’s original formation documents. Often when beginning a business, an entrepreneur will only consider one or two things. They may file as a sole proprietorship for the tax advantages, as a corporation to avoid personal liability, may have entered into a partnership agreement to work with another person, or may have thought a limited liability company was best. What they may not realize is that each form of business may require the payment of different fees, filing of different reports, and possibly publishing notices in local newspapers. The failure to comply with these requirements could result in significant fines or the dissolution of the business.

Certain business types also have increased regulations to deal with. Most notably, this includes businesses that hold a fiduciary trust for clients by holding their money, investments, or real property for a certain period of time. Regulations are in place to assure these assets aren’t wrongfully converted and that fiduciaries act only in the best interest of the client, not to push personal dealings instead. Often, these regulations arise as a result of a headline making scandal and a rush by politicians to calm the public fury by passing strict laws enacting strict penalties for any related conduct in the future. This creates a patchwork of regulations that can be very difficult to follow and stay current on without an experienced compliance professional. Working without one risks not being aware of every regulation and potentially large penalties for an inadvertent, but avoidable failure to comply.

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