Business Compliance: A Guide For 2023

Autor: Francisco Hernández

In a business environment, before betting on the next stage, the first effort is a financial calculation, but?what can cause a projection not even to reach the pessimistic scenario?

Let’s face it; the?possibilities are endless, and our ?new normal? is volatile and unpredictable. Uncertainty is inevitable between the threat of pandemics, new economies, and international conflicts; today, more than ever, we have to reinforce everything within?our circle of influence.

Whatever your business sector is, you must?follow a series of official standards, rules, and laws?published by competent authorities. In search of stability and security, it is better to ensure you are up to date on?legal and fiscal issues, or sooner or later, a sanction will potentially paralyze your organization. These mandatory guidelines are outlined in?Business Compliance (BC)?package.

What is business compliance (BC)?

It is a general term that refers to heeding laws and regulations which govern a sector established by federal, state, or local organizations.

Complying with these general terms guarantees security against fees and fines issued by the competent authorities, following industry standards, and staying competitive.

Business compliance provides transparency and certainty that the organization operates with integrity for workers and stakeholders.

What happens if I do not comply with BC?

Once a business registers within the territory where it will be hiring talent for its organization, it will be subject to initial and ongoing requirements. Each requirement is different between states, countries, or regions. Some of the consequences of not complying are:

• Surcharges and fines if you do not renew permits and licenses.
• The owners are responsible for the debts of the business.
• The loss of a good reputation.

If you cannot prove that you met all the requirements, whether you are being sued or sold, the court can rule that the business was operating as a sole proprietorship or a general partnership.

What are the generalities of a BC?

Some of the standard compliance submissions include:

• Employer Identification Number, or EIN
• A registered agent
• Annual reports
• Franchise tax
• Initial reports/statements
• Business licenses/permits

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Can I delegate the BC responsibility?

?Yes, you can delegate the responsibility to a third party in charge of having a local registry and assures you under contract the submission of BC with your workforce and the competent authorities.

These third parties are known as?Employer of Record companies?and are responsible for monitoring and maintaining all changes and needs of the industry where you are. Companies that operate outside the borders of their territory of origin no longer need to create new legal figures in each country where they decide to open new markets.?

Some industries are more complex than others, with regular updates depending on the experience of each country. Delegating this responsibility helps international organizations prevent setbacks and continue operations with the most excellent agility.