Corporate compliance refers to the things you'll need to do after incorporating to keep your business in good standing with the law. Individual state's laws dictate the necessary steps for maintaining corporate compliance. The laws of the state where you incorporate will dictate what’s necessary for keeping your corporation in compliance, and state laws vary. However, most states share a number of common requirements. Some of the most common ones include regular business meetings and separation of business and personal assets.

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Maintain Regular Business Meetings

Regular business meetings keep the business on track and also demonstrate your business's professionalism. Most states, including Delaware, do not require a set number of meetings per year, though case law indicates that at least one meeting should be held. To be official, the meeting must generally be set in advance and include recorded minutes. The minutes must be saved so that you can demonstrate later that you have followed corporate compliance regulations. Make sure that you include all of the individuals present in the meeting. You may also want to consider including addendums that indicate what action was taken based off the meeting's resolutions.

Separate Business and Personal Assets

Maintaining corporate compliance standards is essential for keeping corporate protections. According to the American Bar Association, one of the most common reasons that you'll lose your corporate protections is if you do not keep your business and personal assets separate.

Keeping these assets separate starts with entirely separate bank accounts. Don't assume it’s enough to maintain books that show funds separately. The funds need to be physically separated in different accounts. You shouldn’t pay your own bills directly out of the business account either. Instead, pay the money into your own personal bank account (as if you were paying your employees) and then you can pay your own bills. While it might seem like an unnecessary middle step, it protects you and keeps you in compliance with your state's business formality laws.

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Get started Incorporate Your Business Answer a few questions. We'll take care of the rest.