What is a compliance checklist for companies? We talked with a window cleaning company next door to us and found out that many new business owners in the window cleaning industry had this question and many like it, especially when just starting out. A company’s legal compliance checklist outlines rules and regulations that a business enterprise should abide by. You should note that for your business to be considered legal, that it should adhere to the set rules and regulations strictly. This piece will highlight components of a legal compliance checklist for companies.

Employment Laws

For a company to be considered legal, it should operate in compliance with the set employment laws such as:

• Follow fair employee recruitment practices without discriminating while hiring on bases of sex, race, the nation of origin, or religion
• Maintain a handbook for your employee abiding by protective policies against sexual harassment and discrimination
• Maintain a record of employee’s citizenship
• Meet the average wage standards
• Classify the company employee appropriately as either a normal employee or a contractor who is independent
• Ensure notices and posters are posted at the workplace
• Verify DLO (Department of Labor) forms are filed
• Terminate term of employment of employees’ lawfully
• Keep contracts of employment with confidentially and non-compete clauses as well as protect employer status at-will

Tax Laws

For a business enterprise to be operating legally, it should conform to tax laws as well. The tax laws include:

• Keep accurate and full financial records, with complete records of expenses and income
• Ensure state and federal taxes filing is done accordingly, including sales, employment, franchise, excise, and privilege taxes

Advertising Laws

In addition, a business enterprise should comply also with advertising laws for it to be considered legal. Advertising laws comprise of the following:

• A company should conduct non-deceptive and sincere advertising
• Obtain and/or make a verification of copyright, trademarks, and trade names status
• Make sure the terms and conditions of your company are posted on the website
• Should obtain consent from third parties before using third parties content
• Ensure domain names for websites do not break other companies’ trademarks and/or service marks

Corporate Laws

Corporate laws that a business enterprise should abide to include:

• Ensure the company has clear ownership and registered lawfully
• Maintain updated copies of Bylaws and Incorporation Articles
• Verify filings of corporate state are made with the inclusion of annual reports
• Prepare all board, shareholders, and committee meetings minutes
• Maintain error-free and enough records and books
• Always comply with security laws when selling stock or other investments in your business

Miscellaneous Compliance

In addition, there are other miscellaneous compliance that a business should adhere to and they include the following:

• Make sure the business is registered in all states it operates in properly
• Secure current state and federal licenses
• Outline procedures and policies for the protection and privacy of all data, including the client data
• Make sure your relationship with other third parties including competitors abides with antitrust agreements
• Ensure compliance with the Consumer Product Safety Act
• Comply with the outlined loan covenants
• Ensure to conduct insurance cover review
• Get updated business operations permits
• Ensure to protect confidential trade secrets
• Make sure there are zero business relationships of interest, if they exist, disclose them
• Maintain a fair, legal and free written agreement for all business relationships
• Abide to contract provisions agreed upon
• Make a verification of compliance with all outlined warranties as well as representations
• Ensure agreements made caters for defective products and/or services
• Make sure the company complies with environmental obligations

So, What Is a Compliance Checklist for Companies?

According to general legal principles, the above is an outline of a compliance checklist for companies that every business owner should have. You should note that some of the outlined facts change quite often and this can interfere with legal results. Therefore, it is advisable to contact your business legal adviser for information and specific advice to your situation.