Compliance Definition

Compliance refers to adhering to laws, regulations, and industry standards to ensure that a company's operations and practices are legal, ethical, and in line with required guidelines.

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The business definition of compliance means that your business conforms to all the applicable state requirements and has met all appropriate deadlines for your business to remain operational and in good standing. Compliance can involve state and federal laws or internal procedures and policies set by your company. 

Compliance Examples

If you’re a business owner, you’ve already seen several compliance examples. Some examples of compliance are:

  • Filing Articles of Organization or Articles of Incorporation for your limited liability company (LLC) or corporation to become official
  • Filing an annual report for your LLC or corporation
  • Following employment laws and regulations
  • Keeping customer data confidential
  • Maintaining appropriate licensing for your type of business
  • Paying taxes

If you’ve done any or all of the above then you have a firm grasp on business compliance. It generally involves adherence to a state’s laws and regulations for business. We can help with many of your business compliance tasks with our Worry-Free Compliance Service. 

Compliance Considerations

Every business needs to stay in compliance with state and local guidelines. If you fall out of compliance, the disadvantages are extremely costly. 

If your business isn’t in compliance with local and federal guidelines, you may have to pay hefty fines or fees associated with noncompliance. These can be in the form of late fees and delays for failure to file documents like annual reports, failing to amend documents, or failing to disclose mandatory information requested by the state. For example, most states assess a late-fee penalty for failing to timely file an annual report. That late fee is often hundreds of dollars and can’t be waived. Don’t get caught out of compliance, the disadvantages will be harmful to your business. 

The Benefits of Compliance

You already know that noncompliance comes with a host of disadvantages for your business, but what about the benefits of compliance? If you’re looking to expand your business into another state, transfer ownership, or obtain certain licenses or permits, remaining in compliance is a huge benefit to your business. The reason being that certain circumstances may call for a Certificate of Good Standing. A Certificate of Good Standing is a document that is issued by the state and serves as evidence that your business is authorized to conduct business within the state. It’s also evidence that the company complies with state law and has met all statutory requirements. Your business’s reputation can be used as a tool when it comes to business compliance, meaning that your business will benefit in the long run.

Worry-Free Compliance

If you’re concerned about your business being in compliance with state and local guidelines, then we can assist you. Our Worry-Free Compliance Service will help you with state compliance and annual filings so you can keep your business in compliance. Benefits of our Worry-Free Compliance Service include:

  • Saving time and money, and avoiding making costly errors as we assist you with meeting deadlines and ongoing state filings. 
  • Having the benefit of two yearly amendments to keep your business documents updated.
  • Having the support of our business experts so that you remain in good standing with your state. 

We can help you reduce your risk of exposure for failure to remain compliant with state requirements. Our services can give you an advantage over other small businesses. 


Compliance is important for the success of your business. Make sure that your business remains in compliance with state and local regulations. This helps your business avoid costly fines and remain operational. 

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

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Written by Team ZenBusiness

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