Filing Taxes Does Not Mean Your Business is Compliant

Written By Rowena Ulu

Many business owners believe that if they file their taxes, their business must be in good standing.

That assumption causes more problems than people realize.

Tax compliance and business compliance are handled by different authorities. Taxes are filed with the IRS and state tax agencies. Business compliance filings are handled by the Secretary of State and local agencies.

A business can be fully current on taxes and still be:

  • Out of good standing

  • Past due on required filings

  • Missing state or local registrations

This is not a rare situation. It’s common, especially for first-time business owners.

Understanding this separation early can prevent penalties, delays, and unnecessary stress later.

Rowena Ulu
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