Company Legal Compliance Checklist: Ensure Your Business is Legal

Company Legal Compliance Checklist

Compliance with Employment Laws

Abide by fair employment practices; no discrimination on the basis of race, sex, religion, or national origin.
Maintain an employee handbook with protective policies against discrimination and sexual harassment.
Obtain appropriate documentation of all employees’ citizenship.
Appropriately classify each employee as either an employee or an independent contractor.
Meet wage standards.
Make sure all workplace posters and notices are posted.
Prepare and maintain records of serious occupational injuries and illnesses in compliance with OSHA.
Verify filing of Department of Labor (DOL) forms.
Hold employment contracts with non-compete and confidentiality clauses and protect at-will employer status.
Ensure lawful termination of employees.

Compliance with Tax Laws

File all federal and state taxes, including employment, sales, privilege, excise, and franchise taxes.
Retain complete and accurate financial records, including records of income and expenses.

Compliance with Advertising Laws

Ensure that the company is engaging in truthful and non-deceptive advertising.
Obtain and/or verify the status of trademarks, trade names, and copyrights.
Ensure that appropriate terms and conditions are posted on website.
Obtain third party consent for use of third party content.
Make sure domain name does not infringe on another organization’s trademarks or service marks.

Compliance with Corporate Laws

Ensure that the company is lawfully registered with clear ownership.
Keep up-to-date copies of Articles of Incorporation and Bylaws at the company’s principal place of business.
Verify that state corporate filings have been made, including annual reports.
Make sure directors have been lawfully appointed and officers accurately elected.
Prepare minutes for all shareholder, board, and committee meetings.
Maintain adequate and correct books and records.
Ensure compliance with securities laws when selling stock and other investments in the business.

Miscellaneous Compliance

Ensure that the company is properly registered in all states the company operates in.
Secure current licenses, both state and federal.
Obtain current permits for all business operations.
Make sure confidential trade secrets are protected.
Ensure no conflicts of interest exist in business relationships; if there are any, make sure they are disclosed.
Have a written agreement that is fair, legal, and in writing for all business and business relationships.
Comply with all contract provisions entered into.
Verify compliance with all representations and warranties.
Make sure agreements contain protection from liability for defective products and services.
Ensure compliance with all environmental obligations.
Have policies and procedures that ensure all data, including client data, remains protected and private.
Ensure that all relations with competitors and others are in compliance with antitrust obligations.
Comply with the Consumer Product Safety Act.
Ensure compliance with all loan covenants.
Review insurance coverage.

Disclaimer: This document is educational information based on general legal principles. Specific facts can and often do drastically change legal results. You should not rely on this information except as a trigger to contact your attorney and obtain advice specific to your circumstances.

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