The checklist for startup compliance includes filing your business formation with the state, obtaining an EIN, appointing a registered agent, drafting an operating agreement, filing your BOI report, and obtaining any necessary business licenses and tax elections. Founders typically overlook at least two of these within the first three months of starting the business, which creates larger issues later on.
The first few months of starting a business are hectic, and the compliance process is often the least prioritized. Forming your business is just the first of many steps to filing, registering, and electing how your business will operate, how it will be taxed, and how it will remain compliant and in good standing. This startup compliance checklist focuses on what matters most, in the most logical order.
What Does a Startup Compliance Checklist Actually Cover?
The majority of compliance checklists available online are vague and simply state to “register your business” or “obtain an EIN” without any further instructions or guidance on what to do next if these actions are taken out of order.
Here is what a legitimate startup compliance checklist will include for the formation of a U.S. LLC or Corporation:
- State filing for formation
- Appointment of a registered agent
- Obtaining an EIN
- BOI Report
- Operating Agreement or Bylaws
- Business Bank Account
- Federal and State Tax Elections (if required)
- Business Licenses and Permits
- Compliance Requirements for Annual Reports
Founders typically overlook the importance of the above order.
Step 1: File Your Formation Documents With the State
To form an LLC, you submit Articles of Organization. For a corporation, you submit Articles of Incorporation. The Secretary of State or an equivalent will oversee the filings.
There is a state filing fee that can vary fairly drastically. An LLC in Delaware will cost $90, and in Wyoming, $100. In California, an LLC costs $70, plus an $800 annual franchise tax starting in year one. New Mexico has a $50 filing fee and no annual report requirement, which makes it appealing for holding structures.
State filings can take drastically different amounts of time. Most states will take 3 to 10 standard business days. Delaware offers expedited filings in one business day for an additional $50.
If you are a non-resident founder, you may use your primary home address, but a formation state-based registered agent is required.
Step 2: Appoint a Registered Agent
Each LLC and corporation must designate a registered agent with an address in the state of formation. Registered agents are required to receive service of process, tax notices, and correspondence.
A P.O. Box cannot be listed as an address. There must be a current street address.
If you are not based in your formation state or in the U.S., you will need a registered agent service, which costs $50 to $300 a year.
Skipping this or providing a fake address is a quick way to be administratively dissolved without your knowledge.
Step 3: Get Your EIN From the IRS
Employer Identification Numbers (EINs) are necessary to open a business bank account, pay business taxes, have employees, and even apply for business licenses.
IRS.gov provides a portal to obtain an EIN the same day for U.S. business owners. The SS-4 form is provided through the portal.
Non-resident owners must fax or mail Form SS-4 and contact the IRS. Fax processing times are 4 to 6 weeks. The international phone option is available, but the wait times are unpredictable.
One of the more common mistakes is obtaining an EIN prior to formalizing the LLC. State filing systems may not show your LLC entity after filing, and may cause problems for you in verifying your LLC during your EIN application.
Step 4: File Your BOI Report With FinCEN
Pursuant to the Corporate Transparency Act, most LLCs and corporations are mandated to file a Beneficial Ownership Information report to the Financial Crimes Enforcement Network.
For companies established prior to January 1, 2024, originally, the deadline was set for January 1, 2025. There were court-ordered extensions and injunctions in 2024 that added to the confusion. By early 2025, ongoing litigation led FinCEN to set a March 21, 2025, deadline for most companies.
Companies formed after December 31, 2025, will have 30 days from their formation date to file in the new system.
The report will ask for information for beneficial owners. This includes anyone with 25% or more ownership or control over the company. A government-issued ID will be required.
The penalties for noncompliance are severe. You could face criminal charges and be fined $591 for each day the report is not filed. There are also no catch-up windows, like with some other state filings.
Step 5: Draft Your Operating Agreement or Bylaws
Typically, operating agreements are not required. However, not having one creates problems, and people will ask for it, including potential litigants and banks. Courts will request it as well.
Good operating agreements will outline ownership, the percentage of profits and losses attributed to each member, and how decisions are made, among other things.
LLCs with only one member will also want to make the agreement, as it will separate the business from the member for liability purposes.
Bylaws are required for corporations and include the same type of information as operating agreements.
Step 6: Handle Your Tax Elections
If you have a single-member LLC, the IRS will disregard the entity for tax purposes. If your LLC has more than one member, the IRS will treat it as a partnership. If either of those is not correct, you will need to file the election.
To elect S-Corp status, you need to submit Form 2553 to the IRS. This form must be submitted 75 days before the start of the tax year you want the election to take effect. If you miss that deadline, you cannot elect S-Corp status until the following tax year.
C-Corp is the default tax status of all corporations. If you want your corporation to be taxed as an S-Corp, you submit Form 2553, and you are bound to the same deadline.
If you are not a resident of the U.S., you cannot elect S-Corp status. S-Corps are available only to corporations whose shareholders are all citizens or resident aliens of the U.S.
If you are issuing your employees stock options that will vest, you also need to consider the 83(b) election. This election is submitted to the IRS within 30 days of your employees receiving the stock options.
Common Compliance Mistakes Founders Make in the First Year
Many founders want to form their company in Delaware or Wyoming but keep bank accounts and run operations in California. In most circumstances, you will need to register as a foreign LLC in California, and you will need to pay fees in both states.
Founders usually want to avoid creating an operating agreement until they have an actual business. Banks will ask for your operating agreement. You should have a clean operating agreement as early as possible.
Many founders learn about the BOI filing requirement after their company has already been formed, but it is a compliance requirement with a 30-day filing deadline after your business is formed.
If you allow your registered agent to change or stop paying the annual fee, you will miss important notices from the state.
Many founders underestimate how long it takes to apply for an EIN, especially if they are not citizens of the U.S. This will greatly delay your ability to open a bank account for your business.
State-Specific Compliance Notes Worth Knowing
California imposes several annual compliance fees, such as the $800 franchise tax. For gross receipts exceeding $250,000, an additional LLC tax applies.
Delaware’s annual franchise tax is due March 1. For a corporation, the franchise tax is calculated via two methods. Using the authorized shares method can produce very large franchise tax calculations, so be careful.
New York LLCs have a special compliance cost due to the publication requirement. New LLCs must publish a formation notice for 6 weeks in two local newspapers. This costs anywhere from $500 to $2,000, depending on the county.
Wyoming and New Mexico are popular for LLCs due to their low annual fees and the absence of public member disclosure.
What Does First-Year Compliance Actually Cost?
Compliance costs depend on many factors, but here are some common compliance cost estimates for LLCs in 2026:
| Item | Typical Cost |
| State formation filing | $50 to $300 |
| Registered agent (annual) | $50 to $300 |
| EIN application | Free (DIY) |
| BOI report | Free (file directly at boiefiling.fincen.gov) |
| Operating agreement (template or attorney) | $0 to $500 |
| State-specific fees (CA franchise tax, NY publication, etc.) | Varies widely |
Estimated compliance costs in low-fee states are $100 to $800, excluding legal fees. The costs in California and New York are substantial. Consider these states before defaulting to your home state.
Keeping Up With Ongoing Compliance
Formation is a one-time thing. Compliance is a whole other thing.
Most states require you to file annual or biennial reports to maintain the good standing of your LLC or corporation. For LLCs in Delaware, the annual report is due June 1, and there is a $300 franchise tax. Wyoming requires it on the first day of your formation anniversary month.
Usually, there is no immediate consequence for failing to file, but your company will be administratively dissolved after the grace period. It is usually more expensive to have your company reinstated after it is dissolved than to file the reports regularly.
Set a calendar reminder for all the deadlines related to your formation date: BOI updates if there is a change of ownership, annual reports, franchise tax payments, and other state-specific license renewals.
