SOURCE: CT Corporation

CT Corporation

March 23, 2011 10:00 ET

State, Local Business Compliance Changes Having Major Impact on Small- and Medium-Sized Businesses

CT Corporation Provides Guidance for Navigating the Complex and Ever-Changing Regulatory Landscape for SMBs

NEW YORK, NY--(Marketwire - March 23, 2011) - Major budget shortfalls due to declines in tax revenues are driving cash-strapped state and local governments to increase fees and build in greater complexity around business compliance for small- and medium-sized businesses (SMBs). According to CT Corporation, the leading provider of Corporate Business Compliance solutions, the new environment makes it imperative for SMBs to have a straightforward, intuitive way to manage corporate business compliance. CT Corporation is part of Wolters Kluwer Corporate Legal Services.

When a company misses a key compliance deadline, it can lead to loss of contracts, damage to corporate reputation, financial penalties and the loss of authority to do business in a jurisdiction. On top of those pressures, the Small Business Administration's Office of Advocacy reported that businesses with less than 20 employees spend 36 percent more than large organizations to comply with federal regulations. Managing corporate business compliance has always been arduous and expensive, but now that many states are building in higher costs for penalties and changing long-standing policies, additional layers of complexity have been added to the filing process. Recent examples include:

  • Exponentially Increasing Fees: City officials in Lynwood, Wash. voted for a business license fee increase of almost five times the current rate -- which, for one small business, meant increasing from $15.50 per employee to $85.00 per employee annually.
  • Changing Methods of Communication with State Governments: In order to save money on postage and paper, many state governments are now communicating with businesses electronically, putting the burden on SMBs to implement an auditable, secure IT infrastructure to accommodate the new form of communication. 
  • Revising Long-Standing Codes: Clark County, Nev. officials are proposing wide-ranging amendments to their county's licensing code, which had not been amended since 1961, and increasing fees that had remained unchanged for more than 10 years. 

"Too often small business owners are not aware of pending and new changes to regulatory requirements on a state and local level until it's too late. By that time they could be facing enormous fines or even closure," said Diane K. Brown, executive vice president and general manager, CT Corporation. "SMBs already pay more than their larger counterparts to maintain compliance, but by proactively controlling the process they can keep corporate business compliance from becoming even more expensive."

In order to stay ahead of filing changes, savvy SMBs are implementing technology solutions that streamline the corporate business compliance process. There are too many key dates and pieces of important information to keep track of to rely on memory, handwritten notes or software tools like spreadsheets and email programs. A consolidated, centralized compliance tool can be an SMB's go-to resource to automatically track and continuously update compliance requirements -- sending a list of daily tasks, tracking key dates, updating a centralized calendar, customizing email alerts, linking to jurisdictional information and providing application costs.

To learn more about why business compliance is so important for SMBs and how they can simplify the process, download the free white paper "10 Steps to More Efficient Business Compliance for Small and Medium Sized Businesses." This step-by-step guide can help SMB owners proactively take control of their business compliance and stay ahead of the game. 

About CT Corporation
CT Corporation is the highest quality provider of Corporate Business Compliance solutions. Its offerings enable law firms and corporate legal departments to manage statutory representation for all their entities, complete corporate and secured transactions and maintain compliance as required by state and federal law. For more information, visit www.ctcorporation.com. CT Corporation is part of Wolters Kluwer Corporate Legal Services.

About Wolters Kluwer Corporate Legal Services
Wolters Kluwer Corporate Legal Services is a business of Wolters Kluwer, a market-leading global information services company with annual revenues (2010) of EUR 3.6 billion and approximately 19,000 people across Europe, North America, Asia Pacific and Latin America. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Visit www.wolterskluwer.com.

Contact Information

  • Press Contacts
    Stacy Nobles
    Wolters Kluwer Corporate Legal Services
    212.590.9058
    Email Contact

    Ashleigh Egan
    Articulate Communications Inc.
    212.255.0080, ext. 12
    Email Contact