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What is business compliance?
Business compliance is a catch-all term for the process of making sure your company and employees follow all laws, regulations, standards, and ethical practices that apply to your organization and industry. It is where a business accords to established guidelines or specifications to help a company prevent and detect violations of rules, which ultimately protects them from fines and lawsuits.
For example, compliance for a manufacturer or supplier might be certification or confirmation that it meets accepted practices, rules, and regulations, or specified practices. Laws will vary depending on your industry, where your business is based, and how you've chosen to structure your company.
External Requirements:
Your industry decides these, as well as federal, state, and local laws.
You can be subject to fees and penalties that are chosen by the state rules, industry standards, and federal laws.
Internal Requirements:
These provide transparency into how your business operates with integrity
They are also dictated by financial and other rules that come with filing a corporation or LLC.
Penalties (such as reprimands, probation, or dismissal) are determined by company executives, board members, and managers.
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