Business and legal compliance is the process for creating, implementing, and supervising processes to ensure a business complies with applicable laws, regulations, rules, licensing, registration, reporting, investigation, taxation, and decision-making responsibilities related to the operation of the business.
In Arizona, business and legal compliance encompasses a range of regulatory requirements that businesses must adhere to in order to operate lawfully. This includes obtaining the necessary licenses and registrations specific to the type of business and industry, such as professional licenses for certain services, and registering with the Arizona Corporation Commission if the business is a corporation or a limited liability company. Businesses must also comply with state tax laws, which involve registering with the Arizona Department of Revenue and understanding the state's sales tax, income tax, and employment tax obligations. Additionally, businesses must adhere to federal laws and regulations, such as those enforced by the Occupational Safety and Health Administration (OSHA), the Environmental Protection Agency (EPA), and the Internal Revenue Service (IRS). Compliance also involves maintaining proper records, reporting as required by law, and making informed decisions that align with both state and federal legal frameworks. Failure to comply with these regulations can result in penalties, fines, or legal action against the business.