What it is

Filing with the county when the address is inside city limits (or vice-versa). That leads to unlicensed operations and double fees later.

Fix now

1. Use the city/county boundary or GIS tool to confirm who governs the address.
2. Apply for the correct license, backdate if needed, and note any penalties.
3. Close the wrong account if one was opened.

Prevent next time

• Always link a boundary/GIS screenshot to the license profile.
• Add “Governing: City/County” to our address template.

What it is

Hiring in a state or doing onsite work without registering the OpCo as a foreign entity.

Fix now

1. File foreign entity + appoint registered agent.
2. Open state payroll (withholding + unemployment) if employees exist.
3. Check for city business license triggered by the employee’s location.

Prevent next time

• Pre-hire checklist includes foreign registration and payroll account numbers.

What it is

Public-facing name differs from legal name without a county/city DBA filing.

Fix now

1. Search county trade names → file DBA → attach receipt.

Prevent next time

• Include “DBA needed?” in branding/rebrand checklist.

Fix now

1. Update RA and principal address within 30 days of any move; store confirmations.

Prevent next time

• Moves checklist includes RA + city/county + state updates.

What it is

Most cities require a business tax certificate for in-city activity, even admin-only.

Fix now

1. Apply; pay back fees if assessed.
2. Calendar renewals (60d and 14d reminders).

Prevent next time

• City check added to “new address / remote hire” workflow.

Fix now

1. File HOP/affidavit; add landlord/HOA consent if needed.

Prevent next time

• Home-office rules reviewed before listing an employee’s address.

Fix now

1. Register alarm permit; file sign permit if any exterior change.

What it is

Crossing state thresholds (~$100k sales or 200 transactions in many states) without registering & collecting.

Fix now

1. Register; set collection start date; file catch-up returns if required.

Prevent next time

• Monthly per-state sales report (rolling 12 mo) with alerts at 80% of threshold.

Fix now

1. Separate marketplace vs direct sales; register for direct if thresholds hit.

Prevent next time

• Channel tracker shows who collects; reconcile monthly.

Fix now

1. Create a “taxability notes by state” sheet; adjust invoicing rules.

Prevent next time

• When adding a new product/service, record its state taxability and citation.

Fix now

1. Register first; calendar filing cadence; file $0 returns when required.

Fix now

1. Open state withholding + UI; update payroll provider with account IDs.

Prevent next time

• Pre-hire checklist includes payroll account confirmations.

Fix now

1. Submit required affidavits at license issuance/renewal where applicable.

Prevent next time

• Check the employee’s city for home-based licensing before onboarding.

Fix now

1. Review control tests; convert to employee if needed; register payroll.

Fix now

1. Bring accounts current; note penalties; add to central calendar (owner + date).

Prevent next time

• Reconcile license declarations to books and payroll each year.

What it is

Most entities formed 2024+ must file Beneficial Ownership; updates required after certain changes.

Prevent next time

• CPA coordinates entity filings for nexus states even if marketplaces collect sales tax.

Fix now

1. Move approvals/receipts into a single “Compliance” Drive folder.

Prevent next time

• Use permitted address types for each filing; align websites/invoices.

Fix now

1. Update city, state, RA, payroll, and licenses within 30 days; keep confirmations.

Fix now

1. File final returns; close tax accounts; withdraw foreign entity as appropriate.