Standing on business is a slang term that has become popular online to mean taking care of your responsibilities and handling your affairs. In business, standing on business refers to maintaining compliance and good standing to operate successfully. Let’s explore what it means to stand on business and why good standing matters.

What Does “Standing on Business” Mean?

The phrase “standing on business” has its roots in African American Vernacular English (AAVE) and urban slang. It means to take care of your obligations, be about your grind, and handle your own affairs.

Taking Care of Your Responsibilities

To stand on business first and foremost means to take care of your responsibilities. It refers to following through on your duties, commitments, and business needs. When you stand on business, you get done what needs to be done in both your professional and personal life.

For example, an entrepreneur who is standing on business takes care of all their business obligations – they fulfill orders, pay employees, file taxes properly, etc. A parent who is standing on business provides for their family and handles parenting duties. Standing on business is about being reliable and accountable.

Being About Your Grind

In addition to taking care of responsibilities, standing on business refers to being about your grind. This means dedicating yourself to your work and hustle. When you stand on business, you put in the time, effort, and grit needed to accomplish your goals or build your empire, so to speak.

For entrepreneurs, standing on their business means devotedly growing their company. For artists, it means perfecting their craft through practice. For students, it means studying diligently. Being about your grind is essential to standing on business.

Handling Your Own Affairs

Standing on business also means handling your own affairs. This refers to taking care of your own matters independently without relying on others. When you stand on your business, you don’t depend on handouts or assistance unless absolutely necessary.

Examples include financially providing for yourself, taking care of your health, running your household, and dealing with your problems or drama yourself. Standing on business is about personal responsibility and self-reliance.

Why Is Good Standing Important for Businesses?

In the business world, the idea of “standing on business” refers specifically to maintaining your company’s good standing status. Good standing is a legal designation that indicates a business is operating in compliance with state laws and regulations. There are several key reasons why good standing is crucial for any company:

Preserving Limited Liability Protections

For companies like LLCs and corporations, good standing helps preserve limited liability protections for the owners. These protections shield your personal assets if your business is sued. If you fail to meet compliance requirements like filing annual reports, you risk losing your liability safeguards. Maintaining good standing keeps those protections intact.

Ability to Operate and Expand Across State Lines

Good standing gives businesses the ability to legally operate and conduct activities like open bank accounts, enter contracts, etc. If your business loses its good standing, your legal ability to transact is jeopardized. This can prevent you from expanding into new states if you are no longer compliant in your home state.

Access to Financing and Loans

Lenders and financial institutions require up-to-date certificates of good standing before approving financing. If you’ve lost your good standing, you may not be able to secure business loans or other funding needed to operate and grow. Maintaining compliance helps ensure access to capital.

Avoiding Penalties and Suspension

If you fail to comply with legal requirements, your business can face serious consequences like tax penalties, suspension of your entity status, or even dissolution. This can be both costly and damaging. Keeping up with state regulations helps avoid these outcomes so you can continue operating smoothly.

How to Maintain Good Standing for Your Business

Maintaining good standing requires ongoing compliance with all state requirements that apply to your business entity. Here are some tips to preserve your compliant status:

Regularly Check Your Business Status

Periodically checking your entity’s status in the state records is essential – at least once per month is recommended. This allows you to quickly catch any issues with your good standing and address them before serious consequences occur. Many states have online systems that enable you to view your status for free.

Use Compliance Management Software

Compliance management software can automate monitoring of your good standing status across states. Features like deadline reminders, document filing, and status alerts make staying up-to-date on requirements effortless. This streamlines compliance maintenance significantly.

Keep Up with State Reporting

One reason businesses fall out of good standing is failing to file periodic reports by their deadlines. State requirements vary but can include annual reports, renewal statements, and other filings. Stay on top of your specific state deadlines and file accurately and on time.

Maintain a Valid Registered Agent

Your registered agent is essential for maintaining your legal address for service of process. If your registered agent status lapses, you risk falling out of good standing. Promptly update your agent if their address or status changes to prevent compliance issues.

Pay Taxes and Fees On Time

Liability for taxes like income and franchise taxes varies by state but can impact your good standing if unpaid. Track payment due dates closely and pay your tax obligations punctually. The same applies to state regulatory fees – pay on time to avoid problems.

Consequences of Losing Good Standing

Unfortunately, many businesses learn the hard way how crucial good standing is only after losing their compliant status. Falling out of good standing can lead to several disruptive consequences:

Personal Liability for Owners

Owners can lose limited liability protections if the business’s status is forfeited, resulting in personal financial exposure. Lawsuits, debts, and other liabilities incurred by the company could then extend to the owners’ personal assets.

Lawsuits for Non-Compliance

Secretaries of state and attorneys general can initiate legal action and impose civil/criminal penalties against non-compliant entities and their owners. Lawsuits compound the problems created by losing good standing.

Delayed Ability to Operate

Losing good standing halts your ability to legally conduct business while you address overdue filings and requirements. You cannot sign contracts, obtain financing, or complete other transactions until status is restored. This operational disruption can be very problematic.

Suspension of Corporate Powers

A suspended business cannot legally exercise many of the powers granted to the entity, like liability protections, continuity of existence, etc. Essentially the corporation or LLC loses authority to act as a recognized business.

Dissolution or Revocation

If a business fails to fix lapsed requirements after suspension, the state can revoke the entity’s status entirely through dissolution or revocation. This can ultimately force the company to shut down.

Tips for Standing on Your Business

As a business leader, how can you ensure you stand on your business’ affairs and maintain good standing? Follow these best practices:

Know Your Compliance Responsibilities

Be proactive in understanding exactly what state-specific filings, taxes, and fees apply to your particular entity type. Keep a calendar of important deadlines. Stay educated on new requirements as regulations change.

Get Organized and Automate

Reduce the chance of human error causing a compliance oversight using organization tools and automation. Calendars, checklists, filing platforms, and software can all help systematize monitoring of good standing.

Designate a Point Person

Appoint a staff member to be responsible for actively handling and overseeing compliance duties like tracking deadlines and making filings. Don’t let obligations slip through the cracks.

Seek Professional Assistance

If managing compliance in-house is challenging, don’t be afraid to enlist help. Accountants, lawyers, and registered agents can provide compliance support and advice when needed.

Address Issues Promptly

If you receive a notice that your business is no longer in good standing, immediately address deficiencies. Resolving problems quickly limits impacts and makes reinstatement straightforward.

Standing on your business is all about taking care of your company’s affairs through diligent compliance management. While maintaining good standing requires some work, it pays dividends by enabling your company to operate smoothly and limit legal risks. Make compliance a priority, stay organized, and promptly resolve any lapses if they occur. Doing so will help ensure your business remains in good standing for the long haul.

Conclusion

The slang phrase “standing on business” emphasizes responsibility, commitment, and perseverance. When applied to the business world, standing on your business means maintaining its good standing status through diligent compliance. For companies, good standing provides essential benefits like liability protections, financing access, and the legal ability to operate. Loss of good standing can be very damaging.

Staying compliant does require some diligence in monitoring state requirements and filings. However, by using organizational tools, software, and professional help, onerous compliance tasks can be streamlined. Make checking your business’ status and meeting deadlines a regular routine. Address any lapses promptly if they occur. Following these best practices will ensure your company continues standing on its business with minimal disruption.