Is Your Business SEC Compliant?

Why SEC Compliance is Important? Businesses invariably find themselves under the watchful eye of the Securities and Exchange Commission (SEC) when their business offers certain types of employee benefits such as a 401K, stock options, a credit union and group health coverage. Business owners need to know SEC compliance regulations and federal laws that relate to their business.

Business SEC - Is Your Business SEC Compliant?


One of the driving factors when people choose a job are payment and benefits. Since benefits are part of the compensation plan it is important to make sure that the mix of benefits that are offered to employees are attractive. This is especially important in companies where you want to avoid a high turnover rate. Having employees stay with a company for a long time means they should be happy with their pay and benefits. However, there are challenges that sometimes arise.

SEC compliance protects employers and employees. SEC compliance is important in small and large businesses, although there may be difference in the compliance regulations due to the number of employees as in the case of healthcare groups. In large companies with a large number of employees, the SEC compliance regulations pertain to reporting ACA’s Form W-2 and the Family and Medical Leave Act.

(FMLA) Specific Requirements

If a business is listed on the stock exchange, that will also necessitate complying with SEC regulations. Raising capital for a new business or when an existing business needs additional funds these funds will also be covered under SEC compliance.

How to Know If Your Business is SEC Compliant

In addition to professional accounting sources, should a question arise regarding whether a business is compliant, large corporations rely on their legal departments to consult with SEC experts to know if the business is SEC compliant. Small businesses can find assistance online. However, in small businesses questions or complex issues may arise regarding specific state or federal compliance laws. If your small business does not have a legal department and has reached a difficult issue, the best course of action is to seek the services of a securities law attorney.

What Do Securities Law Attorneys Do?

The job of securities law attorneys is to assist clients to navigate complicated state and federal regulations. They help protect clients from financial scandals relating to raising funding for capital or investments that can damage business reputation. For many business owners, they require help with state laws to recover losses should a business find one or more of its independent financial advisers made erroneous decisions regarding stocks, bonds and a company’s mutual funds. Securities law attorneys are licensed and trained specifically in securities law. This allows business owners to place full faith and confidence in their assistance. Most business owners possess only peripheral knowledge of SEC compliance laws. With the assistance of a securities attorney, their depth of knowledge of securities law encompasses a wider range of federal and states compliance regulations.

Generally, their duties determine your business’ particular securities functions and provide guidance in structuring and implementation as they apply to business ownership and employee benefits.

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