Built to Own

9 | Licensing and Compliance Essentials

Compliance is the quiet operating system of your business. Miss a renewal, and things stop moving. Organize your compliance calendar across four layers:

T Bank Insight We confirm license transferability and closing conditions before funding. If any required filings or inspections are scheduled close to the closing date, we bake that into the seller's obligation.

Annual renewals

Quarterly filings sales tax

business licenses state filings insurance certs professional certifications

unemployment insurance DOT environmental reports change of ownership triggers (e.g., new EIN) permit recertifications fire inspections

Monthly tasks

“As needed” compliance

payroll taxes safety checklists equipment logs

Action Checklist Build a permit and license tracker with due dates Verify critical licenses directly with issuing agencies Add seller assistance clauses for items due within 90 days Quick Summary Compliance protects your cash flow. Build a system — not just reminders. They discovered a stormwater permit expiring 45 days after closing. T Bank flagged the issue and added a seller-assistance clause to renew it pre-close. Crisis avoided. Industry red flags to check early: Healthcare: HIPAA training logs, medical waste contracts, payer credentialing Construction: License tied to a qualifying individual — will they stay post- close? Logistics: DOT authority, driver qualification files, IFTA fuel tax reports Food Services: Health inspections, ServSafe certifications, grease trap logs Case Example — Light Manufacturing Buyer

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For informational purposes only. Not legal, tax, or financial advice.

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