This article is for admins who want Gusto to manage their state business compliance.
Your business has obligations beyond payroll taxes. Most states expect you to register your business, keep a registered agent on file, file a report each year, and respond to government mail. The requirements are different in every state where you operate.
Business Compliance is an add-on. You choose the states you want covered, and we handle the registrations, filings, and mail for each one.
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You can add Business Compliance if all of these are true:
You run payroll with Gusto. Business Compliance is not available on its own.
You are on the Solo, Simple, Plus, or Premium plan. It is included with Premium at no extra cost.
Your business is a corporation (including an S corporation, professional corporation, or nonprofit corporation), a limited liability company (LLC), or a professional limited liability company (PLLC). An LLC qualifies however it is taxed.
Business Compliance is not available yet for sole proprietors, general partnerships, limited partnerships, or limited liability partnerships (LLPs).
Business Compliance is also not available for cannabis-related businesses, on any plan.
If you are not sure whether your business qualifies, chat with us before you sign up.
Business Compliance works state by state. Each state you add includes:
Registered agent — we accept legal and government mail for your business in that state.
Change of registered agent — we file the change with the state so your mail comes to us.
Foreign qualification — we register your business with that state's Secretary of State so you can legally operate there.
State tax registration — we register your business with that state's tax agencies when you hire or begin operating there.
Annual report filing — we file the report that state requires to keep your business in good standing.
Government mail monitoring — mail from that state's agencies is scanned into Gusto with a plain-language explanation of what it means and what to do next.
Proactive alerts — we tell you about a deadline in that state before it arrives.
Your subscription also includes a compliance concierge team, no matter how many states you cover.
Business Compliance costs $85 per state, per month, billed monthly. It is included with the Premium plan at no extra cost. State filing fees are charged at cost and appear on your invoice alongside the service.
Registration with Paid Family and Medical Leave (PFML) or local tax agencies is not included. If your state requires it, see Register for PFML and local taxes.
Sign in to Gusto.
Go to Taxes & Compliance.
Select Business compliance.
Answer the questions about your business and the states where you operate.
Review the price and what is included, then confirm.
After your first state is set up, you can see its registrations and anything still left to do.
When you add an employee or a work location in a new state, that state appears under Your states with a status of Setup in progress and the next step to complete. Steps often include telling us more about your business in that state and transferring your registered agent to us.
Select Start on a task to complete it, or View state details to see everything for that state. Once every step is done, the state's status changes to Active.
To act as your registered agent in a state, we file a change of registered agent with that state.
When a state needs this, it appears as a task on that state's card under Your states. Select Start to begin.
Keep your current registered agent in place until we confirm the transfer is complete. A gap in registered agent coverage can put your business out of good standing in that state.
Once a state is active, Gusto takes over the ongoing work there — reviewing your government mail, tracking your filing deadlines, and giving you a compliance concierge team to ask about any of it.
Your Business compliance page also shows your Compliance documents for your registrations and filings, and Tax account details for the state tax accounts tied to your registrations.
Because we are your registered agent, legal mail for your business comes to us.
Other mail from state agencies is scanned and appears under Agency notices on your Business compliance page. Each notice shows which state it came from and when it arrived, with a plain-language explanation of what it means and what to do next. Select Unread or State to filter the list, then select any notice to read it.
If you are still not sure what a notice means or what to do about it, select Ask concierge about this mail on that notice. Your compliance concierge team follows up to explain what it means and what, if anything, you need to do.
If a notice is about your state payroll taxes, your concierge team brings in our tax resolution team to help you resolve it. To learn more about payroll tax notices, see How to handle a tax notice from an agency.
When you sign up for Business Compliance, you are assigned a compliance concierge team. They:
Learn your business and the states where you operate.
Check in regularly to confirm your filings are on track and review your overall compliance health.
Review any government mail you are unsure about and tell you what it means.
Answer questions about your Business Compliance account.
You can reach them any time from your Business compliance page by selecting Talk to a compliance concierge, or by emailing [email protected].
We track the filing and renewal deadlines for the states you cover, including annual reports, franchise tax filings, and business license renewals.
You receive a notice in Gusto and by email ahead of each deadline.
We file what we can on your behalf. When a filing needs your approval first, we send it to you with time to review.
Go to Taxes & Compliance → Business compliance → Manage subscription.
To stop coverage in one state, select Remove next to that state.
To cancel Business Compliance entirely, select Leave Business Compliance.
If Business Compliance is included with your Premium plan, you see a note on this page letting you know.
Before you remove a state: When you remove a state, Gusto stops acting as your registered agent there. Most states require every business to keep a registered agent on file, so appoint a new agent in that state to stay in good standing. We also stop monitoring that state's government mail and tracking its deadlines.
These services are available when you need them and are billed separately from your subscription:
Certificate of good standing — official proof that your business is authorized to operate and in good standing. Useful when you apply for a loan, sign a contract, or raise investment.
Business license report — a report of the federal, state, and local licenses and permits your business needs, based on where you are and what you do.
State account closure — closes your state tax accounts when you stop operating in a state.
Initial report — the first report some states require shortly after you register with the Secretary of State.
Franchise tax filing — we prepare your Delaware franchise tax filing, submit it, and pay the state from your connected bank account.
You can order a certificate of good standing, or close your state tax accounts, from your Business compliance page.
Legal and tax advice. We do not provide it. For guidance specific to your business, talk to a lawyer or an accountant.
Payroll taxes. Gusto payroll already handles the taxes tied to paying your employees. Business Compliance covers what your business owes as a business.
Forming a new business entity. We register an existing business to operate in a new state. We do not form new entities.
Sales tax. We do not register you for sales tax or file sales tax returns.
Professional and industry licenses. We do not get or renew licenses that are specific to your profession or industry, or handle the reporting those licenses require.
Reinstating a business or reopening accounts. We do not reinstate a business with the Secretary of State or reopen closed payroll tax accounts.
General mail. We monitor payroll and compliance notices from government agencies, not other mail for your business.
Why does my business need to register in a state? Once your business has an employee, a location, or other operations in a state, that state's requirements apply to you — registration, filings, taxes, and renewals. This is separate from registering so you can run payroll there.
How is this different from the payroll taxes Gusto already handles? Gusto payroll handles the taxes tied to paying your employees. Business Compliance covers what your business owes as a business: Secretary of State registration, annual reports, registered agent service, and related state requirements.
I am already registered in my state. Do I still need this? Registering is the first step. Staying in good standing is ongoing. Business Compliance keeps you there by acting as your registered agent, watching your government mail, filing your annual reports, and alerting you before anything is due.
How much does Business Compliance cost? $85 per state, per month, billed monthly. It is included with the Premium plan at no extra cost. State filing fees are charged at cost, and one-time services are billed separately. You see the price and what is included before you confirm.
I already paid for a one-time registration. What happens if I add Business Compliance? Email the compliance concierge team at [email protected]. They will review your account and let you know what options are available.
If you only need to register in a single state and do not want a subscription, you can order a one-time state tax registration instead. See Order a one-time state tax registration.