United States — Business: Annual Compliance

Why this matters

Relocating entrepreneurs and business owners need to understand annual compliance to avoid penalties, fines, and damage to their professional reputation.

Key facts

• Corporations pay income tax on profits, while sole proprietors, partnerships and LLCs pass income through to the owners.
• Employers file Form 941 quarterly, Form 940 for FUTA and Form W-2 for each employee at year end.
• LLC members are considered self-employed and pay self-employment tax toward Social Security and Medicare.
• State filings such as annual reports and registered agent maintenance are set by each state, and SBA says registered agents are required for LLCs, corporations and partnerships.

Steps

1. Federal Tax Compliance — File Form 1120 (corporate tax return) or Form 1065 (partnership tax return) with the IRS by the 15th day of the 3rd month after the end of the tax year. Additionally, file Form W-2 for employees and Form 1099 for independent contractors. Note: Specific deadlines may vary depending on the state and the type of business.
2. State Tax Compliance — Check with the state's department of revenue or taxation to determine specific annual tax filing requirements, including any additional forms or reports required. Deadlines may vary by state and business type.
3. Annual Reporting — File annual statements with the state, if required, and update business information, such as the registered agent's address, as needed.