In the dynamic business world, Limited Liability Companies (LLCs) have developed as a first popular choice for entrepreneurs due to their flexible structure and limited liability protection. Business must be carried separately from oneself to provide a limited liability protection to personal assets. For that, it is mandatory to keep your LLC in compliance with all annual maintenance requirements which includes conducting meetings, saving meeting minutes, preparing resolutions to authorize corporate actions, maintaining a Registered Agent, Filing Annual Report, paying your Franchise Taxes and filing Federal/ State Tax Returns. Although compliance requirements vary by state and entity, the following main compliances needs to be followed by LLCs and Corporations:
Annual Report
In Most of the USA states, Annual Reports needs to be filed to keep your business in “Good Standing” with the state. The state of Delaware charges every LLC an annual $300 “Franchise Tax” due on 1st June for the previous calendar year. For example, if you register at any time in 2023, you will owe $300 on 1st June, 2023. The state is very strict with this payment deadline, and immediately add a $200 late penalty plus interest, on 2nd June. The Delaware Franchise Tax for a corporation is based on your corporation type and the number of authorized shares your company has (Minimum is $ 225 per year). C-corporations must file an annual report with the Delaware DOC (which is associated with the payment of the state’s franchise tax). The annual report filing fee for foreign corporations is $ 125 plus franchise taxes ($ 300) due upon filing of the report. The annual report is filed online.
The annual fee in Wyoming is generally $62 and if the value of corporate assets located in the state exceeds $ 300000 than additional $.0002 per dollar of all business assets will be levied. The LLC shall file an annual report each year. The annual report in Wyoming is due by the first day of LLC’s anniversary month and is filed with WY Secretary of State. It can be completed online on the Secretary of State Website.
Registered Agent Fee
Every state requires each registered entity to maintain a “Registered Agent”. For official, legal and tax correspondence, a registered agent address is required in U.S where all the correspondences can be sent and serviced for the LLC or C- Corporation. We will be your agent for the first year for free. On the first day of the anniversary month of your order, we will begin charging an annual fee of $200.
Federal Tax Returns
A C-corporation or an LLC filing as corporation is liable to file Form 1120 every year. Form 1120 is U.S. Corporate Income Tax Return that corporates use to report their income, gains, losses, deductions, and credits. A Corporate with a year-end date of December 31st must file its Form 1120 by April 15th. Form 1099 needs to be issued, if you have paid more than $600 during the year. Last Date to issue Form 1099 is January 31, 2024. Sometimes, you have made any federal tax withholding payments during the tax year. There are different types of tax forms that shows US tax withheld during the tax year. For example: W-2 for wages withheld if you have hired any employee during the year. Form W-2 Issuance last date is January 31, 2024.
Extension of Tax Return Filing
Federal tax extension Form 7004 can be filed for application of automatic extension of six months to file your return of income. Non-US Citizen with Single Member LLC will require Extension for Form 1120. Due date of filing Form 7004 is on or before the due date of filing the applicable tax return. So, in case of a corporate, deadline to file Form 7004 is April 18th. In case of a Partnership, due date of filing Form 7004 is March 15th.
Filing of State Tax Return
Income Tax is not levied on any income in Wyoming. So, there is no requirement of State Tax Filing. But in Delaware, LLC is liable for State Tax Return due by April 15, 2024.
Others
The Corporate Transparency Act of 2019 becomes effective January 1, 2024. Most small companies/entities will be required to submit Beneficial Ownership Information to the U.S. Treasury. The wilful failure to report complete or updated beneficial ownership information to FinCEN, or the wilful provision of or attempt to provide false or fraudulent beneficial ownership information may result in a civil or criminal penalties, including civil penalties of up to $500 for each day that the violation continues, or criminal penalties including imprisonment for up to two years and/or a fine of up to $10,000. Senior officers of an entity that fails to file a required BOI report may be held accountable for that failure.
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