Comprehensive Accounting Support in the USA

In the United States, the requirement to file annual corporate reports and tax returns depends on several factors, including the legal structure and activities of the company.
1. Corporations. Most corporations, including C corporations and S corporations, are generally required to file annual corporate reports and tax returns. C corporations file Form 1120 (U.S. Income Tax Return) and S corporations file Form 1120S (U.S. Income Tax Return for S Corporation).
2. Partnership (LLP). Partnerships are generally required to file an annual tax return on Form 1065 (U.S. Partnership Income Tax Return) to report income, deductions and other relevant information. However, partnerships do not pay taxes directly. Instead, they pass through profits and losses to their partners, who report their share of partnership income on their individual tax returns.
3. Limited liability companies (LLCs). The filing requirements for LLCs depend on how the company is classified for tax purposes. LLCs with a single member are generally treated as disregarded entities, and the owner reports business income and expenses on his or her individual tax return (Form 1040). LLCs with multiple members are generally treated as partnerships for tax purposes and must file Form 1065.

Failure to file tax returns on time always results in fines from the Internal Revenue Service (IRS). Specific penalties and amounts may vary depending on the reasons. The most commonly applied penalties are:
1. Penalty for failure to file a tax return. A penalty for failure to file a tax return is imposed if a corporation fails to file a tax return by the due date, including any extensions granted. The penalty is calculated on the basis of the amount of tax due and is generally a percentage of the unpaid tax for each month or part of a month during which the return is overdue. The penalty may vary from 5% to 25% of the unpaid tax.
2. Minimum penalty. If a corporation fails to file its tax return within 60 days after the due date (or an extended deadline), a minimum penalty may be imposed. The minimum penalty is the lesser of the amount due or USD 435 for each month or part of a month that the return is overdue.
3. Penalty for late payment. In addition to the penalty for failure to file a return, a separate late payment penalty may apply if a corporation fails to pay the taxes due by the due date. The late payment penalty is usually 0.5% of the unpaid tax for each month or part of a month during which the tax remains unpaid, but not more than 25% of the unpaid tax.

A single-member LLC that is not classified as a corporation for tax purposes is treated as a disregarded entity. In most cases, it is still necessary to report on its activities using Form 5472 (information return for foreign-owned LLC). The LLC’s income should be reflected in the member’s personal tax return. As a non-resident, you are subject to US federal income tax only on income that is sourced directly in the US (for example, the sale of real estate).

Yes, it is still necessary to submit reports, but the cost of such reporting is not high, as the CPA prepares a standard package of documents.

Yes, you can prepare and file a tax return for your company in the United States, even if you are not a certified public accountant. Many business owners file their own tax returns, especially small businesses. However, it is important to note that tax laws and regulations can be complex, and there are potential risks and consequences associated with inaccuracies or non-compliance. If you decide to prepare and file your company’s tax return yourself, you will need to:
1. Understand the tax laws: Familiarise yourself with the relevant tax laws and regulations that apply to your business. The Internal Revenue Service (IRS) provides resources, publications, and guidance to help you understand and interpret the tax rules: www.irs.gov.
2.Use tax software or online tax filing services specifically designed for business tax returns. These tools often guide you through the process, ask relevant questions, and help you fill out the required forms accurately.
3. Seek professional advice. If you are unsure about certain tax issues or are facing complex tax situations, it may be helpful to consult a certified public accountant (CPA) or tax professional. They can provide guidance, answer your questions and ensure that you are taking advantage of all applicable deductions, credits and incentives. Errors or omissions can result in penalties, interest, or even audits.