Check out business compliance actions for your US company in 2025.
Every new year brings business compliance resolutions. Following holiday gifts, come corporate reports, returns, and challenges.
What do you need to do about your US company this year for the previous year? Let’s take a quick look.
Business law compliance mainly relates to your ownership and management of an American company. You must, in particular, comply with corporate law requirements.
First, if not done already, prepare and file a beneficial ownership information report (shortly, BOIR) as soon as possible. For existing companies registered in the US before January 1st 2024, the BOIR submission deadline was January 1st 2025. FinCEN, however, postponed the deadline to January 13th 2025 and then put the BOIR filing requirement on hold due to a court case challenging the Corporate Transparency Act. So, watch the BOIR update closely.
Second, prepare and file an annual report as well as pay corporate franchise tax in the state of your company incorporation. If you hold a Delaware corporation, for example, file an annual report and pay corporate franchise tax, report filing fee, and annual fee to a registered agent of your corporation in Delaware. The deadline to file a Delaware annual report is March 1st of every year for the previous year.
Third, prepare and file a federal corporate income tax return (including form 1120 and, if applicable, form 5472). This is due by April 15th for the previous year, unless you file for extension. By the way, failure to file form 5472 timely may automatically result in an IRS fine of $25,000!
Fourth, prepare and file state tax returns (including corporate income and sales tax returns), where applicable.
Fifth, fulfill corporate governance compliance. For example, hold and document at least annual meetings of shareholders or members and board of directors or managers of your US company. This helps to observe corporate formalities in order to maintain the corporate shield and prevent piercing the corporate veil.
Sixth, file biennial statements (where applicable), like for an LLC in New York.
Seventh, prepare and file a report on your controlled foreign company (namely, your US entity) in your home country (for instance, Ukraine). It also normally requires preparing financial statements, such as a balance sheet and income statement, aka profit and loss statement (P&L).
These are just basic company compliance actions. Depending on your business, other requirements may apply as well. They may even urge you to get a legal compliance officer.
If you need help with your business law compliance, just leave your comment below.
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