After you incorporate or form an LLC there are some basics to keep in mind to maintain your new business entity. Tip: Read our Business Tax Guide for detailed information about taxes and other recurring requirements.
Most states require some kind of Annual Report and filing fee. The purpose of this filing is to keep the state apprised of your company address and (sometimes) the names and addresses of your company owners. Check our Annual Report page to see what your state requires.
Uncle Sam will want you to file tax returns for your new business entity (regardless of the type of business entity and if it’s “pass through” or not). For S-Corporations, LLCs and DBAs the owner reports the income on their personal tax return. For C-Corporations the company will be taxed on the company’s income (as well as when it is distributed to shareholders). The good news is that Turbotax and other tax automation software can handle most if not all of this requirement.
In addition to an Annual Report, some states levy a tax on your business income or for the privilege of doing business in your state.
That’s the basics of keeping the business entity maintained. If you want to make sure your company is not only maintained but is fully compliant and maintains your “corporate veil” please read about our compliance recommendations.