1. Annual Obligations

1.1 What are the annual obligations of an LLC and Corp?

• Renew the registered agent

• Renew the mailing address

• File the Annual Report with the state where it was formed

• Pay applicable state taxes in the state of formation

• Submit the Tax Return to the IRS (it is mandatory to file a Tax Return each year, regardless of whether there was business activity)

• Depending on the state, there may be additional annual obligations, such as paying a Franchise Fee or submitting additional reports required by government authorities in the U.S.

2. Address

2.1 What address should I provide for my LLC or Corp?

The mailing address registered in the formation documents of your LLC or Corp, listed as the “Mailing Address.”

2.2 What happens if I give a third party an address other than the one listed as Mailing Address?

You will not receive the correspondence sent to that address, and it cannot be retrieved.

3. Tax Filings

3.1 What is a Tax Return?

It is the name given to the annual Tax Return filed with the IRS.

3.2 When should my LLC or Corp submit its Tax Return to the IRS?

• If your LLC or Corp is a Multi-Member, it must be submitted by March 15th each year.

• If your LLC or Corp is a Single Member, it must be submitted by April 15th each year.

4. BOI Report

4.1 What is the BOI Report and how does it work for new companies?

It is a mandatory report for all LLCs and Corps that certifies to FINCEN who the ultimate beneficial owner(s) of the structure are.

• LLCs and Corps formed before January 1, 2024, must file by January 1, 2025.

• LLCs and Corps formed after January 1, 2024, must file within 90 days from the formation date.

4. 2 What is FINCEN?

The Financial Crimes Enforcement Network

4.3 What is the penalty for not filing the BOI Report on time?

$500.00 per day until the report is filed.

5. State Reports

5.1 What are the penalties for failing to file state reports?

Penalties vary by state, and late fees often accumulate over time. Therefore, state taxes and required reports should be filed and paid on time.

6. Other Compliance

6.1 Am I required to maintain formal accounting for my LLC or Corp?

An LLC or Corp is not required to maintain formal accounting. A simple Excel sheet with income and expenses may suffice if the owner chooses to manage it this way. The owner of the LLC or Corp decides how to handle the accounting.

6.2 Do I have questions about deductible expenses for my LLC or Corp, like gas, supermarkets, restaurants, etc.?

We recommend consulting with an accountant in the U.S., as we do not provide accounting advice.

7. What is the INFORM law?

The INFORM Consumers Act is a U.S. law enacted on June 27, 2023. It imposes certain obligations on online marketplaces, including the Shop app, to collect, verify, and disclose specific information about high-volume sellers.

8. What is BE-13?

The BE-13 form is the Survey of New Foreign Direct Investment in the United States, used by the U.S. Bureau of Economic Analysis (BEA) to gather information about foreign-owned or financed companies in the U.S.

9. What is FBAR?

The FBAR, or Foreign Bank and Financial Accounts Report (Form 114), is a filing requirement for individuals who have an interest or signature authority over foreign financial accounts, and whose balances exceed $10,000 at any point during the year. It must be submitted annually to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department.

10. What is ETBUS?

ETBUS stands for Engaged In Trade or Business in the U.S. or ECI (Effectively Connected Income). It is a term used to determine if an entity, such as an LLC or Corp, is involved in business activities within the U.S. and therefore subject to certain federal taxes.

11. What is the DUNS number?

The Data Universal Numbering System (D-U-N-S) is a unique nine-digit identifier for businesses. You need a D-U-N-S Number to establish your company’s identity in the business world, facilitate commercial credit tracking, and enable participation in government contracts.