📝 What Is Ongoing Compliance?
Once you form your U.S. company, you’re legally required to maintain it every year — even if you don’t earn income. This process is known as ongoing compliance, and it involves:
• Filing annual federal tax reports with the IRS
• Submitting state-level reports or franchise tax
• Maintaining an active registered agent
• Updating ownership details (BOI report)
• Paying renewal fees to keep your company “in good standing”
If you ignore these responsibilities, your company can be suspended, dissolved, or penalized.
🎯 Who Needs Annual Compliance Services?
• Single-member LLCs owned by non-residents
• Corporations with or without U.S. activity
• Any company with an EIN, Stripe account, or bank account
• Inactive businesses that haven’t shut down officially
• Companies aiming to keep their legal status clean and safe
Why Ongoing Compliance Is Essential
• ✅ Avoid penalties from the IRS and U.S. states
• ✅ Prevent automatic suspension or revocation of your company
• ✅ Maintain access to bank accounts, Stripe, PayPal, and Amazon
• ✅ Keep your company’s good standing certificate valid
• ✅ Ensure you’re legally protected and visible in U.S. records
• ✅ Build a trusted financial and legal track record
📋 What Are the Annual Requirements?
1. Federal Tax Filing (IRS)
• Required every year — even with $0 income
• Includes forms like 1120, 5472, or 1040-NR
• Filing deadline: April 15 (extension possible to October 15)
2. State Annual Report / Franchise Tax
• Most states require an annual report or fee
• Failure to file = immediate suspension or late penalties
• Example:
◦ Delaware = $300 flat franchise tax
◦ California = $800 minimum tax
◦ Wyoming = Annual report based on assets in the state
3. Registered Agent Renewal
• You must maintain a valid agent every year
• Without one, your company can be marked “void” or “revoked”
4. BOI Report Update (from 2024)
• Any changes in ownership or control must be updated within 30 days
• Failure to update = $500/day fine
⚠ Consequences of Ignoring Compliance
• ❌ $25,000+ IRS penalty for missing Form 5472
• ❌ $500/day fine for missing BOI updates (FinCEN rule)
• ❌ Company status changed to “Not in Good Standing”
• ❌ Inability to use your EIN, open bank accounts, or file taxes
• ❌ Stripe, Amazon, and banks may suspend your business
• ❌ Legal exposure if your company is considered “inactive”
Neglecting compliance doesn’t make the company disappear — it turns it into a legal liability.
🧾 Example Scenario
Abdullah from UAE formed a U.S. LLC but didn’t file any tax forms or renew his registered agent. A year later, the IRS fined him $25,000, and his state suspended the company. He had to pay legal fees just to shut it down correctly. All of this was avoidable with simple compliance steps.
🕒 When to File or Renew?
• Federal tax returns: By April 15 every year
• State annual reports: Usually based on the anniversary of formation
• Registered agent: Annually with your state
• BOI updates: Within 30 days of any ownership or control change
💡 Expert Tip from INCHUB
“Forming your company is the easy part — keeping it alive and compliant is the real business. Set reminders, get professional help, and never ignore your IRS or state obligations.”
