Although specific requirements may vary depending on the circumstances, the most common obligations include:  

1. Filing Annual Reports  

- What It Is: An annual report is a mandatory filing that provides the state with updated information about your business entity, including its address, registered agent, and members or shareholders.  

- Who Needs to File: Both LLCs and C-Corps are required to file annual reports in most states.  

- When to File: The filing deadline varies by state but is typically due on the anniversary of the entity’s formation or at the end of the calendar year.  

- Consequences of Non-Compliance: Failure to file an annual report can result in penalties, late fees, or even the dissolution of your business entity.  

2. Renewing Registered Agent Services  

- What It Is: A registered agent is a person or service responsible for receiving legal documents and official notices on behalf of your business. If you don’t reside in the US, you must appoint a registered agent in the state where your business is registered.  

- Who Needs It: All US business entities, including foreign-owned LLCs and C-Corps, are required to maintain a registered agent.  

- When to Renew: Registered agent services are typically renewed annually, though some providers offer multi-year contracts.  

- Consequences of Non-Compliance: Not having a registered agent can result in missed legal notices and can jeopardize your entity’s standing with the state.  

3. Paying State Franchise Taxes  

- What It Is: Franchise taxes are fees that states charge for the privilege of doing business in that state. They are not based on income but rather on the entity's net worth or the amount of capital employed within the state.  

- Who Needs to Pay: The requirement applies to both LLCs and C-Corps, though the calculation method and rates vary by state.  

- When to Pay: Franchise taxes are typically due annually, with deadlines varying by state.  

- Consequences of Non-Compliance: Non-payment of franchise taxes can result in penalties, interest, and the suspension or forfeiture of your business entity.  

4. Maintaining Corporate-Minutes & Records

- What It Is: Corporate minutes document the decisions made during board meetings and shareholder meetings. These records are crucial for demonstrating that your entity is operating as a separate legal entity.  

- Who Needs to Maintain Them: C-Corps are required to keep detailed minutes of meetings. While LLCs are not always required by law to keep minutes, doing so is a best practice for maintaining limited liability protection.  

- When to Record: Minutes should be recorded for all official meetings, including annual meetings.  

- Consequences of Non-Compliance: Failure to maintain accurate records can lead to a piercing of the corporate veil, potentially exposing shareholders or members to personal liability.  

5. Renewing Business Licenses and Permits  

- What It Is: Depending on your business activities, you may need specific licenses and permits to operate legally. These can include industry-specific licenses, health department permits, and local business licenses.  

- Who Needs Them: Any business entity engaged in regulated activities or operating in jurisdictions that require business licenses.  

- When to Renew: License and permit renewal schedules vary by type and jurisdiction, with some requiring annual renewal.  

- Consequences of Non-Compliance: Operating without the necessary licenses or permits can result in fines, business closure, or other legal actions.  

6. Filing Federal and State Tax Returns  

- What It Is: All US business entities are required to file annual tax returns with the IRS. Depending on the state of incorporation and operation, you may also need to file state tax returns.  

- Who Needs to File: C-Corps must file Form 1120, while LLCs typically file Form 1065 if taxed as a partnership or Form 1040 with a Schedule C if a single-member LLC.  

- When to File: The federal tax deadline is March 15th for most business entities, with state tax deadlines varying by state.  

- Consequences of Non-Compliance: Failure to file tax returns or pay taxes can result in substantial penalties, interest, and legal action from the IRS or state tax authorities.  

7. Renewing Foreign Qualification

- What It Is: If your business operates in multiple states, you may need to file for foreign qualification in each state. This process allows your entity to legally conduct business outside its state of formation.  

- Who Needs It: Any business entity operating in a state other than where it was originally incorporated or formed.

- When to Renew: Renewal requirements vary by state, but annual reports and fees are typically part of the foreign qualification maintenance.  

- Consequences of Non-Compliance: Operating without foreign qualification can result in fines, legal penalties, and the inability to enforce contracts within that state.  

8. Complying with Employment Laws  

- What It Is: If your business entity has employees in the US, you must comply with federal and state employment laws, including payroll taxes, workers’ compensation, and unemployment insurance.  

- Who Needs to Comply: Any business entity with employees.  

- When to Comply: Compliance is an ongoing requirement, with specific deadlines for payroll tax filings and insurance payments.  

- Consequences of Non-Compliance: Non-compliance can lead to fines, lawsuits, and damage to your business’s reputation.  

9. Conducting Annual Meetings  

- What It Is: Annual meetings are formal gatherings where shareholders (for C-Corps) or members (for LLCs) discuss and vote on important company matters.  

- Who Needs to Conduct Them: C-Corps are required to hold annual meetings. While not mandatory for LLCs, holding annual meetings is recommended to formalize decisions and maintain limited liability protection.  

- When to Hold: Annual meetings should be held once a year, with specific timing outlined in the entity’s bylaws or operating agreement.  

- Consequences of Non-Compliance: Failure to hold annual meetings can undermine the legitimacy of the corporate entity and risk the loss of limited liability protection.  

10. Fulfilling Foreign Bank Account Reporting (FBAR) Requirements  

- What It Is: If your US business entity has foreign financial accounts totaling more than $10,000 at any point during the year, you must file an FBAR with the US Treasury Department.  

- Who Needs to File: Any US business entity with foreign financial accounts meeting the threshold.  

- When to File: The FBAR is due annually by April 15th, with an automatic extension to October 15th if needed.  

- Consequences of Non-Compliance: Failure to file an FBAR can result in significant fines and penalties, including criminal charges in severe cases.  

Conclusion  

Navigating the annual recurrent requirements of a US business entity can be challenging, especially for non-residents unfamiliar with US regulations. To ensure full compliance and avoid costly penalties, many foreign entrepreneurs partner with professional service providers who specialize in US business compliance.  

At MyInc Team, we offer comprehensive compliance management services tailored to the needs of foreign-owned businesses. Whether you need help with filing reports, renewing licenses, or fulfilling tax obligations, we’re here to support your business’s ongoing success in the US market.  

Get in touch with us today to learn how we can help your business stay fully compliant and thrive in the competitive US business landscape!