US Business Compliance Checklist

ANNUAL COMPLIANCE TASKS

Federal Tax Filings: Per IRC §6012 (Filing Requirements)

File Form 1120 (Corporate Tax Return) by March 15 or Oct 15 (6-month extension per §6012(a))

Pay corporate income tax (21% federal rate per IRC §11 TCJA)

Claim all business deductions (§162 - wages, rent, depreciation per §167)

File state corporate income tax returns (if applicable)

File franchise tax reports (Texas, Ohio, gross receipts per state)

Penalty for late Form 1120: 5% per month, max 25% per IRC §6651(a)(1). Interest: 8% annual per §6601

Employment Compliance: Per IRC §6001 (Record-Keeping)

File W-2s for each employee by Jan 31 per §6051 (3 copies + SSA)

File 1099-NEC for contractors ≥$600 income per §6041(a)

File 1099-MISC for other payments ≥$600 per §6041(a)

File Form 1096 (1099 transmittal) by Feb 28 per §6041(d)

File Form 5500 (retirement plan) if 401k present per §6059

Verify I-9 compliance (employment eligibility verification per 8 USC §1324a)

Penalty: Missing W-2 = $100+ per form per IRC §6721. Misclassification (1099 vs W-2): Back wages + 100% penalties

State Filings:

Delaware Annual Report (if DE-incorporated): March 1 deadline per DGCL §9013

Delaware Franchise Tax payment (due same day per §9013)

Foreign qualification in operating states (if operating outside DE)

Sales tax annual reconciliation (compare quarterly filings)

Corporate Governance: Per DGCL §211 (Annual Meeting)

Hold annual shareholder meeting (document via proxy voting if public)

Hold annual Board of Directors meeting (document minutes per §141)

Document all Board resolutions (major decisions: hiring, contracts, dividends)

Elect Board members (per §211(b) shareholder voting)

Update stock ledger (track shareholder changes)

Maintain corporate records book (current directors/officers)

Verify D&O insurance coverage (adequate for company size)

Minutes required for litigation defense (business judgment rule protection per DGCL §141(b)). Retain 7 years per IRC §6001

Tax & Accounting: Per IRC §162 (Business Deductions)

Conduct annual financial audit (reconcile subsidiary ledgers)

Prepare tax provision (deferred tax assets/liabilities)

Verify fixed asset register (MACRS depreciation per §167)

Review inventory valuation (FIFO/LIFO consistency per §471)

Obtain CPA audit letter (if revenues >$50M per PCAOB)

Approve executive compensation (verify reasonableness per §162(a))

QUARTERLY TASKS

Estimated Tax Payments: Per IRC §6655 (Estimated Tax)

Calculate estimated tax (Form 1120-ES per §6655(d))

Pay by quarterly deadline: April 15, June 15, Sept 15, Jan 15 per §6655(e)

File Form 941 (employment tax return) - 4 per year per §6011(a)

Deposit payroll taxes via EFTPS (federal per §6302)

Remit state payroll taxes (if applicable by state)

Penalty: 8% annual rate for underpayment per §6655(h) - even if refund due at year-end!

State Compliance:

File sales tax returns (by state deadline, typically 20th of month)

Remit sales tax collected (due same date as return)

File unemployment insurance reports (quarterly per FUTA §3301)

Verify business licenses current (renewal if expired)

MONTHLY TASKS

Accounting & Finance: Per IRC §162 (Business Deduction Substantiation)

Reconcile corporate bank account (all deposits/withdrawals)

Review accounts receivable (outstanding invoices)

Review accounts payable (bills unpaid)

Document business expenses (receipts kept - audit trail per §162)

Verify no commingling personal/business funds (liability protection)

Process monthly payroll (if employees, timely per §3502)

Verify payroll tax withholding accuracy (W-4 forms current)

IRS can audit 3 years back (6 years if >25% income underreported per §6501). Keep receipts 7 years per §6001(a)

PENALTY SUMMARY

Failure to File/Pay:
• Form 1120 late: 5% per month (max 25%) + 8% interest per §6651
• Form 941 late: 2-10% of tax due per §6651(a)(2)
• Estimated tax underpayment: 8% penalty per §6655(g)
• Payroll tax not withheld: 100% penalty per §6672(a) (personally liable)
• Missing W-2: $100+ per form per §6721

CRITICAL US COMPLIANCE: Form 1120 deadline: March 15 (6-month extension to Oct 15) per IRC §6012. Quarterly estimated taxes: April, June, Sept, Jan 15 per §6655 (8% penalty if late). W-2s due Jan 31 per §6051; 1099s due Feb 28 per §6041. Delaware Annual Report: March 1 per DGCL §9013 (if DE-incorporated). Hold annual shareholder + Board meeting (document minutes per §141). Employee I-9 verification mandatory per 8 USC §1324a. Payroll withholding MANDATORY (100% penalty per §6672). Quarterly Form 941 required (4 per year per §6011). Estimated tax penalty harsh (8% even if refund due per §6655(h)). Sales tax collection/remittance by state deadline. Form 5500 if retirement plan (401k) per §6059. D&O insurance adequate for liability protection. Commingling funds violates liability shield - pierce corporate veil.