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United States · Tax, accounting & company complianceUS tax and compliance for companies run from Texas, London or Lahore

We form US LLCs and corporations, put the federal and state registrations in place, and prepare the returns that follow. We work with US owners, founders based abroad, and telecom and VoIP operators.

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Tax year
Calendar year by default
Currency
US dollar (USD)
Main authorities
IRS · SOS · DOR · FinCEN
Services
15 covered on this site
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Overhead view of hands holding a blank 2025 US Form 1040 tax return and a white pen, beside a calculator, a cup of black coffee and a laptop on a dark green knit blanket

Tax year

Calendar year by default

The system in brief

How the USA taxes a business.

The US does not have one tax system for businesses. It has a federal system run by the Internal Revenue Service (IRS), a separate system in each of the 50 states and Washington, DC, and in many places city and county taxes on top. A company formed in Wyoming, run from Lahore and selling to customers in Texas can owe filings to the IRS, to Wyoming and to Texas, each on its own calendar.

Your choice of entity sets the federal return. By default a single-member LLC is ignored for income tax and its profit lands on the owner’s return, a multi-member LLC files as a partnership, and a corporation pays tax itself unless it elects S corporation status. Owners based outside the US add another layer: a foreign-owned single-member LLC must file Form 5472 with the IRS every year, even when it owes no US income tax.

Sales tax is the other surprise for newcomers. There is no federal sales tax or VAT. Each state sets its own rules, and since the Supreme Court’s 2018 decision in South Dakota v. Wayfair, states can require out-of-state sellers to register and collect once their sales into the state pass an economic threshold, with no office or staff there at all.

Our US practice is organised around three groups: US small businesses, founders abroad (from Pakistan, the UK, the UAE and elsewhere) running US LLCs and corporations, and telecom and VoIP operators whose FCC filings and communications taxes sit alongside ordinary business tax.

In practice, individuals, sole proprietors and single-member LLCs owned by individuals report on the calendar year (January 1 to December 31). A C corporation can adopt a fiscal year ending on the last day of any month. Partnerships and S corporations generally must use the calendar year unless they can show a business purpose for a different year or make a section 444 election.

Who you’ll deal with

The authorities, and what each one wants.

Knowing which body handles what saves a great deal of time. These are the ones most US businesses meet.

  • IRS

    Internal Revenue Service

    Administers federal income, payroll and excise taxes, and issues EINs and ITINs.

  • SOS

    Secretaries of State (state business filing offices)

    Form LLCs and corporations, register out-of-state companies, and collect annual reports and fees; in Delaware this is the Division of Corporations.

  • DOR

    State departments of revenue

    Run sales and use tax, state income or franchise tax and payroll withholding; unemployment insurance is usually handled by a separate state workforce agency. Names vary, such as the Texas Comptroller or California’s CDTFA and FTB.

  • FinCEN

    Financial Crimes Enforcement Network

    Receives FBAR reports of foreign accounts and, since its August 2026 final rule, beneficial ownership (BOI) reports only from non-US companies registered to do business in a US state.

  • FCC

    Federal Communications Commission

    Regulates interstate telecom and VoIP, issues FCC Registration Numbers, and receives Robocall Mitigation Database filings and annual CPNI certifications.

  • USAC

    Universal Service Administrative Company

    Administers the federal Universal Service Fund for the FCC, collecting Form 499-A and 499-Q revenue reports and billing contributions.

  • PUC

    State public utility commissions

    In some states, register telecom providers and oversee state universal service and similar surcharges; how far they cover VoIP varies by state.

How it works

What a business owner in the USA needs to understand.

  1. 01

    Two layers of income tax

    The IRS taxes business income federally, and most states tax it again under their own rules, as corporate income tax, franchise tax or tax on the owners’ personal returns. A few states have no personal income tax, and states differ on how closely they follow federal rules, so the state figure is rarely a simple percentage of the federal one.

  2. 02

    The entity decides the return

    LLCs get a default tax classification (disregarded entity or partnership) and can elect to be taxed as a corporation on Form 8832 or as an S corporation on Form 2553. C corporations pay a flat 21% federal rate; partnerships and S corporations pass income through to their owners on Schedule K-1.

  3. 03

    Sales tax is state and local

    Forty-five states and DC levy a statewide sales tax, and thousands of cities, counties and districts add their own. You register and collect where you have nexus: physical presence such as an office, staff or stored inventory, or economic nexus from sales into the state. Thresholds are set state by state, and $100,000 of annual sales is the most common at the time of writing.

  4. 04

    Payroll runs on its own calendar

    Employers file Form 941 quarterly and Form 940 annually with the IRS, furnish Forms W-2 by January 31, and need state withholding and unemployment insurance accounts in each state where employees work. A remote hire in a new state usually means new state registrations.

  5. 05

    Foreign ownership adds reporting

    A US company owned from abroad is taxed under the same rules as any other, but the IRS asks for more information: Form 5472 from foreign-owned single-member LLCs and from corporations at least 25% foreign-owned, and withholding on foreign partners’ share of a partnership’s US business income. Whether a foreign owner personally owes US tax depends on whether the income is effectively connected with a US trade or business, and on any tax treaty.

  6. 06

    Telecom has its own layer

    Telecom carriers and interconnected VoIP providers report revenue to USAC on FCC Form 499 and may contribute to the federal Universal Service Fund. States and localities add communications taxes, 911 fees and state universal service charges, and voice providers must keep their Robocall Mitigation Database filing current with the FCC.

United States services

What we handle in the USA.

Business & Incorporation

Tax

Accounting

Compare with the same services in other countries

United States

Federal, state and sometimes city: three layers of obligations for one company.

Founders outside the US

Forming a US company from outside the US

You don’t need to live in the US or hold a visa to form a US LLC or corporation. You do need the steps in the right order, because each one depends on paperwork from the one before. This is the sequence we follow for founders based in Pakistan, the UK and elsewhere.

Companies formed in the US no longer file beneficial ownership (BOI) reports with FinCEN under its final rule effective August 14, 2026. A company formed outside the US that registers to do business in a US state may still have to report.

Talk it through with us

  1. Choose the state and the entity

    If you will have no US office or staff, Delaware and Wyoming are common choices; if you will operate from a particular state, forming there is usually simpler. Most solo founders choose a single-member LLC, while a Delaware C corporation suits plans to raise investment.

    Your decision, with our input

  2. File formation documents and appoint a registered agent

    The state’s formation document (a certificate of formation for a Delaware LLC, articles of organization in Wyoming) goes to its business filing office. Every state requires a registered agent with a physical in-state address to accept legal notices. Processing times vary by state.

    Secretary of State

  3. Apply for the EIN

    The IRS online application needs a US-based business and a responsible party with an SSN or ITIN, so most founders abroad file Form SS-4 by fax or mail, or use the IRS international phone line. The IRS estimates about 4 business days by fax and about 4 weeks by mail. You don’t need an ITIN first.

    IRS · Form SS-4

  4. Sign an operating agreement or bylaws

    An LLC’s operating agreement, or a corporation’s bylaws, share issuance and board consents, are not usually filed with the state, but banks ask for them. They record who owns the company, who can sign and what happens if an owner leaves.

    Internal company records

  5. Open a US bank or fintech account

    Expect to provide the formation documents, the IRS EIN confirmation (CP 575 notice), your passport and proof of address. Some banks require an in-person visit, while some fintech providers accept non-resident founders remotely. Each provider makes its own decision.

    The provider’s own checks

  6. Register for state taxes where needed

    A sales tax permit is needed only where you have nexus and sell something taxable; withholding and unemployment insurance accounts only where you have employees. Many service businesses run from abroad need none at the start, but it should be checked, not assumed.

    State departments of revenue

  7. Keep books from day one

    Record every transfer between you and the company. For a foreign-owned single-member LLC, money you put in or take out is a reportable transaction on Form 5472, so it needs to be traceable from the first deposit.

    Monthly bookkeeping

  8. File first-year returns and annual reports

    A foreign-owned single-member LLC files a pro forma Form 1120 with Form 5472 by April 15 for a calendar year, by fax or mail, as it cannot be e-filed. The state separately expects its annual report or tax, for example Delaware’s $300 annual LLC tax by June 1 at the time of writing.

    IRS · Form 5472 · State filing office

Choosing a structure

How the common US business structures are treated for federal tax

ComparedSingle-member LLCMulti-member LLCC corporationS corporation
Default federal tax treatmentDisregarded; profit reported by the ownerPartnership; profit passes through to membersTaxed at company level, 21% federal ratePass-through, after a Form 2553 election
Main federal returnOwner’s Form 1040 Schedule C, or pro forma 1120 if foreign-ownedForm 1065, with a Schedule K-1 for each memberForm 1120Form 1120-S, with a Schedule K-1 for each shareholder
Who can own itOne person or company, living anywhereTwo or more people or companies, living anywhereAnyone, in any number, living anywhereUp to 100 eligible shareholders; no nonresident aliens
Foreign-owner reportingForm 5472 with a pro forma 1120, every yearWithholding on foreign members’ US business income (Forms 8804/8805)Form 5472 if at least 25% foreign-ownedNot available: a nonresident alien shareholder ends S status
Self-employment tax (US owners)On net profit, via Schedule SEGenerally on active members’ share of profitNone; owners are paid salary or dividendsPayroll tax on a reasonable salary only
Typical fitSolo founders, including non-residents invoicing US clientsCo-founders and family businesses wanting pass-through treatmentStart-ups raising investment or reinvesting profitsProfitable US-resident owners paying themselves a salary
“S corporation” is a federal tax election, not a separate legal entity: a corporation or an LLC can make it if all owners are eligible. State treatment differs, and some states charge LLCs annual or franchise taxes whatever their federal classification.

Common situations

What’s involved, case by case.

Illustrative composites of situations we’re commonly asked about. They aren’t client stories, and your own circumstances may change what applies.

Scenario 01

A Lahore software house invoicing US clients through a US LLC

A small development team in Lahore works mostly for US start-ups. Clients keep asking for a US entity to contract with and a US account to pay by ACH. The founder, who has no SSN or ITIN, wants a single-member LLC.

What’s involved

  • Choosing between Wyoming and Delaware, and appointing a registered agent
  • Applying for the EIN on Form SS-4 by fax, as the online route needs an SSN or ITIN
  • A single-member operating agreement and a US bank or fintech account
  • Recording owner contributions and drawings, which are reportable on Form 5472
  • Filing a pro forma Form 1120 with Form 5472 by April 15 every year
  • Checking whether any income is effectively connected with a US trade or business, given the work is done in Pakistan

How we help

We form the LLC, obtain the EIN, set up bookkeeping that tracks every transfer between founder and company, and file Form 5472 each year. Because we also work in Pakistan, we can look at how the LLC’s income is reported on the founder’s Pakistani return.

Scenario 02

A UK e-commerce brand crossing economic nexus in several states

A UK skincare brand sells to US customers through its own online store and through Amazon, with stock held in US fulfillment centers. US sales have grown quickly, and it has not registered for sales tax in any state.

What’s involved

  • Mapping sales by state against each state’s economic nexus threshold
  • Checking physical nexus created by inventory stored in fulfillment centers
  • Separating marketplace sales, where Amazon collects as marketplace facilitator, from direct sales
  • Registering for sales tax permits in the states where nexus exists
  • Assessing past-period exposure and whether voluntary disclosure makes sense
  • Reviewing whether the US activity creates a federal income tax filing, taking the US–UK tax treaty into account

How we help

We run the nexus review, register the brand in the states that require it, and prepare returns on each state’s schedule. Where there is past exposure, we set out the options, including voluntary disclosure, before anything is filed.

Scenario 03

A Florida VoIP start-up launching its first business phone plans

A start-up is launching hosted business phone service (interconnected VoIP) for small companies in several states. It has an FCC Registration Number but no USAC filer ID, and no clear view of which taxes and fees to bill customers.

What’s involved

  • Registering with USAC on FCC Form 499-A within 30 days of starting service
  • Working out whether it is de minimis for Universal Service Fund purposes, and filing Form 499-Q if it contributes
  • Filing in the Robocall Mitigation Database and recertifying by March 1 each year
  • Filing the annual CPNI certification with the FCC
  • Registering for Florida’s Communications Services Tax, and for communications taxes and 911 fees in the other states it serves
  • Billing and remitting those taxes based on each customer’s service address

How we help

We prepare the Form 499 filings, keep the FCC certifications on a calendar, and register for and file state and local communications taxes. Licensing and other regulatory questions go to the start-up’s telecom counsel.

Scenario 04

A US consultant deciding whether an S corporation election pays

A marketing consultant in North Carolina has run a sole proprietorship for four years. Profit now well exceeds what the owner draws to live on, and self-employment tax on the full profit is a growing cost.

What’s involved

  • Forming an LLC or corporation, since a sole proprietorship cannot make the election itself
  • Filing Form 2553 within 2 months and 15 days of the start of the tax year it should cover
  • Setting a reasonable salary that stands up to IRS scrutiny
  • Running payroll: Form 941 each quarter, Form 940 and Form W-2 each year, plus state withholding and unemployment accounts
  • Filing Form 1120-S by March 15 and reporting the K-1 on the personal return
  • Comparing the tax saving with the added payroll and filing costs

How we help

We model the numbers first and say plainly if the election isn’t worth it yet. If it is, we form the LLC, file the election, help set up payroll, and prepare the 1120-S and personal return each year.

Key dates

Deadlines in the USA, month by month.

Dates are for calendar-year filers. When a federal or FCC deadline falls on a weekend or legal holiday, it generally moves to the next business day, and the IRS sometimes postpones deadlines for taxpayers in federally declared disaster areas. An extension gives more time to file, not to pay. State deadlines often differ from federal ones, and we confirm each client’s calendar when we take on the work.

  1. January

    2 deadlines
    • 15Fourth-quarter estimated taxUnited States · Individuals, sole proprietors and pass-through owners

      Final estimated tax payment for the previous year on Form 1040-ES. The other installments fall on April 15, June 15 and September 15.

    • 31Forms W-2 and 1099-NECUnited States · Businesses with employees or US contractors

      Furnish Forms W-2 to employees and file them with the Social Security Administration; furnish and file Forms 1099-NEC for contractors. For payments made from 2026, the 1099-NEC threshold is $2,000 (previously $600).

  2. March

    2 deadlines
    • 1FCC robocall and CPNI certificationsUnited States · Telecom carriers and VoIP providers

      Annual recertification of Robocall Mitigation Database filings, and the annual CPNI compliance certification, both filed with the FCC.

    • 15Partnership and S corporation returnsUnited States · Multi-member LLCs, partnerships and S corporations

      Forms 1065 and 1120-S for calendar-year entities, with Schedules K-1 to owners. Also the last day to file Form 2553 for an S corporation election to apply from January 1 of the current year.

  3. April

    3 deadlines
    • 1FCC Form 499-AUnited States · Telecom carriers and interconnected VoIP providers

      Annual Telecommunications Reporting Worksheet filed with USAC, reporting the previous calendar year’s revenue. Contributors also file Form 499-Q on February 1, May 1, August 1 and November 1.

    • 15Individual and C corporation returnsUnited States · Individuals, sole proprietors and C corporations

      Form 1040 for individuals and Form 1120 for calendar-year C corporations, plus first-quarter estimated tax. The FBAR (FinCEN Form 114) is also due, with an automatic extension to October 15.

    • 15Form 5472 for foreign-owned LLCsUnited States · Foreign-owned single-member LLCs and corporations

      A foreign-owned single-member LLC files a pro forma Form 1120 with Form 5472 attached, by fax or mail. Form 7004 extends the deadline to October 15. Corporations at least 25% foreign-owned attach Form 5472 to their own Form 1120.

  4. June

    1 deadline
    • 15Nonresident returns without US wagesUnited States · Nonresident individuals with a US filing requirement

      Form 1040-NR is due June 15 if you did not receive wages subject to US withholding; otherwise it is due April 15. Also the second-quarter estimated tax date.

  5. September

    1 deadline
    • 15Extended partnership and S corporation returnsUnited States · Multi-member LLCs, partnerships and S corporations

      Final deadline for Forms 1065 and 1120-S extended on Form 7004. Also the third-quarter estimated tax date.

  6. October

    1 deadline
    • 15Extended individual and corporate returnsUnited States · Individuals, C corporations and foreign-owned LLCs

      Final deadline for Forms 1040 and 1120, including a pro forma 1120 with Form 5472, extended on Form 4868 or Form 7004. Also the extended FBAR deadline.

Worth knowing

What we can’t do, said plainly.

Knowing a firm’s limits is as useful as knowing its services. Where something needs a lawyer, a licensed signature or an authority’s decision, we say so early.

  1. 01

    We are an accounting and tax firm, not a law firm. Contracts, investment documents, disputes and FCC licensing questions need a US attorney, and we are glad to work alongside yours.

  2. 02

    Rules differ by state and sometimes by city or county. We confirm the position in each state you operate in rather than assuming one state’s rules apply in another.

  3. 03

    We do not give immigration or visa advice. Owning a US company does not by itself give you the right to live or work in the US.

  4. 04

    Banks and payment providers make their own account decisions. We can prepare a clear, complete document pack, but we cannot guarantee that an account will be opened.

  5. 05

    IRS, state and FCC processing times are outside our control. Timings we give are typical, not promised.

Questions

United States: frequently asked.

Answers to what clients in the USA ask us most. Each service page has more detailed questions.

All FAQs

Can someone who isn’t a US citizen or resident own a US LLC or corporation?

Yes. Outside a few regulated industries, US states don’t restrict company ownership by nationality or residence, and many founders run US companies entirely from abroad. The practical differences are that the EIN application goes by fax or mail rather than online, a foreign-owned single-member LLC files Form 5472 every year, and S corporation status isn’t available.

Do I need to travel to the US to set up the company?

Usually not. Formation, the EIN application and state registrations can all be done remotely, and some fintech providers open accounts for non-resident founders online. Some traditional banks do require an in-person visit, so your choice of bank can decide whether you need to travel.

Which state should I form my company in?

If you will operate from a particular state, forming there is usually simplest, because you would otherwise have to register there as an out-of-state company as well. Founders with no US presence often choose Wyoming for its low running costs or Delaware for its corporate law and familiarity to investors. We compare annual fees, franchise taxes and reporting before you decide.

Do I need an ITIN to form a US company or get an EIN?

No. The IRS issues EINs to companies whose owners have no SSN or ITIN; the application simply goes by fax or mail instead of online. You need an ITIN only if you personally must file a US federal return, or claim certain treaty benefits, and aren’t eligible for an SSN.

What happens if my foreign-owned LLC doesn’t file Form 5472?

The IRS penalty is $25,000 per form per year, plus a further $25,000 for each 30 days the failure continues more than 90 days after an IRS notice. Almost every foreign-owned LLC has something to report, because money the owner puts in or takes out counts as a reportable transaction. If you have missed years, talk to us before filing anything so we can review the options for late filing.

Do I have to collect sales tax on sales to US customers?

Only in states where you have nexus and sell something that state taxes. Nexus comes from physical presence, such as staff or stored inventory, or from sales into the state above its economic threshold, commonly $100,000 a year at the time of writing. Most states tax physical goods but only some services, and the treatment of software and digital products varies widely.

Does my US company need to file a beneficial ownership (BOI) report with FinCEN?

Not if it was formed in the US. FinCEN’s final rule, effective August 14, 2026, made permanent the March 2025 exemption for US-formed companies and their owners. A company formed outside the US that registers to do business in a US state may still need to report within 30 days of registering.

Across borders

Working across more than one country?

Many clients have obligations in two or three of these systems at once. One team keeps them on a single calendar.

Speak with a consultant

Tell us about the US company you have, or the one you’re planning.

Pick the closest match and we’ll take it from there. You’ll get a written scope and fee before any work begins.

Or use our three-step guide, or email hello@fiscorra.com

An adviser in glasses and a white blazer listens and takes notes on a clipboard while a client in a grey jacket, seen from behind, talks with her across an office desk