What annual filings do I need to keep track of?

Takeaway: There are a few important annual filings you (or your lawyer/accountant) need to keep track of. Your lawyer/accountant/payroll provider will generally handle most of these for you but you should also keep an eye on them.

Startups are required to file a variety of annual reports and other documents in order to comply with federal and state regulations, maintain good standing, and stay on top of their financial and legal obligations. Here are some of the key annual filings that startups need to keep track of.

Annual Report

Many states require corporations and LLCs to file an annual report that provides updated information about the company, such as its address, directors and officers, and business activities. For Delaware corporations, this is typically due on March 1.

Federal Income Tax Return

All corporations and LLCs are required to file a federal income tax return each year, even if the company did not generate any income during the tax year. For corporations, this is typically due on April 18.

State Income Tax Return

Most states also require corporations and LLCs to file a state income tax return, even if the company did not generate any income in the state. State tax filing deadlines vary state to state. Startups should engage an experienced accounting firm to ensure they comply with state filing requirements.

Sales Tax Return

If the startup sells products or services that are subject to sales tax, the company may be required to file periodic sales tax returns with the relevant state tax authority.

Annual Franchise Tax

Many states impose an annual franchise tax on corporations and LLCs, which is calculated based on the company's assets, income, or other factors. For Delaware corporations, this is typically due on March 1.

Form 1099

If the startup hires independent contractors or pays other businesses for services, the company may be required to file Form 1099 with the IRS and the payee. Companies are generally required to distribute 1099s to counterparties by January 31 and to file the 1099s with the IRS by March 31.

Conclusion

Keeping track of these annual filings can be a daunting task for startups, especially as the company grows and expands its operations. It's important to work with a qualified accountant or attorney who can help the startup stay on top of these requirements and avoid costly penalties or legal issues. Kruze Consulting offers a tax deadline calendar that can be subscribed to - I recommend this as an easy way to stay apprised of upcoming deadlines. By staying organized and proactive about their annual filings, startups can ensure that they remain compliant and focused on building a successful business.