You must pay close attention to these obligations, of course, you can count on us to help you with!
After successfully completing the formation registration of your company, it is essential to understand your responsibilities to both the IRS and the state in order to comply with regulations in the United States.
IMPORTANT NOTICE: As a “Registered Agent” for your company, Globalfy should notify all its clients of their obligations to the state of their incorporation. However, we are not responsible for the acceptance, payment, and execution of the necessary processes.
1️⃣ MONTHLY.
Initially, opening your business does not bring you any monthly obligations to the state or IRS. However, we recommend that you verify the obligations that may exist through other licenses or processes that you have done in parallel.
You will receive an invoice if you have selected a monthly plan. If you have provided authorization for credit card payments, the amount will be automatically charged to your card.
2️⃣ QUARTERLY
2.1) SALES TAX
Sales Tax is a tax paid by the customer when buying consumer goods. It varies by state.
For example, if you sell an item for $100 to a customer and you need to pay 7% Sales Tax, you would charge the customer $107 for the product and pay the $7 to the state.
When deciding whether to charge Sales Tax to a customer, there are three key factors related to their NEXUS that you should take into account.:
1) State of Registration of your Company: If your company is registered in Florida, for example, you must charge Sales Tax to all customers who have an address in the state. The state of Delaware does not charge Sales Tax.
2) Physical Presence in the State: If you use a warehouse in California, for example, even if your company is from Florida, you will have to collect Sales Tax for sales from customers located in California.
3) Economic Activity: After July 2018, the states instituted the Economic Nexus, where depending on the volume of transactions you have for a given state in 12 months, you need to collect Sales Tax in that state, too.
4) Sell Physical Products.
Contact us if you want to hire our Sales Tax registration support!
Once issued, which typically takes around 15 days, your company will be responsible for calculating, reporting, and remitting the sales tax collected from customers to the state on a monthly or quarterly basis. Please note that these reports must be submitted even if no sales tax has been collected during the period.
Additionally, it’s essential to have reliable sales management software, such as Shopify or Xero, and maintain proper control of your company’s inventory.
For these reports, we recommend using TaxJar, a software that integrates seamlessly with platforms like Amazon, eBay, and Shopify. It automates sales tax calculations and submissions, all for just $19 per month.
If your Sales Tax permit is issued on a general basis, the reports and tax returns must be submitted to the state quarterly, on the following dates: April 19, July 19, October 19, and January 19.
2.2) WITHHOLDING AND ESTIMATE TAX
In the United States, the income tax return is annual, made at the beginning of the following fiscal year, but taxes must be collected quarterly throughout the taxable year.
Withholding or Estimated Tax Payments are not additional taxes. Instead, they serve as a guarantee to ensure that, at the end of the tax year, you can file your tax return and either pay any outstanding balance or receive a refund if you’ve overpaid.
Companies that have our bookkeeping service can receive support from our team regarding this obligation to the IRS.
3️⃣ ANNUALS
3.1) ANNUAL REPORT / FRANCHISE TAX
States require businesses to submit an Annual Report each year to maintain their good standing. The fee associated with this renewal varies based on the specific state in which your company is registered.
Failure to complete the renewal within the specified timeframe may result in a penalty, and your company cannot do business until this requirement is fulfilled.
DUE DATES
Florida - May 1st
Wyoming - The first day of the month that marks the anniversary of your company's formation
New Mexico - 15th day before 3rd month after fiscal year end (only CORPs)
Delaware - June 1 (LLC) March 1 (CORP)
Texas - May 15
If you require our assistance with the annual report, please ensure that you hire our services days before the due date. This will allow us sufficient time to complete the necessary work promptly and avoid penalties.
3.2) INCOME TAX
You are required to file an income tax return annually; however, the specific forms you need to submit to the IRS will depend on various circumstances related to your business.
For more information about these scenarios, follow this article:
https://help.globalfy.com/help-center/does-my-company-need-to-present-taxes-this-year