It's very important that you pay close attention to it, of course, you can count on us to help you with these obligations!
Once the business formation or the registration of your company is completed; there are some responsibilities that you will have to render to the IRS and the State in order for the company to comply with the regulations in the United States.
IMPORTANT NOTICE: As a “Registered Agent” for your company, it's Globalfy's obligation to notify all of 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 obligations to the state or IRS that are monthly. However, we recommend that you verify the obligations that may exist through other licenses or processes that you have done in parallel.
You will also receive your invoice regarding the monthly services contracted with us. In case we have your credit card authorization, the debit will be made automatically.
2️⃣ QUARTERLY
2.1) SALES TAX
Sales Tax is a tax paid by the customer when buying consumer goods. This tax varies according to 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.
There are 3 factors you should consider when determining whether or not to charge the Sales Tax to a customer based on their NEXUS:
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!
After issuing it, which takes around 15 days, your company will have the obligation to calculate, report, and pass on monthly or quarterly to the state the amount collected from the customer as sales tax, and the reports must be done even if there has been no collection. In addition, you need to have sales management software such as Shopify or Xero and control your company's inventory.
For these reports, we indicate the Taxjar software that integrates with your account on Amazon, eBay, Shopify, etc. Does all Sales Tax calculation and delivery for just $19 monthly.
If you issued your Sales Tax on a general basis, the report, and tax return collected must be submitted to the state every quarter: 19-April, 19-July, 19-October, and 19-January.
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 the collection of taxes must be made on a quarterly basis throughout the taxable year.
The Withholding / Estimated Tax Payments is not an additional tax. It functions as a guarantee that at the end of a tax year, you will file your tax return and pay the value due or receive a refund of what you have 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
The states request that annually you make a renewal, called an Annual Report. This renewal has a value that varies depending on the state where your company is registered.
If the renewal is not done during the established period, you will have to pay a fine; and until this obligation is not regularized, your company will be unable to do business.
3.2) INCOME TAX
Tax on the annual income of the company and as a natural person, which must be declared between January 1 and mid-March of each year (the date is variable).
For more information about these responsibilities, here you will find an article from our free blog where our specialists provide information on the subject:
https://globalfy.com/blog/how-business-taxes-in-the-united-states-work-2/