As a non-resident to open a business in the US: what taxes you need to pay

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Read the previous articles of the cycle:

As a non-resident to open a business in the United States: the choice of the type of company

As a non-resident to open a business in the United States: where to register a company

So, your C-corporation is registered in the state where the best conditions for registering and conducting business activities are provided for you. Now you should focus your attention on taxes more closely.

Federal taxes

The activities of the C-corporation are regulated in accordance with subsection "C" of the United States Tax Code (Subchapter C of the Internal Revenue Code). Taxation of such corporations is carried out at the level of a company that files a declaration in the form of 1120 (Form 1120). The tax formula for a corporation is as follows:

All revenues are exceptions = gross income
- deductions = taxable income
- net operating losses - dividends received = net taxable income
multiply by tax rate
- tax credit = taxes payable.

The 1120 form is submitted no later than 15 on the day of the third month following the month when the corporation ends the tax year. That is, if your chosen tax year ends on December 31, then the form must be submitted no later than March March of the following year. The form is submitted regardless of whether the company had income or not.

Tax year corporations are determined by the corporation itself at the time of receiving the EIN or at the time of filing the first declaration This is usually a calendar year (begins on January 1 and ends on December 31) or a fiscal year (lasts 12 months and ends on the last day of the twelfth month.) consultant.

Method tax accounting corporation determined by the type of activity and its turnover. Tax accounting in the United States differs from the methods used in financial and other accounting, and is governed by tax laws. Corporations usually use the accrual method.

However, corporations that engage in farming or personal services, or have a gross income of $ 5 million or less, can use the cash method. Once a tax accounting method is selected, the corporation must follow it or obtain permission to change it by submitting the 3115 form.

If a company owes $ 500 or more tax, it needs to pay tax in advance payments. Advance payments are determined by the 1120-W form and must be paid before the 15 day of each 4, 5, and 9 month. If this day is a holiday, then the deadline is postponed to the next working day.

Local taxes

Local taxes may include: sales tax, a single local tax (Franchise Tax), as well as other taxes that depend on the type of activity of the company. Be sure to check the entire list of taxes for your state and business activities.

This material does not constitute written tax advice or legal advice. Any information from this material is not created for use by the taxpayer in order to avoid any sanctions imposed on the taxpayer, and also can not be the basis for consultation by third parties. Please always consult a professional service before taking any action based on the information from this material. Keep in mind that information may be outdated at the time of reading, and we do not undertake to guarantee the updating of information. Copyright www.Solven.pro. Xnumx

Original article published on the site Solven.pro.

See also:

Five ideas for female business from Russian immigrant women

How to open a successful small business in the United States. "Russian" stories

How Ukrainian built in the US business worth $ 250 million

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