U.S. Corporate Income Tax
All domestic Corporate taxpayers in the United States must file an annual income tax return (Form 1120) by the 15th day of the fourth month following its tax year-end. A foreign corporation which is not incorporated in the United States however doing business in the United States or deriving income from the United States must also file an annual income tax return (Form 1120F) by the 5th day of the fourth month following its tax year-end. Most of the states in the United States are also require a domestic or a foreign corporation doing business in the states must also file an annual tax return.
Anywhere in the world, Corporate income tax is complex. It is further complex when the corporation is involved in a cross-border transactions. On top of that the emergence of digital economy and online sellers have put further put challenges for which tax authorities are yet to provide a clear interpretation of any tax rules or tax treaties. Another challenges are faced by the tax regulators when the taxpayer is dealing with a decentralized currency, like cryptos. As a tax professional standing between the tax regulators and as an advocate of our client, we always put our best efforts in favor of our clients.
At RKB with our comprehensive cross-border taxation knowledge and experience allows, us to review your taxation issues from all perspectives. We design, Implement, and guide you with the most tax-advantageous strategies for both sides of the borders. If you are incorporated in the United States or in Canada, or in another country of the world and doing business in the US as a foreign corporation, you may have to deal with the many taxation issues which includes double taxation, tax treaty benefits, withholding tax, foreign tax credits, and other reporting obligations like FACTA, in which we are specialized. With our specialized US tax services, you can rest worry-free and leave all the burden on us.
You need to pay attention to:
Corporate tax planning
There are a few common areas that we always pay attention, before preparing your tax return and before filing a return with IRS:
Taxation of Domestic Corporation in the USA
All US corporation is taxed on an annual basis. The corporation may choose a tax year that is different from the calendar year. The new corporation may use a short tax year for its first tax period.
Corporate tax return
Note: You may have a small business tax fining under the sole-proprietorship or a corporation. However, the tax filing requirement is completely different. Under the sole proprietorship, you do not need to file a balance sheet of your business, while under the corporate income tax, a balance sheet of the corporation is compulsory.
Taxation of Foreign Corporations in the USA
A Canadian corporation may have to file (1120-F) and pay taxes in the US if they have income from a trade or business in the US. Similarly, Canada’s domestic tax laws require a non-resident to file and pay tax on any income they earn from carrying on a business in Canada.
This requires a detailed review of all your business connections, and you may be able to avail yourself of the treaty benefits.
Taxation of LLC in the USA
A Limited Liability Company (LLC) in the USA is an entity created by law. A standard LLC must have one member. LLCs that choose to be taxed as S Corporation has a limit of 100 members. Some states do not allow a minor to be a member of an LLC. Individuals, corporations, and other LLCs are permitted to be LLC members, and there are no citizenship or residency requirements.
US tax and business advisory
You may also be under the filing and compliance requirements for:
We are an authorized IRS e-file service provider who can file your corporate tax returns electronically for faster processing. We file corporate income taxes for our clients in all of the states of the U.S. Our virtual and cloud-based U.S. tax filing services are available where ever you are.