Most foreign-owned businesses formed in the United States will need to submit their tax returns, even if there is no reportable income.

Generally speaking, if you are an LLC taxed as a partnership, you will need to submit your tax return by March 15, 2024. If you are a corporation, your tax return is due by April 15, 2024. If you are filing taxes as an individual, your personal tax return is due on the same date.

All foreign-owned businesses are required to file a Form 5472, which reports all transactions between the US entity and its foreign owners. This form is especially important since the penalties for not filing it are substantial and can incur penalties of $25,000 for every 90 days your return is late.

Apart from all applicable tax returns, you should also stay on top of the state requirements where your business is filed and operating. This can mean additional submissions like annual reports, annual franchise tax or business licenses. Each state has different requirements and deadlines for these submissions.

The United States has historically been very benevolent in terms of disclosing beneficial owners of companies. This is about to change with the new Corporate Transparency Act (CTA), which came into effect on Jan. 1, 2024. The filing requirement will affect virtually all businesses formed in the United States.

All businesses will have to file Beneficial Owner Information (BOI), which will identify any individuals or businesses with 25% or more ownership of the reporting entity and also any individuals who are filing on behalf of the entity. The report must be electronically submitted to the US Treasury’s Financial Crimes Enforcement Networks (FinCEN) by the following deadlines:

Again, this new requirement comes with penalties up to $10,000 and possible criminal charges. Even though the new CTA law adds to your responsibilities, it may help fight money laundering and terrorism financing in the long run.