United States
We form US companies for founders and groups based in India, keep their books, and prepare their federal and state returns, sales tax returns and payroll filings. Clients can sign with FidGenX Advisors Inc., our Delaware company. The work is done by our team in India.
Checked against the sources on 14 November 2026. Each figure links to the authority that published it.
United States at a glance
- Federal corporate income tax
- 21% of taxable income. States charge their own taxes as well1
- Federal return
- Form 1120, due on the 15th day of the fourth month after the tax year ends. That is 15 April for a calendar year2
- Estimated tax
- Four instalments a year, when the corporation expects to owe $500 or more1
- Foreign-owned companies
- Form 5472 every year. The penalty for not filing is $25,0003
- Delaware corporations
- Annual report and franchise tax by 1 March4
- Delaware LLCs
- Annual tax of $400 by 1 June5
- Payroll
- Form 941 every quarter. Form 940 and Forms W-2 by 31 January6
- Authorities
- The Internal Revenue Service for federal tax, and the Secretary of State and tax department of each state
Checked against the sources on 14 November 2026.
What we do in the United States
- Form the corporation or LLC, usually in Delaware, and obtain its employer identification number
- Keep the books in QuickBooks, Xero or NetSuite
- Prepare the federal return on Form 1120, with Forms 5472 and 5471 where they apply
- Work out which states the company has to file in, and prepare those state income and franchise tax returns
- Register for sales tax and prepare the returns
- Register for payroll taxes and prepare Forms 940 and 941, and Forms 1099
- Prepare entity classification elections, and the relief request when one was filed late
- Prepare the ODI and APR filings in India when the shareholder is Indian
What a US corporation files each year
| Filing | With | When |
|---|---|---|
| Federal income tax return (Form 1120) | IRS | The 15th day of the fourth month after the tax year ends. A corporation whose year ends on 30 June files by the 15th day of the third month. Form 7004 extends the time to file.2 |
| Estimated tax | IRS | The 15th day of the fourth, sixth, ninth and twelfth months of the tax year, when the corporation expects to owe $500 or more.1 |
| Form 5472 | IRS | Attached to Form 1120. It applies to a US corporation that is at least 25% foreign-owned and had reportable transactions with a related party.3 |
| Annual report and franchise tax, Delaware corporations | Delaware Division of Corporations | 1 March. The report fee is $50. The minimum tax is $175 under the authorised shares method and $400 under the assumed par value capital method.4 |
| Annual tax, Delaware LLCs, LPs and GPs | Delaware Division of Corporations | 1 June. The tax is $400 and no annual report is filed.5 |
| Payroll returns | IRS | Form 941 by 30 April, 31 July, 31 October and 31 January. Form 940 and Forms W-2 by 31 January.6 |
Companies owned from India
A US corporation that is at least 25% foreign-owned reports its transactions with the foreign owner and other related parties on Form 5472. A US LLC with a single foreign owner has the same duty. It files a pro forma Form 1120 with Form 5472 attached, by fax or by post and not electronically. The penalty for failing to file is $25,000.3
A federal return filed more than 60 days late carries a minimum penalty. For returns due in 2026 it is the smaller of the tax due or $525.2
A Delaware corporation that files its annual report late pays a penalty of $200, and interest of 1.5% a month on the tax and the penalty.4
Three notes go further: what a US company owned from India files in both countries, which US states can tax it and what to do before the first US salary.
If the shareholder is in India
India treats the shares of a US company held by an Indian company or resident as an overseas direct investment. Your bank needs Form FC before the first remittance, and an Annual Performance Report (APR) is due by 31 December every year.7, 8
The APR is based on audited financial statements. The only exception is an investor who does not control the company, in a country that does not require an audit.8 A subsidiary controlled from India therefore needs its accounts audited for the APR. Plan that audit with the year-end close.
The Indian steps are set out on our page for Indian businesses with a company abroad.
Questions we are asked
Our Delaware company did no business this year. Is anything due?
Yes. Every corporation incorporated in Delaware files an annual report and pays franchise tax by 1 March.4 A domestic corporation also files Form 1120 whether or not it has taxable income.2
How much is the yearly tax on a Delaware LLC?
$400, due by 1 June. An LLC does not file an annual report. A late payment carries a $200 penalty and interest of 1.5% a month.5
Can an LLC with one Indian owner skip the federal filing?
No. It files a pro forma Form 1120 with Form 5472 attached for any year in which it had reportable transactions with its owner, and the $25,000 penalty applies to it as well.3
Sources
- Internal Revenue Service, Publication 542, Corporations.
- Internal Revenue Service, Instructions for Form 1120.
- Internal Revenue Service, Instructions for Form 5472.
- Delaware Division of Corporations, Annual report and tax instructions.
- Delaware Division of Corporations, LLC, LP and GP franchise tax instructions.
- Internal Revenue Service, Employment tax due dates.
- Reserve Bank of India, Foreign Exchange Management (Overseas Investment) Directions, 2022. A.P. (DIR Series) Circular No. 12, 22 August 2022.
- Reserve Bank of India, Foreign Exchange Management (Overseas Investment) Regulations, 2022. Notification No. FEMA 400/2022-RB, 22 August 2022.