Stay in good standing. Every year.

Yes. If your LLC is foreign-owned, you are required to file Form 5472 (plus a "dummy" Form 1120) even if the company had zero revenue. This is a reporting requirement, not just a tax payment. Missing it carries a $25,000 automatic penalty per form, regardless of income. There are no exceptions for inactive companies.

A federal return is filed with the IRS and covers your income at the national level. A state return is filed separately with the state(s) where your business has "nexus", meaning where it has a physical presence, employees, or meets revenue thresholds for economic nexus. Most businesses need both. If your company is registered in Delaware but operates or earns revenue in California or New York, you'll likely owe a state return in those states too.

Form 5472 is an IRS information return required for any US LLC or corporation that is 25% or more owned by a foreign person or entity. It reports transactions between the US company and its foreign owners or related parties. It is filed alongside a Form 1120 (even if the LLC would not otherwise file a 1120). The penalty for failing to file is $25,000 per form, and the IRS is actively enforcing this, particularly for foreign-owned single-member LLCs.

Most states with a corporate or pass-through income tax require a state return if your business has nexus there. This includes California (minimum $800 franchise tax regardless of income), New York, Texas (franchise tax), and many others. States with no income tax, like Wyoming, Nevada and South Dakota, generally don't require a state income tax return. We'll confirm which states apply to your situation before filing.

We'll send you a simple intake checklist, but at a minimum we'll need your company's EIN, bank statements and transaction records for the year, any invoices, receipts or records of income and expenses, your ownership structure (who owns what percentage), and a passport copy for foreign-owned entities filing Form 5472. If you're unsure what to pull together, start with a tax consultation and we'll walk you through it.

Yes. The IRS allows automatic 6-month extensions for most business returns (Form 7004). This pushes your C-Corp deadline to October 15 and your partnership or multi-member LLC deadline to September 15. However, an extension to file is not an extension to pay: any tax owed is still due on the original deadline, and interest accrues on unpaid amounts. We can file the extension on your behalf if needed.

Yes. Every Delaware company is legally required to have a registered agent with a physical address in Delaware. The registered agent receives official legal and government correspondence on your behalf.

Delaware automatically voids corporations that miss franchise tax deadlines and cancels LLCs that skip annual tax payments. Reinstating a voided entity takes 2–6 weeks and costs significantly more than staying current.