How do U.S. companies file tax returns?

The accounts of American companies need to be processed by a certified public accountant recognized by the United States. It is recommended to find a professional agency to entrust the tax treatment of the American company.

Generally speaking, as long as a company conducts business operations in the United States and incurs operating expenses, it must make accounts, file taxes, and pay taxes based on actual accounts.

However, if the company does not operate in the United States and does not have trade with the United States, it does not need to do accounting and pay taxes, but it still needs to file a tax return (ie zero declaration).

Key points of U.S. company tax filing:

1. Taxes involved

In addition, the taxation of U.S. companies is more complicated and needs to be determined according to the state of registration. Each U.S. company needs to file a tax declaration with the IRS (Internal Revenue Service) and the state taxation office. However, some states do not have state taxes, some states only levy fixed commercial taxes, and some states need to calculate and declare taxes based on actual operating income.

2. Tax declaration time

The tax year of a U.S. company can be determined by the company registrant according to the natural year boundary or the company's annual boundary. However, no matter which tax year demarcation method is selected, it cannot be changed arbitrarily once it has been selected. The company needs to file a tax declaration within two and a half months after the end of the tax year. If the tax time is overdue, a late payment fee shall be charged at a rate of 5‰ per day.

3. Tax rate

U.S. company taxes are levied in an excessively progressive manner. The general federal income tax rate is 15%-30%, and the state income tax rate is 0-10%. However, income obtained by a foreign company in the United States that is not directly related to industrial and commercial operations needs to be withheld by the paying company at the 30% tax rate (and no declaration and settlement will be processed).

 

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