If you’ve formed a U.S. C Corporation from India, staying on top of your tax filing obligations is essential to maintaining your company’s good standing and avoiding penalties. A C-Corp is considered a separate legal and taxable entity, which means the corporation itself is responsible for filing and paying U.S. taxes on its income.
This guide covers what needs to be filed at the federal and state levels, with a focus on Delaware and Wyoming, and how Bookmate can support you with U.S. tax compliance.
Understanding Corporate Tax Filing Requirements
C Corporations in the United States are required to file Form 1120 with the IRS each year. This corporate income tax return reports your company’s gross income, deductions, and tax liability. The federal corporate tax rate is 21%. Even if your C-Corp has no income or is operating at a loss, you are still required to file Form 1120 annually.
If your company has U.S. employees or contractors, you may also have employment tax or 1099 reporting obligations, even if your owners reside abroad.
State Franchise Tax Obligations: Delaware and Wyoming
In addition to federal taxes, your C-Corp must also file and pay state-level franchise taxes. Delaware requires all corporations to pay an annual franchise tax and file an annual report. The tax is based on your company’s authorized shares or assumed par value capital, whichever results in a lower tax.
The minimum payment is $225, but companies with a large number of authorized shares can owe thousands. The report and tax payment are due by March 1 each year.
Wyoming offers a simpler model. Corporations there must file an annual report and pay a license tax, which is based on assets located in Wyoming. The minimum fee is $60, and the report is due on the first day of your incorporation anniversary month.
Your registered agent plays a key role in keeping your company compliant. They typically send reminders for state filings, receive important legal documents, and in many cases can assist or file your annual reports for a fee. Keeping communication lines open with your registered agent helps ensure you never miss a deadline.
Filing Federal Taxes and How Bookmate Helps
Filing taxes for a C-Corp from India can feel daunting, but Bookmate is here to make the process straightforward. We help Indian founders navigate U.S. corporate tax filing by preparing and filing Form 1120, calculating your tax liability, and advising on potential dividend distributions and withholding.
Our process includes five clear steps designed to make U.S. corporate tax filing manageable, even if you're operating from halfway across the world in India.
We begin with a free consultation over Zoom where we take time to understand your company’s setup, activity, and specific filing needs. During this conversation, we’ll identify what forms are required and answer any initial questions you may have.
Next, we’ll send you an invoice and a formal engagement letter outlining the scope of our services. This ensures you know exactly what to expect and gives us the green light to move forward.
Once you’ve signed the engagement letter, we’ll send you a secure web form designed to gather all the necessary information for your tax filing. This includes financial details, your EIN, business activities, and any relevant documents from your U.S. incorporation.
After reviewing your submission, our team of tax professionals will prepare the appropriate forms, such as Form 1120. We’ll verify the accuracy of your financial data and ensure it’s reported in accordance with IRS standards.
Finally, we handle the filing for you—whether that’s through e-filing, mailing, or faxing to the IRS, depending on the method required. If the IRS later sends a notice or requests clarification related to a return we helped prepare, we assist you in crafting and submitting the appropriate response to resolve the matter efficiently.
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Each tax situation is unique. Please consult Bookmate or a qualified advisor.
