Forming a U.S. LLC or C-Corporation is a major step, especially if you're an international founder. But once your formation documents come through, you might be asking: What now? There's no automatic checklist sent to your inbox. But there are a few essential actions you should take right away to stay compliant and avoid bigger headaches later.
This guide walks you through the key steps every founder should take after forming a U.S. company—including setting up financials, understanding your tax obligations, and knowing how to get help when you need it.
Understand Your Business Structure
Before doing anything else, take a moment to understand what kind of business you have. Did you form a single-member LLC? A multi-member LLC with another co-founder? Or a C-Corp for your startup? Your tax obligations, filing forms, and reporting deadlines all hinge on your chosen structure.
- Single-member LLCs are usually considered "disregarded entities" by the IRS unless you elect to be taxed as a corporation. If you’re a nonresident, this structure requires you to file Form 5472 along with a pro forma Form 1120—even if you had no income. These filings disclose information about the foreign owner and any reportable transactions with the company.
- Multi-member LLCs are generally treated as partnerships by default. You’ll need to file Form 1065, and your share of the income or loss will be passed through to the members. Each member may also be required to file a 1040-NR if they are foreign individuals.
- C-Corps are treated as separate tax-paying entities. They file Form 1120, and if the company is 25% or more foreign-owned, it must also file Form 5472. C-Corps may be subject to corporate income tax, and distributions to owners (as dividends) can trigger additional tax reporting.
Getting this part right is crucial. If you’re not sure which structure you formed, check your Articles of Incorporation (for C-Corps) or Certificate of Formation/Organization (for LLCs), and ask your formation provider or CPA to confirm your federal tax classification.
Apply for an EIN
An Employer Identification Number (EIN) is your company’s federal tax ID—basically, like a Social Security Number for your business. You can’t open a U.S. bank account, apply for certain licenses, hire employees, or file federal tax forms without it.
If you didn’t apply for an EIN when forming your business, do so directly through the IRS. If you don’t have a U.S. Social Security Number (SSN), you’ll need to submit Form SS-4 by fax, and include “foreign” written in the SSN field. It usually takes 10–15 business days to receive your EIN by fax.
Set Up a U.S. Business Bank Account
Once you have your EIN, the next step is to open a dedicated U.S. business bank account. This helps separate your business and personal finances, which is not only a best practice but often a legal requirement for preserving limited liability.
If you're not in the U.S., don't worry—many modern fintech solutions like Mercury, Relay, and Wise allow international founders to open U.S.-based accounts remotely. You'll usually need your EIN, formation documents, and passport or government ID.
Maintaining a clean bank record is key. Use this account for all business transactions, including receiving payments, paying vendors, and covering business expenses. Avoid using personal accounts for company finances.
Choose a Bookkeeping Method: Cash vs. Accrual
Right after formation is the best time to choose how your business will record income and expenses. There are two primary methods:
- Cash accounting is simpler. You record income when it hits your bank account, and expenses when you actually pay them. This method is easier to manage and often used by small businesses, consultants, or service providers. Most new founders go this route because it's easy to track and aligns with actual cash flow. In fact, the IRS generally prefers that businesses under $25 million in gross receipts use the cash method.
- Accrual accounting records income when it’s earned and expenses when they are incurred, regardless of when cash actually moves. This gives a clearer picture of business health, especially for companies with inventory, large contracts, or deferred payments.
If you’re under $27 million in annual gross receipts, you’re generally eligible to use the cash method. However, some investors or accountants may recommend accrual as your business scales. The method you choose affects how your taxes are calculated, so make sure to align with your future goals.
Begin Tracking All Income and Expenses
Don’t wait until tax season to start organizing your finances. From day one, begin logging all transactions, receipts, and business activity. Whether you use a simple spreadsheet or accounting software like QuickBooks, Xero, or Wave, maintaining accurate books will:
- Save you time and money when filing taxes
- Help you identify business trends and financial health
- Prevent compliance issues or missed deductions
Set up categories for common expenses (like software, contractors, and subscriptions) and make sure every transaction is logged and labeled consistently. Consider connecting your business bank account to your software for automated imports.
Know Your Tax Obligations
Every U.S. business—regardless of revenue or activity—must complete two major tax obligations each year:
- Federal Tax Filing with the IRS, based on your entity type. Examples include:
- Form 5472 with pro forma 1120 (foreign-owned single-member LLCs)
- Form 1065 (multi-member LLCs)
- Form 1120 (C-Corps)
- Form 5472 with pro forma 1120 (foreign-owned single-member LLCs)
- State Franchise Tax Filing in your state of incorporation. Most of our clients form in Delaware or Wyoming:
- Delaware LLCs owe a $300 flat fee each year, due by June 1.
- Delaware C-Corps file an annual report and pay tax based on shares or assets, due by March 1.
- Wyoming LLCs or C-Corps pay an annual report fee (minimum $60), due by the anniversary month of formation.
- Delaware LLCs owe a $300 flat fee each year, due by June 1.
Federal taxes are typically due March 15 for partnerships and April 15 for corporations. You can request a filing extension by submitting Form 7004 by the original due date. However, state filings cannot be extended, so those deadlines are fixed.
Failing to file on time can lead to steep penalties:
- Form 5472 penalties start at $25,000 for each late or incomplete filing.
- Form 1065 and 1120 penalties grow based on how late you file and how many partners or shareholders are involved.
It’s much easier—and cheaper—to stay compliant than to fix problems after the fact.
Consider Hiring a Tax Professional
Even if your business has no revenue yet, the complexity of U.S. tax rules means it’s smart to get professional help early. Many foreign founders assume they can delay filing until they generate income—but that’s not true. Even inactive businesses have filing requirements.
A qualified tax advisor will:
- Help you determine your correct filing forms
- Make sure deadlines are met
- Review your structure for compliance risks
- Handle communication with the IRS if issues arise
At Bookmate, we specialize in helping foreign founders of U.S. entities file accurately, avoid penalties, and stay in good standing with the IRS. We speak your language—both literally and figuratively.
Our Process at Bookmate
We’ve built a process that’s designed to be seamless, transparent, and remote from day one:
- Free consultation: We start with a short Zoom call to understand your company, structure, and any past filings (if applicable).
- Engagement & invoice: If you’re ready to move forward, we’ll send a service agreement and invoice.
- Secure onboarding: You’ll complete a digital form to upload your formation docs, EIN letter, financial records, and ownership details.
- We prepare your filings: Our team of licensed CPAs and professionals handles your 5472, 1120, 1065, or any other required forms.
- We file and support: Whether by e-file, fax, or mail, we’ll submit your return, track confirmations, and help you reply to IRS notices at no extra cost.
The entire process is remote. No printers. No mail. Just reliable, timely service from a team that gets it.
Need Help?
If you're unsure what to do next, don't guess. We’ve helped hundreds of founders get set up the right way, whether they just formed last week or are already approaching their first deadlines.
Book a free consultation, or visit trybookmate.co to learn more.
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Every business situation is different. Please consult a qualified advisor.
