Practical overview
Facts checked against the official sources listed below on 6 August 2026. Rules depend on facts, tax residence, management, business model and target markets.
Annual compliance
A company must remain compliant after incorporation. The normal calendar should consider:
- bookkeeping and retention of invoices, contracts and bank records
- corporate income-tax or information returns
- state annual or biennial reports
- franchise, privilege or business-licence tax
- VAT, GST or sales-tax returns when registered
- payroll, social-security and employer filings
- renewal of the registered office, agent or secretary
- beneficial-owner and officer updates
Missing a nil return, annual fee or information filing can cause penalties, loss of good standing, involuntary strike-off or banking problems even where no corporate tax is payable.
Core corporate requirements
Before filing, the structure should account for the following recurring legal and operational requirements:
- a local registered office or registered address
- a licensed registered agent or local service provider
- proper accounting records and supporting documents
- tax registration and returns based on activity
- accurate beneficial-owner filings and updates
- state annual or biennial reports
- payroll and employer registrations before hiring
Tax framework
A domestic C corporation generally pays 21% federal corporate income tax plus applicable state and local taxes. An LLC may be treated as disregarded, partnership or corporation depending on ownership and elections; that classification does not mean “no tax and no reporting”. A foreign-owned U.S. disregarded entity can have Form 5472 with a pro-forma Form 1120 reporting even where no ordinary federal income tax is due. State annual reports, franchise taxes, sales-tax nexus, payroll and foreign qualification vary by state.
Owner-country tax warning
Incorporating abroad does not move the owner’s personal tax residence and does not by itself prevent CFC, permanent-establishment or management-and-control rules. Salary, dividends, royalties, shareholder loans and related-party charges need separate analysis in the owner’s and operating countries.
First-year and recurring cost
Our formation package from €5,000 includes formation coordination, standard corporate documents, a registered address or registered agent for the first year, tax-number coordination and the agreed standard first-year corporate and tax filings. Government fees, mandatory capital, audit, licences, local directors, notarisation, apostille, translations and enhanced substance are quoted separately where required.
The fixed website price is a professional-service starting point, not a universal all-inclusive government price. We issue a written budget separating government fees, professional work, third-party costs, capital, first-year compliance and recurring annual costs.
| Cost component | Typical scope |
|---|---|
| Government and registry fees | Usually separate |
| Professional formation work | Included or quoted |
| Registered address, agent or secretary | Included or quoted |
| Tax registrations and standard first-year filings | Included or quoted |
| Bookkeeping, annual accounts and returns | Usually separate |
| Optional banking-readiness package | Usually separate |
| Optional licensing, audit and enhanced substance | Usually separate |
Unless expressly included in the proposal, mandatory capital, government fees, audit, licence fees, local staff or directors, physical premises, notarisation, apostille, certified translation, merchant acquiring and third-party bank charges are separate.
Key risks and limitations
The decision should be based on the complete risk picture, including:
- state, provincial or local nexus can create sales-tax obligations
- operations in another state or country can require foreign qualification
- CFC and owner-country anti-deferral rules
- permanent-establishment exposure where staff, agents or management operate
- payroll, social-security and employer filings
- ownership or officer information may be publicly accessible
- fixed annual fees apply even where taxable profit is low or nil
Official sources
- IRS — corporate tax rate and Form 1120
- IRS — Instructions for Form 5472
- U.S. Small Business Administration — register your business
Official links are provided for verification. Where a source changes after the review date, the newer official rule prevails.
Frequently asked questions
Can a non-resident own the company?
Foreign ownership is usually possible subject to the entity type, sector, sanctions screening and any local-director or approval rules described on this page.
Does incorporation guarantee a bank account?
No. Banks and EMIs perform independent KYC, risk and commercial reviews. We improve application readiness and coordinate responses.
Will the company automatically pay zero tax?
No. Corporate tax, owner-country tax, CFC rules, permanent establishment, withholding, VAT/GST and management-and-control rules must be analysed together.
Is an address included in the formation package?
The agreed first-year formation package includes a registered address or registered agent where legally available. A staffed office, desk, warehouse or additional substance is separate.
Do I need a local director or secretary?
It depends on the jurisdiction and entity. The local requirements section identifies the standard rule; regulated activity may impose more governance.
What annual filings are required?
Typically bookkeeping, annual returns, accounts, corporate tax filings, VAT/GST or payroll filings, UBO updates and renewals may apply.
Can beneficial ownership be hidden?
No. Registries, banks, tax authorities and regulated providers require accurate beneficial-owner and source-of-funds information.
Can one licence cover customers worldwide?
No. A licence is jurisdiction- and activity-specific. Customer countries, advertising, payments and consumer rules need a separate market-by-market review.