The act of meeting all legal, regulatory, and tax obligations required to maintain a business’s good standing and lawful operation in the U.S.
What is Compliance?
Compliance refers to the set of ongoing legal, tax, and administrative responsibilities that a U.S. business must meet in order to remain active and in good standing. For non-U.S. residents who own U.S. companies, understanding and managing compliance is crucial—because while forming a company is straightforward, staying compliant is what keeps it legally operational and protected from penalties.
Once your LLC or Corporation is formed in the United States, compliance becomes an ongoing process that includes both state-level and federal-level obligations. At the state level, this usually involves filing annual (or biennial) reports, paying franchise or renewal taxes, and maintaining a registered agent. Each state has its own deadlines, forms, and fee structures, and missing any of them can result in late fees or even suspension of your company.
At the federal level, compliance involves filing yearly tax returns with the IRS—even if your business has no income or U.S. employees. Many international founders are surprised to learn that having “zero activity” does not exempt them from reporting. For LLCs with multiple owners, filing Form 1065 is often required; for C Corporations, it’s Form 1120. If you have generated revenue from U.S. sources or opened a bank account, additional reporting may apply. You may also need to apply for ITINs or other tax IDs depending on your ownership structure.
In addition to tax filings, compliance includes internal recordkeeping, such as keeping company ownership up to date, issuing shares (for corporations), and documenting major decisions. If you want to open a U.S. bank account, raise investment, or expand into other states, staying compliant is not optional—it’s expected.
In summary, compliance is what keeps your U.S. company alive and protected. As a non-U.S. resident, it’s easy to overlook these responsibilities, especially without a local presence or guidance. But neglecting compliance can result in tax penalties, frozen bank accounts, or even losing your company status. That’s why it’s critical to have ongoing support and systems in place to track and meet your obligations.
