FML’s Tax Checklist for C-Corporation Start-Ups

By Justin Wilcox, CPA, Partner, Tax & Advisory Services
Sep 09, 2019

Part I – Pre-Filing Action Items (should be taken care of ASAP when forming your Start-Up)

  1. See attorney – Incorporate in Delaware (or other jurisdiction as advised by your attorney).
  2. See attorney – Register with CT Secretary of State as a foreign corporation (if not incorporated in CT).  
  3. Obtain a U.S. Federal Employer Identification Number (EIN).
  4. Obtain a business bank account to track business expenses separately (bring EIN confirm letter and legal formation docs)
  5. Register for Corporation tax with CT Department of Revenue Services (DRS).
    Warning – Be careful regarding registering for sales/use tax or withholding tax – you can always add these later when you have CT sales, out of state purchases or begin processing CT payroll.
  6. Set up your CT DRS Online Account using your CT Tax Reg. number and the PIN number the CT DRS sends in the mail.

Part II – Tax Filing Due Date Listing (Filed in 2020 to report activity for Calendar Year 2019)

  1. Form 1099-MISC – Two filings to both recipients and IRS, first due date is January 31, 2020 (To report payments the corporation made in 2019 to a “recipient” typically for services or rent – i.e. contractor, lessor, attorney, CPA, etc.)
  2. Delaware Annual Report – Due March 1, 2020 (List of officers/directors, franchise tax calculation.)
  3. Federal C-Corporation Income Tax Return – Form 1120 – Due April 15, 2020  (You will need to file on 2019 forms)
  4. Connecticut Corporation Income Tax Return – Form CT 1120 – Due May 15, 2020 (You will need to file on 2019 forms)
  5. Connecticut Annual Report – Secretary of State  (List of officers/directors)

Part III – Other Common Tax Filings – Review periodically (list is not all inclusive)

  1. Connecticut Sales Tax – Revenue:  When you expect to have sales to CT customers, filing frequency could be as common as monthly.
  2. Connecticut Sales/Use Tax – Purchases: If you purchase products online/out of CT without sales tax charged equal to the CT sales tax rate, you may be subject to Use tax liability in CT. See link above.
  3. Federal and Connecticut Payroll tax filings: This reporting applies if you set up U.S. payroll (typically the Federal and State payroll tax filings are handled internally using payroll processing software, or through a 3rd party payroll provider).
  4. Profitable Entities or Funded Loss Companies:  Estimate are due to the IRS and State of CT quarterly. CT asset based franchise tax estimates ay apply if your Company raised equity capital, even if your corporation generates tax losses.
  5. Property Tax – If spending significantly on furniture/equipment, consider the applicable property tax rules and contact your town.