What Should NC Corporations Be Doing Now?

A corporation is a separate legal entity from its owners that keeps the owners’ other assets separate from the corporation – if the corporation is properly run.

What does it mean to properly run a corporation?

1. You should have prepared and sent W-2s to employees and 1099s to contractors or vendors by January 31.

2. The Corporation must file annual reports with the NC Secretary of State, at the same time it files its corporate tax return (usually March 15). Many corporate owners now e-file their taxes and forget to file their annual report. To file your annual report, click here, and type in your corporation’s name. NOTE that a notice is being sent to NC corporations by the “Division of Corporate Services” offering to file corporate documents for $150. Remember, you don’t need to file when and where you had your annual meeting, bylaws or shareholders agreements changes to these documents’ lists of shareholders or other corporate actions taken.

3. The Corporation must file a tax return, even if there is only one shareholder. It may not need to pay any taxes, but all corporations need to file informational returns. For more information, click here or contact a CPA. Remember, owners of an S-corp. must take a reasonable salary before paying tax-advantageous distributions of profit.

4. The Corporation must hold annual meetings of shareholders and should have an annual meeting of directors. If your corporate documents require annual valuations of the company, this would be a good time to set the current valuation and review the year. If you have questions, talk to your business attorney.