If you’ve incorporated in Delaware or another U.S. state and haven’t filed your corporate tax return yet – you’re already on the clock. We handle IRS-compliant Form 1120 filing for NRP founders and Pakistani-owned U.S. entities, including nil returns.
Founder Review
“I had incorporated my Delaware C-corp two years ago and never filed. They handled everything, dealt with the IRS, and my Mercury account is clean now.”
Here’s something that happens more than you’d think. A Pakistani founder sets up a Delaware C-corp, connects it to Stripe, opens a Mercury account, and gets to work. Months pass. Sometimes a whole year. Nobody tells them they were supposed to file a U.S. corporate tax return – especially not when the company hasn’t made a single dollar yet.
“The IRS doesn’t see it that way.”
If any of the following sounds familiar, keep reading – because the stakes are real:
“I registered my Delaware C-corp but haven’t launched yet, so I probably don’t need to file anything”
“My company made no money last year, so there’s nothing to report”
“I paid someone locally to handle this but honestly I’m not sure it was done right”
“I got something from the IRS in the mail and I have no idea what it means”
“My Stripe or Mercury account got flagged and I don’t know why”
When a U.S. corporation’s tax record goes quiet, it sends a compliance signal that U.S. financial institutions – including the banks and payment processors your business depends on – take seriously. A blocked Mercury or Stripe account isn’t just an inconvenience. For NRP founders running remote businesses, it can stop operations completely.
IRS penalties compounding monthly – even on nil returns
$25,000 Form 5472 penalty per violation for foreign-owned entities
Mercury or Stripe account suspension or freeze
Weakened corporate standing for future investors
Lost startup loss deductions that can never be recovered
VC due diligence failures – returns are among the first items requested
We keep your U.S. presence clean, compliant, and ready for whatever comes next. Beyond the penalty itself, non-compliance weakens your corporate standing and puts your entire U.S. banking setup at risk.
Form 1120 is the annual federal tax return filed by U.S. C-corporations with the IRS. It reports the company’s income, losses, deductions, and credits for the tax year. Foreign founders who own a U.S. C-corp – including Delaware corporations – are required to file this return every year, regardless of whether the company generated any revenue.
Think of Form 1120 as your company’s annual check-in with the U.S. government. Every C-corporation registered in the U.S. submits this form each year – reporting what the business earned, spent, and owes in federal taxes. It also covers your EIN, your accounting method, and shareholder details.
When a VC firm runs due diligence on your startup, these returns are among the first things they’ll ask for. For Pakistani founders and Non-Resident Pakistanis who’ve incorporated in the U.S., this is a legal obligation – whether you’re pre-revenue, actively trading, or somewhere in the middle.
Depending on your company’s size and activity, the return may need supporting schedules too. Schedule M-2 tracks undistributed earnings. Schedule M-3 reconciles your financial accounting with your tax accounting. Form 4562 handles depreciation. A lot of low-cost filing services skip Form 5472 entirely.
What’s on this return affects your company’s standing with the IRS, your U.S. bank accounts, and your relationships with payment processors like Stripe and PayPal.
Form 1120 is a federal filing. Delaware’s annual franchise tax is a completely separate state-level requirement. A lot of founders assume they’re the same thing – they’re not.
Two separate obligationsIf your company is 25% or more foreign-owned, you may need to file Form 5472 alongside your Form 1120. Missing it carries a separate $25,000 penalty per violation.
$25,000 per violation| Entity Type | Form to File |
|---|---|
| U.S. C-Corporation | Form 1120 |
| S-Corporation | Form 1120-S |
| Partnership or Multi-Member LLC | Form 1065 |
| LLC taxed as a C-Corp | Form 1120 |
| 25%+ Foreign-Owned C-Corp | Form 1120 + Form 5472 |
“The short answer: if you own a U.S. C-corporation, you file Form 1120. Full stop.”
But let’s get specific, because this is where a lot of NRP founders get tripped up. Here are the scenarios that apply directly to Pakistani founders and Non-Resident Pakistanis:
You registered a Delaware C-corp while living in Karachi. You must file Form 1120.
Must FileYour company made no sales last year. You still need to file a nil return.
Must FileYou hold shares in a U.S. entity but aren’t a U.S. citizen or resident. You must file.
Must FileYour LLC has elected C-corp tax treatment with the IRS. You must file Form 1120.
Must FileYou’re based outside the U.S. and running a U.S. entity remotely. You must file.
Must FileYour company is 25% or more foreign-owned. You must file Form 1120 and most likely Form 5472 as well.
Must File + Form 5472The U.S. and Pakistani tax systems operate independently. Filing Form 1120 with the IRS doesn’t automatically create a tax event in Pakistan or trigger an FBR audit. What it does do is build a clean compliance record that foreign investors and VCs will want to see when they look at your company. Where you physically live has no bearing on your U.S. corporation’s annual filing obligation. Whether you’re in Karachi, Dubai, or Riyadh, the requirement is the same.
When in doubt – file. The cost of filing is always lower than the cost of not filing.
For most U.S. corporations, the deadline is April 15. That’s for calendar-year corporations – companies whose tax year runs January 1 through December 31, which is the majority of Delaware C-corps.
The standard filing deadline for calendar-year corporations whose tax year runs January 1 through December 31. This applies to the vast majority of Delaware C-corps.
Standard deadlineFile Form 7004 for an automatic six-month extension. No approval needed – the IRS grants it automatically. This pushes your deadline from April 15 to October 15.
File Form 7004 to extendIf your company runs on a fiscal year instead, the deadline falls on the 15th day of the fourth month after your fiscal year ends. Different from the standard April 15 date.
Check your fiscal year endYou can file Form 7004 for an automatic six-month extension. No approval needed – the IRS grants it automatically. This pushes your deadline from April 15 to October 15.
But here’s what a lot of founders miss: the extension is for filing, not for paying. If your company owes any estimated taxes, those are still due by April 15. Form 7004 doesn’t move that date.
Important: Filing late is always better than not filing at all. Penalties add up over time, so the sooner you move, the less damage there is to deal with. If you’re reading this after April 15 has already passed – don’t panic. We can still help.
Penalties apply from the original due date and compound monthly. There is no grace period.
| Situation | Penalty | Severity |
|---|---|---|
| Nil return filed late (no tax owed) | $210+ per month per shareholder, up to 12 months | High |
| Return filed late with tax owed | 5% of unpaid tax per month, up to 25% | Very High |
| Payment made late | 0.5% of unpaid tax per month | Medium |
| Missing Form 5472 (foreign-owned entity) | $25,000 per violation | Critical |
*Penalty figures are adjusted periodically by the IRS. Figures reflect 2024/2025 rates.
If you’re reading this after April 15 has already passed – don’t panic. Filing late is always better than not filing at all. Penalties add up over time, so the sooner you move, the less damage there is to deal with. We handle prior-year delinquent filings regularly.
This is the part most founders don’t expect: your “zero revenue” year actually has real value.
When you file Form 1120 correctly for a year when your company spent money but earned nothing, those startup costs – incorporation fees, software, payroll, legal work – get documented as deductible losses. Under U.S. tax rules, those losses don’t disappear. They carry forward and can offset future profits when your company starts generating revenue.
So filing a nil return isn’t just ticking a compliance box. It’s creating a tax asset you’ll actually be able to use later. A company that skips its nil return loses those documented losses for good – you can’t go back and claim what was never reported.
For NRP founders planning to grow their U.S. operations, this is one of the most overlooked benefits of filing early. The return you put in during year one – even with nothing to show yet – sets the foundation for how the IRS treats your company in year three when things start moving.
Startup losses documented in nil returns carry forward to offset future profits – a permanent tax benefit lost forever if you skip filing.
Every filed return builds your IRS compliance history – directly protecting your Mercury, Stripe, and PayPal accounts from flags and freezes.
Investors and VC firms request these returns during due diligence. A complete filing history shows a founder who runs a serious, organized company.
Filing a nil return costs a fraction of what an IRS penalty for not filing will cost you. The math is simple and the decision always favors filing.
We don’t just submit forms. We prepare a fully IRS-compliant corporate tax return that reflects your actual business structure, shareholder composition, accounting method, and activity for the year – nil returns for pre-revenue companies included.
They know the standard process, but they’re often not familiar with the rules that specifically apply to foreign-owned entities – things like Form 5472 for Pakistani-owned corporations, foreign shareholder reporting, or what compliance looks like for NRP founders running companies through Mercury and Stripe without a U.S. employee or physical address. We work with Pakistani founders and Non-Resident Pakistanis specifically.
| What We Handle | Details |
|---|---|
| Expert Preparation | Full Form 1120 preparation including all required schedules |
| Form 5472 Filing | Information return for 25%+ foreign-owned entities – often missed by generic services Standard review |
| E-File Submission | Direct IRS submission with authorized e-file status |
| Foreign Owner Compliance | Specific handling for NRP and foreign shareholder structures |
The whole process is handled remotely. No U.S. presence required. No U.S. phone number. No physical mailbox.
We talk through your entity type, activity level, and filing history. We figure out exactly what needs to be filed – including whether Form 5472 applies – and flag any prior compliance gaps before we start.
We send you a simple checklist. For most NRP founders, that means your EIN, Mercury or Stripe statements, year-end financials, and shareholder details. We tell you exactly what we need and nothing more. The tax-to-accounting reconciliation is handled on our end.
Our team prepares your Form 1120, including all required schedules, reconciliations, and supporting forms like Form 4562 and Schedule M-2. If Form 5472 is required, we prepare that too. The technical side is completely handled.
You review the draft return. We walk you through anything that needs clarification before you authorize submission. No surprises.
We submit your return directly to the IRS. You get your confirmation and a copy of the filed return for your records.
Fully remote. No U.S. presence required. Under 2 hours of your time total.
Here’s exactly what’s covered when you work with us. No hidden extras, no surprise add-ons at checkout.
The complete federal corporate return, submitted directly to the IRS on your behalf.
Information return for 25%+ foreign-owned corporations, prepared where required. Often missed entirely by generic filing services.
Reconciliation of undistributed earnings for the year, correctly computed and documented.
Financial-to-tax accounting reconciliation for larger or more complex entities. Handled completely.
Depreciation and amortization schedules where applicable – and full nil return preparation for pre-revenue companies, including loss documentation for future carryforward.
EIN confirmed active, prior returns checked for gaps, one revision round included, and official IRS acceptance confirmation with a complete filed return copy for your records.
Nil returns included – no additional charge for pre-revenue companies. State-level filings such as Delaware franchise tax coordination are available as an add-on and can be discussed during your consultation.
Every company’s situation is a bit different. The complexity of your return depends on your revenue level, how many shareholders you have, and which schedules are required. That’s why we use tiered pricing based on what your filing actually needs.
Best for: Pre-revenue companies with no income or expenses to report yet.
Best for: Early revenue, simple P&L with a straightforward balance sheet.
Best for: Scaling companies, multiple shareholders, or multiple-year catch-up filings.
Fair question. Here’s an honest look at the options. Standard tax software built for individual or domestic U.S. filers doesn’t handle the schedules required for foreign-owned corporations.
| Factor | DIY Filing | Generic U.S. CPA |
Our Service
Recommended
|
|---|---|---|---|
| Understanding of foreign-owner rules | Limited | Sometimes | Specialist expertise |
| Form 5472 preparation | Usually missed | Often overlooked | Standard review |
| Schedule M-3 preparation | Complex, error-prone | Varies | Handled completely |
| Nil return + loss documentation | Often missed | Sometimes overlooked | Standard inclusion |
| NRP/Pakistani founder experience | None | Rarely | Core focus |
| IRS e-file authorization | Requires separate setup | Varies | Done for you |
| Time investment | 10-20+ hours of yours | Your coordination time | Under 2 hours of your time |
| Risk of IRS notices | Higher | Moderate | Minimized |
Real results from NRP founders who were exactly where you are right now.
I’d had my Delaware C-corp for two years and filed nothing. They handled all three nil returns, dealt with the IRS correspondence, and my Mercury account is completely clean now. Took less than a week.
I was worried the whole process would be complicated since I’m based in Lahore. It was completely remote, they told me exactly what to send, and I had my confirmation within a few days.
I didn’t even know I needed to file with zero revenue. They explained everything clearly and filed within the week. Wish I’d found them two years earlier.
Join [X] founders who’ve filed with confidence.
We hear the same hesitations from founders every week. Here’s the straight answer to each one.
Nil returns are the most straightforward filings we do, and our pricing reflects that. But here’s the math worth thinking about: IRS penalties for not filing start at $210 per month per shareholder. If your company is foreign-owned, a missing Form 5472 adds another $25,000 per violation on top of that. The cost of filing is a fraction of what non-compliance ends up costing.
Filing fee vs. $210/month penalty + $25,000 Form 5472 penalty. The math always favors filing.
Standard tax software is built for domestic U.S. filers. It won’t handle foreign shareholder reporting, and it won’t flag the Form 5472 requirement that applies to most NRP-owned corporations. The form can look manageable on the surface – but the gaps it leaves are the kind the IRS will find eventually.
It’s not. We handle prior-year delinquent filings regularly. Filing late with full disclosure is always better than staying non-compliant. The IRS has established processes for getting current, and acting now stops the penalties from piling up further. The longer you wait, the more compounding happens.
If you own a U.S. C-corporation or an LLC taxed as a corporation, you’re required to file Form 1120 every year. Book a free call and we’ll confirm your obligations in minutes – no guessing required.
We operate under strict data handling protocols. Your EIN, financials, and shareholder details are transmitted and stored securely. We’re IRS-authorized e-filers – a status that requires meeting specific IRS security and compliance standards. This isn’t a side project; it’s a regulated professional service.
Get direct answers about your specific situation. No commitment, no pressure.
Everything Pakistani founders and NRPs ask before filing their Form 1120.
A nil return is a Form 1120 filed by a U.S. C-corporation that had no taxable income or business activity during the tax year. The IRS still requires the return to be filed even with zero revenue – skipping it results in penalties regardless of whether any tax was owed. There’s another reason to file too: it documents any startup losses for future tax carryforward, which is a benefit a lot of founders lose by not filing.
Yes. Any U.S. C-corporation – including those owned entirely by non-U.S. residents such as Pakistani nationals – must file Form 1120 with the IRS each year. The owner’s residency doesn’t exempt the entity from federal filing obligations. If the company is 25% or more foreign-owned, Form 5472 is also required.
Technically yes. But standard tax software isn’t designed for foreign-owned entities. The schedules and foreign shareholder reporting requirements – including Form 5472 – are complex, and errors can trigger IRS audits or significant penalties. Professional filing is strongly recommended.
You’ll typically need your EIN, a profit and loss statement, a balance sheet as of year-end, a shareholder equity schedule, any prior-year returns, and documentation of any deductions or depreciation you’re claiming. For most NRP founders, your Mercury or Stripe statements cover most of what we need to get started.
For calendar-year corporations the deadline is April 15. If more time is needed, Form 7004 can push that to October 15. Worth knowing though – an extension to file is not an extension to pay any taxes owed.
For returns with tax owed, the IRS charges 5% of unpaid tax per month, up to 25%. For nil returns with nothing owed, a separate penalty of $210 per month per shareholder applies for up to 12 months. A missing Form 5472 adds another $25,000 penalty per violation. Filing late is always better than not filing.
Already past the deadline? We handle late filings. Filing now stops penalties from compounding further.
Form 7004 is an automatic extension request that gives U.S. corporations an additional six months to file their Form 1120. No approval is needed – but any estimated taxes still have to be paid by the original April 15 deadline.
Form 5472 is an information return required for U.S. corporations that are 25% or more owned by foreign nationals – which includes most NRP-founded Delaware C-corps. It gets filed alongside Form 1120. Missing it means a $25,000 penalty per violation, per year. This is one of the most common compliance gaps we see, and a lot of generic filing services don’t include it at all.
Yes. Delaware C-corps must pay an annual franchise tax to the State of Delaware and may have a separate state income tax return obligation as well. Federal Form 1120 is completely separate from these state requirements. A lot of founders assume one covers the other – it doesn’t.
No. The U.S. and Pakistani tax systems operate independently. Filing Form 1120 with the IRS doesn’t automatically create a tax event in Pakistan or trigger an FBR audit. That said, keeping a clean U.S. compliance record matters for foreign investment – investors and VC firms will ask for these returns during due diligence.
Yes. The process is fully remote – no U.S. presence, address, or phone number required. Where you physically live has no bearing on your U.S. corporation’s filing obligation, and our service is designed for founders operating from Pakistan, the UAE, Saudi Arabia, the UK, Canada, or anywhere else.
Have a question not listed here? Ask our team – free consultation.
Whether your company is pre-revenue or actively trading, we prepare and file your IRS-compliant corporate tax return – fully remote, no U.S. presence required. Trusted by NRP founders across Pakistan, the UAE, and beyond.
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