First year is critical. Deadlines are new. Requirements are unclear. Mistakes are costly.
Most first-year owners miss deadlines. They don’t know what to file. They don’t know when. They don’t know with whom.
First year has specific requirements. Understanding them prevents problems. It ensures compliance.
This checklist shows you what to file, when, and with whom in your first year.
Key Takeaways
- Know what to file—understand requirements
- Know when to file—track deadlines
- Know with whom—identify agencies
- Follow checklist—complete all tasks
- Stay compliant—avoid problems
Table of Contents
Checklist Overview
First year has specific compliance tasks. They’re time-based. They’re required.
Early tasks set foundation: Get EIN. Open accounts. Set up systems.
Quarterly tasks maintain compliance: Estimated taxes. Payroll reports. Regular filings.
Annual tasks complete year: Tax returns. Annual reports. License renewals.
Why this matters: Checklist understanding prevents missed tasks. If you understand checklist, tasks complete.
Months 1-3
First three months establish foundation. Complete setup tasks. Begin compliance.
Obtain EIN
What to file: EIN application. Filed with IRS. Tax identification number.
When to file: Within first month. Before opening accounts. Before hiring employees.
With whom: IRS. Online application. Immediate processing.
Why this matters: EIN enables operations. If you obtain EIN, operations become possible.
Open Business Bank Account
What to do: Open business account. Separate from personal. Business finances.
When to do: Within first month. After obtaining EIN. Before operations.
With whom: Bank of choice. Provide formation documents. Provide EIN.
Why this matters: Bank account separates finances. If you open account, finances separate.
Set Up Accounting System
What to do: Set up accounting system. Track income. Track expenses.
When to do: Within first month. Before operations. Before transactions.
With whom: Accounting software or professional. Choose system. Set up properly.
Why this matters: Accounting system enables tracking. If you set up system, tracking becomes possible.
Pro tip: Use our TAM Calculator to evaluate market opportunity and inform business planning. Calculate market size to understand growth potential.
Months 4-6
Second quarter maintains compliance. File quarterly reports. Make payments.
First Quarterly Estimated Tax Payment
What to file: Estimated tax payment. Paid to IRS and state. Covers income tax.
When to file: April 15. First quarter payment. Adjust for weekends.
With whom: IRS and state. Online payment. Check deadlines.
Why this matters: Estimated payments prevent penalties. If you make payments, penalties decrease.
Payroll Tax Reports
What to file: Payroll tax reports. Filed with IRS and state. Reports wages and taxes.
When to file: Quarterly. Check deadlines. File on time.
With whom: IRS and state. Online filing. Check requirements.
Why this matters: Payroll reports are required. If you file reports, compliance maintains.
Months 7-9
Third quarter continues compliance. File quarterly reports. Make payments.
Second Quarterly Estimated Tax Payment
What to file: Estimated tax payment. Paid to IRS and state. Covers income tax.
When to file: June 15. Second quarter payment. Adjust for weekends.
With whom: IRS and state. Online payment. Check deadlines.
Why this matters: Estimated payments prevent penalties. If you make payments, penalties decrease.
Sales Tax Returns
What to file: Sales tax returns. Filed with state. Reports sales and tax collected.
When to file: Quarterly or monthly. Depends on state. Check your state.
With whom: State tax agency. Online filing. Check requirements.
Why this matters: Sales tax returns are required. If you file returns, compliance maintains.
Months 10-12
Final quarter completes year. File annual reports. Prepare for tax season.
Third Quarterly Estimated Tax Payment
What to file: Estimated tax payment. Paid to IRS and state. Covers income tax.
When to file: September 15. Third quarter payment. Adjust for weekends.
With whom: IRS and state. Online payment. Check deadlines.
Why this matters: Estimated payments prevent penalties. If you make payments, penalties decrease.
Annual Report
What to file: Annual report. Filed with state. Updates business information.
When to file: Anniversary of formation. Check your state. File on time.
With whom: State business agency. Online filing. Check requirements.
Why this matters: Annual reports maintain status. If you file reports, status maintains.
Prepare for Tax Season
What to do: Organize records. Gather documents. Prepare for filing.
When to do: Before year end. Organize throughout year. Prepare early.
With whom: Tax professional or yourself. Organize documents. Prepare properly.
Why this matters: Preparation enables filing. If you prepare, filing becomes possible.
Pro tip: Use our TAM Calculator to evaluate market opportunity and inform business planning. Calculate market size to understand growth potential.
Your Next Steps
First year compliance checklist keeps you on track. Know what to file, know when to file, know with whom, follow checklist, then stay compliant to avoid problems.
This Week:
- Begin reviewing first year checklist using our TAM Calculator
- Start creating compliance calendar
- Begin organizing documents
- Start tracking deadlines
This Month:
- Complete compliance calendar
- Organize all documents
- Set up tracking system
- Begin meeting requirements
Going Forward:
- Continuously follow checklist
- Track all deadlines
- File all required reports
- Maintain compliance
Need help? Check out our TAM Calculator for market evaluation, our compliance basics guide for fundamentals, our entity comparison guide for requirements, and our resource hub for links.
Stay informed about business strategies and tools by following us on X (Twitter) and signing up for The Initiative Newsletter.
FAQs - Frequently Asked Questions About Year One Compliance Checklist: What to File, When, and With Whom
What are the essential compliance tasks to complete in your first three months of business?
Obtain your EIN from the IRS, open a business bank account separate from personal finances, and set up an accounting system to track income and expenses from day one.
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Obtaining your EIN should be your first priority—apply online with the IRS for immediate processing, as you'll need it for bank accounts, hiring, and tax filings.
Open a dedicated business bank account within the first month using your formation documents and EIN to establish the financial separation that protects your liability shield.
Set up an accounting system (software like QuickBooks or a professional accountant) before your first transaction so every dollar is tracked from the start.
These three foundational tasks enable everything else in your compliance journey and must be completed before you begin regular business operations.
What quarterly tax obligations does a new business owner need to track?
Quarterly estimated tax payments to the IRS and your state (due April 15, June 15, September 15, and January 15), plus quarterly payroll tax reports if you have employees.
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Estimated tax payments are required because business owners don't have taxes automatically withheld from their income like W-2 employees do.
The IRS expects quarterly payments on April 15, June 15, September 15, and January 15 of the following year, with penalties for underpayment.
Most states also require quarterly estimated tax payments on the same or similar schedule—check your specific state's requirements.
If you have employees, quarterly payroll tax reports (Form 941) must be filed with the IRS, plus state-specific payroll reports depending on your location.
Sales tax returns may also be due quarterly or monthly depending on your state and your sales volume.
When is a new business's annual report due and what does it include?
Annual reports are typically due on the anniversary of your business formation, filed with your state's business agency, and update your business information including address, officers, and registered agent.
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Most states require annual reports filed with the Secretary of State or equivalent agency, though some states call them biennial reports (every two years).
The due date varies by state—some are due on your formation anniversary, others on a fixed date like April 1, and some at the beginning of the calendar year.
Reports typically include updated business name and address, registered agent information, officer/member names and addresses, and sometimes a brief business activity description.
Missing your annual report deadline can result in penalties, late fees, and eventually loss of good standing, which can jeopardize your liability protection.
How should a first-year business owner prepare for tax season in months 10-12?
Organize all financial records, gather tax-related documents, make your third quarterly estimated payment in September, file your annual report, and schedule time with your tax professional.
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Make your third quarterly estimated tax payment by September 15 to stay current and avoid underpayment penalties at year end.
File your annual report on time—check your state's specific deadline, as missing it can result in loss of good standing.
Organize all financial records throughout the year, not just at year end: categorize expenses, reconcile bank statements, and ensure your accounting system is up to date.
Schedule a year-end tax planning meeting with your accountant before December 31 to identify last-minute deduction opportunities like equipment purchases or retirement contributions.
Gather all required tax documents including 1099s, receipts for deductions, mileage logs, home office calculations, and any other supporting documentation.
What compliance agencies does a new business owner need to file with during year one?
The IRS (for EIN and federal taxes), your state's tax agency (for state taxes and estimated payments), your state's business agency (for annual reports), and local agencies (for business licenses).
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The IRS handles your EIN application, quarterly estimated federal income tax payments, payroll tax filings, and your annual federal tax return.
Your state tax agency handles state estimated tax payments, state payroll taxes, sales tax registrations and filings, and your annual state tax return.
Your state business agency (usually the Secretary of State) handles annual reports, registered agent filings, and maintaining your entity's good standing.
Local agencies may require business licenses, zoning permits, health permits, or other industry-specific registrations depending on your location and business type.
Keep a compliance calendar with all agency deadlines to ensure nothing is missed throughout the year.
What are the most common first-year compliance mistakes new business owners make?
Missing quarterly estimated tax payments, failing to separate business and personal finances, forgetting to file the annual report, and not setting up proper record-keeping from day one.
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Skipping quarterly estimated tax payments is the most expensive mistake—the IRS charges penalties and interest on underpayments, and a large tax bill in April can create cash flow crisis.
Mixing business and personal finances undermines your liability protection and makes tax preparation far more complicated and expensive.
Missing your annual report deadline can result in penalties and eventually administrative dissolution of your entity, stripping away your legal protections.
Poor record-keeping from the start means scrambling at tax time, missing legitimate deductions, and potentially triggering audit red flags from inconsistent reporting.
Set up systems in month one—accounting software, a compliance calendar, and a business bank account—to prevent all of these common first-year mistakes.
Sources & Additional Information
This guide provides general information about first year compliance. Your specific situation may require different considerations.
For market size analysis, see our TAM Calculator.
Consult with professionals for advice specific to your situation.
