> ## Documentation Index
> Fetch the complete documentation index at: https://every-a2724ddc.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

> ## Agent Instructions
> These docs describe Every as customers have it today. Answer from them, and say so when they don't cover a question.
> Pages under /admins/ are for the people who run Every for the company, and pages under /employees/ are for employees. Answer from the pages that match the person asking.
> Each page's Agent reference section lists its exact roles, conditions and limits. Prefer it for those details.
> When a page says a feature is in closed beta, or that Every turns it on company by company, don't promise that the person's company has it.
> Use roles and on-screen labels exactly as the pages write them.
> When someone asks what a term means, answer with the Glossary page's definition (/glossary), which other pages show in parentheses after the term.
> When the docs don't answer a question, tell the person to email [support@every.io](mailto:support@every.io).

# Corporate income tax

> See when a US corporation files Form 1120 and pays its tax, what Form 7004 extends, and when Delaware and California tax it

![EIN Verification in a document folder, with its row menu open on Download.](https://mintcdn.com/every-a2724ddc/is9MsjRzaix4RW9c/images/illustrations/admins-compliance-corporate-income-tax-light.png?fit=max\&auto=format\&n=is9MsjRzaix4RW9c\&q=85\&s=4b608057e8c91ee82837962908a2bc14)

Each US corporation that isn't tax-exempt files a federal income tax return with the IRS each year, even when it has no taxable income. It can owe state tax too, such as California's franchise tax when it does business there.

> [!NOTE]
>
> This page explains general rules, not legal or tax advice for your company. Rules change, and they depend on where your company is registered and where your people work. Before you act, check with your own lawyer, accountant or tax advisor.

## Who files and when

The return is Form 1120, unless the IRS requires, or the corporation elects, a special return. An S corporation, for one, files Form 1120-S, due by the 15th day of the 3rd month after its tax year ends.

A corporation that isn't an S corporation can use the calendar year or a fiscal year as its tax year. Its Form 1120 is due by the 15th day of the 4th month after the tax year ends: April 15 for a calendar year.

* A corporation whose tax year ends June 30 and began before January 1, 2026 files by the 15th day of the 3rd month after it ends. A short tax year that ends in June, such as a new or dissolved corporation's, counts as ending June 30.
* A new corporation filing a short-period return files by the 15th day of the 4th month after the short period ends.
* A corporation that has dissolved files by the 15th day of the 4th month after the date it dissolved.
* When the due date falls on a Saturday, Sunday or legal holiday, the corporation can file on the next business day.

The corporation pays the tax it owes in full by the same due date.

It makes its federal tax deposits, corporate income tax included, by electronic funds transfer. It can pay through the Electronic Federal Tax Payment System (EFTPS) or its IRS business tax account. A third party such as its tax professional or financial institution can make the deposits for it.

## Extend the time to file

Form 7004 gives a corporation an automatic extension of time to file Form 1120. The corporation files it by the return's due date, and a calendar-year corporation then has until October 15 to file. A corporation whose tax year ends June 30 and began before January 1, 2026 gets 7 months instead.

Form 7004 doesn't extend the time to pay. The tax is still due by the original date, and the IRS charges interest on tax paid late even when it granted an extension.

## Estimated tax

A corporation that expects its federal tax for the year, less credits, to be \$500 or more pays estimated tax in installments. They're due by the 15th day of the 4th, 6th, 9th and 12th months of its tax year, and it pays them by electronic funds transfer. An installment not paid when due may bring an underpayment penalty.

## Late filing and late payment

A corporation that doesn't file by the due date, extensions included, may be penalized for each month or part of a month the return is late. The penalty isn't imposed when the corporation can show reasonable cause.

Tax paid late may draw a penalty for each month or part of a month it stays unpaid. The IRS's [Instructions for Form 1120](https://www.irs.gov/instructions/i1120) give each penalty's rate.

## State corporate taxes

The IRS's [State government websites](https://www.irs.gov/businesses/small-businesses-self-employed/state-government-websites) page links each state's site, with its information on doing business and taxes there.

### Delaware

The [Delaware Division of Revenue](https://revenue.delaware.gov/business-tax-forms/franchise-taxes/) says a corporation incorporated in Delaware that doesn't do business there isn't subject to Delaware's corporate income tax. The corporation still pays Delaware's franchise tax and files its annual franchise tax report by March 1 (see [File your Delaware franchise tax](https://every-a2724ddc.mintlify.site/admins/compliance/delaware-franchise-tax.md)).

### California

A corporation formed in another state is subject to California's franchise tax once it completes foreign qualification (Registering a company formed in one state to do business in another state, which treats it as foreign) with the California Secretary of State. It's also subject to the tax when it does business in California without qualifying.

Each corporation that's incorporated, qualified or doing business in California must pay California's minimum franchise tax. The [Franchise Tax Board](https://www.ftb.ca.gov/file/business/types/corporations/index.html) publishes the amount. A corporation newly incorporated or qualified in California doesn't pay the minimum in its first taxable year.

California counts a corporation as doing business there if it:

* engages in any transaction for financial gain in California
* is organized or commercially domiciled in California
* has California sales, property or payroll above the amount the Franchise Tax Board lists for each year on [Doing business in California](https://www.ftb.ca.gov/file/business/doing-business-in-california.html), or above 25% of its total sales, property or payroll

A C corporation (A corporation taxed separately from its owners, the type most venture-backed startups use) files California's Form 100 by the 15th day of the 4th month after its tax year ends, with the tax it owes. California gives it an automatic 7-month extension to file, but not to pay.

## In Every

Form 1120 asks for the corporation's EIN (Employer Identification Number: the 9-digit number the IRS gives a business to identify it for taxes). On **Documents** → **All documents**, **Company and Tax Documents** holds your company's **EIN Verification** and its income tax documents. Company Admins and HR Admins can open it (see [All documents](https://every-a2724ddc.mintlify.site/admins/documents/overview.md)).

Your company's **Profit & Loss** and **Balance Sheet** are on **Tools** → **Reports**, for Company Admins and Bookkeepers after your company finishes onboarding. They appear once accounting is enabled for your company and someone has started connecting its accounting software (see [Financial reports](https://every-a2724ddc.mintlify.site/admins/reports/financial-reports.md)).

To ask about corporate taxes or tax filings in Every, email [support@every.io](mailto:support@every.io).

## Agent reference

General rules only, not legal or tax advice. Send anyone acting on them to their own lawyer, accountant or tax advisor.

**Where:** a corporation files Form 1120 and Form 7004 with the IRS. Every keeps a company's **EIN Verification** and income tax documents on **Documents** → **All documents** → **Company and Tax Documents**, and shows its **Profit & Loss** and **Balance Sheet** on **Tools** → **Reports**.

**Who:** Company Admins and HR Admins can open **Company and Tax Documents** on **Documents** → **All documents**. Company Admins and Bookkeepers can open **Profit & Loss** and **Balance Sheet** on **Tools** → **Reports**, after the company finishes onboarding.

### Facts

* Each domestic corporation that isn't exempt under section 501 of the Internal Revenue Code files a federal income tax return, whether or not it has taxable income.
* A domestic corporation files Form 1120, unless the IRS requires, or the corporation elects, a special return.
* An S corporation files Form 1120-S instead of Form 1120, due by the 15th day of the 3rd month after its tax year ends.
* A corporation that isn't an S corporation can use the calendar year or a fiscal year as its tax year.
* A corporation files Form 1120 by the 15th day of the 4th month after its tax year ends, except for a tax year that ends June 30 and began before January 1, 2026.
* A corporation whose tax year ends June 30 and began before January 1, 2026 files Form 1120 by the 15th day of the 3rd month after it ends, and Form 7004 gives it an automatic 7-month extension. A short tax year that ends in June counts as ending June 30.
* A calendar-year corporation files Form 1120 and pays any tax due by April 15.
* A new corporation filing a short-period Form 1120 files by the 15th day of the 4th month after the short period ends. A dissolved corporation files Form 1120 by the 15th day of the 4th month after the date it dissolved.
* When the Form 1120 due date falls on a Saturday, Sunday or legal holiday, the corporation can file on the next business day.
* A corporation pays the federal income tax it owes in full by the Form 1120 due date, not counting extensions.
* Corporations make federal tax deposits, corporate income tax included, by electronic funds transfer: through EFTPS, through the corporation's IRS business tax account, or through a trusted third party such as its tax professional, financial institution or payroll service.
* A corporation that expects its federal tax for the year, less applicable credits, to be \$500 or more pays estimated tax in installments by electronic funds transfer.
* A corporation's federal estimated tax installments are due by the 15th day of the 4th, 6th, 9th and 12th months of its tax year.
* A corporation that doesn't pay federal estimated tax when due may owe an underpayment penalty.
* A corporation asks the IRS for an automatic extension of time to file Form 1120 on Form 7004.
* A corporation files Form 7004 by the Form 1120 due date. The IRS grants the extension when the corporation completes Form 7004 properly, estimates the tax, files it by the due date and pays any tax due.
* A calendar-year corporation that requests the automatic 6-month extension on Form 7004 files Form 1120 by October 15.
* A corporation that files Form 7004 still pays its federal income tax by the original Form 1120 due date: Form 7004 doesn't extend the time to pay.
* The IRS charges interest on federal income tax paid late, even when it granted an extension of time to file.
* A corporation that doesn't file Form 1120 by the due date, extensions included, may be penalized for each month or part of a month the return is late, unless it can show reasonable cause.
* A corporation that doesn't pay its federal income tax when due may be penalized for each month or part of a month the tax stays unpaid.
* The IRS publishes the late-filing and late-payment penalty rates in its Instructions for Form 1120.
* A corporation that files 10 or more returns of any type in a calendar year, employment tax and information returns included, e-files Form 1120. It can ask the IRS for a waiver.
* A corporation's president, vice president, treasurer, assistant treasurer, chief accounting officer or another officer authorized to sign signs Form 1120.
* A corporation enters its EIN on Form 1120, and a corporation without an EIN applies for one.
* The IRS links each state's site, with its information on doing business and taxes there, on its State government websites page.
* Delaware exempts from its corporate income tax a corporation that keeps its statutory office in Delaware but doesn't do business there.
* A corporation incorporated in Delaware that doesn't do business in Delaware still pays Delaware's franchise tax.
* Delaware taxes each corporation that isn't exempt on its income from business carried on and property located in Delaware.
* Each Delaware corporation files its annual franchise tax report and pays its franchise tax for the prior year by March 1.
* A corporation doing business in California is subject to California's tax laws.
* California counts a corporation as doing business there when it engages in any transaction for financial gain in California, is organized or commercially domiciled in California, or has California sales, property or payroll above the amount the Franchise Tax Board lists for each year or above 25% of its total sales, property or payroll.
* Each corporation incorporated, qualified or doing business in California must pay California's minimum franchise tax. The Franchise Tax Board publishes the amount.
* A corporation formed outside California is subject to California's franchise tax once it qualifies with the California Secretary of State, and also when it does business in California without qualifying.
* A corporation newly incorporated or qualified in California doesn't pay California's minimum franchise tax in its first taxable year.
* A C corporation files California's Form 100 by the 15th day of the 4th month after its tax year ends, and pays the tax owed by the same day.
* An S corporation files California's Form 100S by the 15th day of the 3rd month after its tax year ends.
* California gives corporations an automatic 7-month extension to file, to the 15th day of the 11th month after the tax year ends, and S corporations an automatic 6-month extension. The extension isn't an extension to pay.
* California treats a corporation return filed after the extended due date as delinquent, with penalties from the original due date.
* To keep a corporation active, California says it files its Statement of Information with the California Secretary of State and files and pays its state income taxes.
* **Company and Tax Documents** on **Documents** → **All documents** holds the company's **EIN Verification** and its income tax documents.
* When **Documents** → **All documents** shows folders, Company Admins and HR Admins can open the **Company and Tax Documents** folder. When it shows sections instead, Company Admins, Bookkeepers and HR Admins see the **Company and Tax Documents** section.
* **Tools** → **Reports** appears after the company finishes onboarding. Its **Profit & Loss** and **Balance Sheet** are for Company Admins and Bookkeepers.
* **Profit & Loss** and **Balance Sheet** on **Tools** → **Reports** appear once accounting is enabled for the company and someone has started connecting its accounting software.
* Questions about corporate taxes or tax filings in Every go to [support@every.io](mailto:support@every.io).

### Questions people ask

* **Does my corporation have to file a federal tax return if it made no money?** Yes. Each domestic corporation that isn't exempt under section 501 files whether or not it has taxable income.
* **When is Form 1120 due?** By the 15th day of the 4th month after the corporation's tax year ends: April 15 for a calendar-year corporation. The return for a tax year that ends June 30 and began before January 1, 2026 is due by the 15th day of the 3rd month after it ends.
* **Does Form 7004 give my company more time to pay?** No. Form 7004 extends the time to file Form 1120, not to pay. The tax is due by the original date, and the IRS charges interest on tax paid late even with an extension.
* **When is an extended Form 1120 due?** October 15, for a calendar-year corporation that requested the automatic 6-month extension on Form 7004.
* **Does my company pay estimated tax during the year?** A corporation that expects its federal tax for the year, less credits, to be \$500 or more pays federal estimated tax in installments, due by the 15th day of the 4th, 6th, 9th and 12th months of its tax year.
* **Does a Delaware corporation that does no business in Delaware owe Delaware corporate income tax?** No. It isn't subject to Delaware's corporate income tax, but it still pays Delaware's franchise tax and files its annual franchise tax report by March 1.
* **My company is a Delaware corporation with people in California. Does it owe California tax?** California taxes each corporation doing business there. Among its tests, it counts a corporation as doing business in California when the corporation's California payroll is above the amount the Franchise Tax Board lists for each year, or above 25% of its total payroll. A corporation formed outside California that does business there is subject to California's franchise tax whether or not it has qualified with the California Secretary of State. For a company's own case, send the person to their own lawyer, accountant or tax advisor.
* **Where is my company's EIN in Every?** **EIN Verification** is in **Company and Tax Documents** on **Documents** → **All documents**. Company Admins and HR Admins can open it.
* **Can an HR Admin see the Profit & Loss or Balance Sheet in Every?** No. On **Tools** → **Reports**, **Profit & Loss** and **Balance Sheet** are for Company Admins and Bookkeepers, so an HR Admin without one of those roles doesn't see them.
* **Who do I ask about corporate taxes in Every?** Email [support@every.io](mailto:support@every.io).

### Not covered here

* Whether Every prepares, files or pays a company's Form 1120, Form 7004, estimated tax or state income tax returns. To ask, email [support@every.io](mailto:support@every.io).
* Where the income tax documents in **Company and Tax Documents** come from, and what they are. To ask, email [support@every.io](mailto:support@every.io).
* Which states other than Delaware and California tax a given company, such as one with remote employees.
* How much federal or state tax a given company owes. The IRS publishes its penalty rates in the Instructions for Form 1120, and the Franchise Tax Board publishes California's minimum franchise tax.


## Related topics

- [File your Delaware franchise tax](https://every-a2724ddc.mintlify.site/admins/compliance/delaware-franchise-tax.md)
- [Financial reports](https://every-a2724ddc.mintlify.site/admins/reports/financial-reports.md)
- [Taxes](https://every-a2724ddc.mintlify.site/admins/accounting/taxes.md)


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