Cross-border operations consulting
Cross-border operations consulting Entity & structure- Choose structure with cross-border tax and compliance in mind (LLC vs C-Corp). Foreign-owned/disregarded LLCs often create extra IRS information filing obligations (e.g., Form 5472) and unexpected tax reporting; C-Corps may be simpler for some foreign investors.2) Federal tax & reporting- FBAR (FinCEN Form 114): U.S. persons (including entities) must report foreign financial accounts when aggregate value > $10,000 at any time in the year.- FATCA / Form 8938: additional foreign-asset reporting for certain taxpayers and entities.- Form 5472 / informational filings: required when reportable related-party transactions exist between U.S. reporting corporations (including many foreign-owned domestic entities) and foreign related parties — penalties for noncompliance are substantial.- Understand Effectively Connected Income (ECI) and permanent establishment (PE) concepts and whether activities create U.S. tax exposure.
Entity & structure- Choose structure with cross-border tax and compliance in mind (LLC vs C-Corp). Foreign-owned/disregarded LLCs often create extra IRS information filing obligations (e.g., Form 5472) and unexpected tax reporting; C-Corps may be simpler for some foreign investors.2) Federal tax & reporting- FBAR (FinCEN Form 114): U.S. persons (including entities) must report foreign financial accounts when aggregate value > $10,000 at any time in the year.- FATCA / Form 8938: additional foreign-asset reporting for certain taxpayers and entities.- Form 5472 / informational filings: required when reportable related-party transactions exist between U.S. reporting corporations (including many foreign-owned domestic entities) and foreign related parties — penalties for noncompliance are substantial.- Understand Effectively Connected Income (ECI) and permanent establishment (PE) concepts and whether activities create U.S. tax exposure.
Beneficial ownership & BOI (Corporate Transparency Act)- FinCEN BOI/CTA requires reporting of beneficial owners for many small domestic entities; foreign-owned U.S. entities must ensure BOI systems and filings are completed on time.
Export controls & sanctions- OFAC U.S. sanctions apply broadly; violations (even inadvertent) can produce civil/criminal penalties. Maintain a sanctions compliance program with key elements: management commitment, risk assessment, internal controls, testing/auditing, and training.- BIS/EAR and CBP: export licensing, classification, and customs rules may apply to goods, software/technology, and technical data crossing borders.
State-level requirements (what to check with each state)- Foreign qualification/"doing business" rules (Secretary of State filings) when establishing a physical presence or meeting activity thresholds.- Sales & use tax economic nexus thresholds (remote seller rules) — many states require registration/collection once sales or transaction thresholds are exceeded.- Employer registration: state withholding tax, SUTA registration, and unemployment/worker compensation responsibilities if hiring local employees or if remote employees reside in that state.- Local business licenses and industry-specific permits.
Employment & contractors- I-9 verification and E-Verify obligations for U.S. employees; proper classification of workers as employees vs contractors to avoid tax and labor liabilities.- Multi-state payroll withholding and SUTA obligations for remote workers — register and withhold in states where you have employees or nexus.
IP, contracts & data privacy- Register trademarks with USPTO and consider WIPO filings for international protection.- Include clear contractual clauses (governing law, dispute resolution, export control and sanctions compliance, data transfer clauses) and ensure data transfers comply with applicable state privacy laws (CA CCPA/CPRA and emerging state laws).
Practical market-entry checklist (minimum steps)- Determine market-entry model (export, distributor, branch, subsidiary).- Choose US entity type and prepare formation/foreign qualification filings.- Obtain EIN (IRS SS-4), open bank accounts; set up accounting and transfer-pricing documentation if applicable.- Register for state tax IDs, sales tax permits, and employer accounts where required.- Complete BOI/CTA filings if applicable.- Implement sanctions screening/export-control classification and licensing checks.- Protect IP and put compliant contracts in place.- Set up payroll, I-9 verification, and benefits compliance for US hires.- Engage local counsel/tax advisor and maintain an annual compliance calendar for federal/state filings.
Cross-border operations consulting Entity & structure- Choose structure with cross-border tax and compliance in mind (LLC vs C-Corp). Foreign-owned/disregarded LLCs often create extra IRS information filing obligations (e.g., Form 5472) and unexpected tax reporting; C-Corps may be simpler for some foreign investors.2) Federal tax & reporting- FBAR (FinCEN Form 114): U.S. persons (including entities) must report foreign financial accounts when aggregate value > $10,000 at any time in the year.- FATCA / Form 8938: additional foreign-asset reporting for certain taxpayers and entities.- Form 5472 / informational filings: required when reportable related-party transactions exist between U.S. reporting corporations (including many foreign-owned domestic entities) and foreign related parties — penalties for noncompliance are substantial.- Understand Effectively Connected Income (ECI) and permanent establishment (PE) concepts and whether activities create U.S. tax exposure.
Entity & structure- Choose structure with cross-border tax and compliance in mind (LLC vs C-Corp). Foreign-owned/disregarded LLCs often create extra IRS information filing obligations (e.g., Form 5472) and unexpected tax reporting; C-Corps may be simpler for some foreign investors.2) Federal tax & reporting- FBAR (FinCEN Form 114): U.S. persons (including entities) must report foreign financial accounts when aggregate value > $10,000 at any time in the year.- FATCA / Form 8938: additional foreign-asset reporting for certain taxpayers and entities.- Form 5472 / informational filings: required when reportable related-party transactions exist between U.S. reporting corporations (including many foreign-owned domestic entities) and foreign related parties — penalties for noncompliance are substantial.- Understand Effectively Connected Income (ECI) and permanent establishment (PE) concepts and whether activities create U.S. tax exposure.
Beneficial ownership & BOI (Corporate Transparency Act)- FinCEN BOI/CTA requires reporting of beneficial owners for many small domestic entities; foreign-owned U.S. entities must ensure BOI systems and filings are completed on time.
Export controls & sanctions- OFAC U.S. sanctions apply broadly; violations (even inadvertent) can produce civil/criminal penalties. Maintain a sanctions compliance program with key elements: management commitment, risk assessment, internal controls, testing/auditing, and training.- BIS/EAR and CBP: export licensing, classification, and customs rules may apply to goods, software/technology, and technical data crossing borders.
State-level requirements (what to check with each state)- Foreign qualification/"doing business" rules (Secretary of State filings) when establishing a physical presence or meeting activity thresholds.- Sales & use tax economic nexus thresholds (remote seller rules) — many states require registration/collection once sales or transaction thresholds are exceeded.- Employer registration: state withholding tax, SUTA registration, and unemployment/worker compensation responsibilities if hiring local employees or if remote employees reside in that state.- Local business licenses and industry-specific permits.
Employment & contractors- I-9 verification and E-Verify obligations for U.S. employees; proper classification of workers as employees vs contractors to avoid tax and labor liabilities.- Multi-state payroll withholding and SUTA obligations for remote workers — register and withhold in states where you have employees or nexus.
IP, contracts & data privacy- Register trademarks with USPTO and consider WIPO filings for international protection.- Include clear contractual clauses (governing law, dispute resolution, export control and sanctions compliance, data transfer clauses) and ensure data transfers comply with applicable state privacy laws (CA CCPA/CPRA and emerging state laws).
Practical market-entry checklist (minimum steps)- Determine market-entry model (export, distributor, branch, subsidiary).- Choose US entity type and prepare formation/foreign qualification filings.- Obtain EIN (IRS SS-4), open bank accounts; set up accounting and transfer-pricing documentation if applicable.- Register for state tax IDs, sales tax permits, and employer accounts where required.- Complete BOI/CTA filings if applicable.- Implement sanctions screening/export-control classification and licensing checks.- Protect IP and put compliant contracts in place.- Set up payroll, I-9 verification, and benefits compliance for US hires.- Engage local counsel/tax advisor and maintain an annual compliance calendar for federal/state filings.
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