Cash flow setup for global entrepreneurs

Federal reporting and tax compliance - EIN (Form SS-4): Non-U.S. persons/entities can obtain an EIN. Form SS-4 (Rev. 12-2025) details sections to complete for foreign applicants and special cases (e.g., foreign-owned U.S. disregarded entities).

Excerpt: "is a foreign person needing an EIN to comply with IRS withholding regulations... needs an EIN to complete a Form W-8 (other than Form W-8ECI), avoid withholding on portfolio assets, or claim tax treaty benefits" (Form SS-4). - Form 5472: "Use Form 5472 to provide information required under sections 6038A and 6038C..." Applies to 25% foreign-owned U.S. corporations and foreign corporations engaged in a U.S. trade or business.

Foreign-owned U.S. disregarded entities must attach a pro forma Form 1120 with Form 5472; filing due by the tax return due date (including extensions). Penalties: "$25,000" for failure to file. (IRS Instructions for Form 5472). - Other IRS considerations: ITIN for individuals (IRS ITIN page) when needed; Forms 1042/1042-S for withholding on U.S.-source payments to foreign persons; 1099/1099-NEC rules for contractor payments (IRS guidance) - FinCEN BOI (Corporate Transparency Act): As of March 26, 2025 FinCEN issued an interim final rule narrowing BOI reporting to foreign entities registered to do business in the U.S.; domestic reporting companies and U.S. persons were exempted by the IFR.

Deadlines: foreign reporting companies registered before March 26, 2025 had an initial deadline of April 25, 2025; companies registering after that date have 30 days after registration to file. Verbatim excerpt: "All entities created in the United States — including those previously known as 'domestic reporting companies' — and their beneficial owners are now exempt from the requirement to report beneficial ownership information (BOI) to FinCEN." (FinCEN BOI page).

State compliance highlights (select states requested) - California (CDTFA, Wayfair): Remote sellers (including foreign sellers) must register and collect CA use tax if combined sales into CA exceed $500,000 in the preceding or current calendar year.

Excerpt: "...the total combined sales of tangible personal property for delivery in California by the retailer and all persons related to the retailer exceed $500,000." (CDTFA Wayfair). - New York: Economic nexus thresholds and registration rules (NY Tax Dept) relevant to sales tax and vendor registration (NY guidance). - Texas: Franchise tax and sales tax nexus thresholds via Texas Comptroller (guidance pages). - Florida: Department of Revenue guidance for registration and sales tax obligations (state pages). - Delaware: No state sales tax; corporate franchise taxes and annual report filing via Delaware Division of Revenue/Secretary of State (Delaware resources). - Washington: B&O tax and sales tax nexus via Washington Dept of Revenue (guidance). - Note: State nexus rules vary; many states adopted economic nexus thresholds after Wayfair; authoritative consolidation resources (Avalara, Sales Tax Institute, Wolters Kluwer) summarize thresholds and filing triggers.

Banking, payments, and fintech options for non-U.S. founders - Traditional bank accounts: Many U.S. banks require in-person identity verification; documentation includes formation docs, EIN, operating agreement, and passport/ID of beneficial owners.

Expect enhanced KYC and delays. - Fintech/borderless banking: Stripe Atlas (incorporation + EIN + bank opening assistance), Mercury and Brex allow many non-US founders to open U.S. business accounts remotely, subject to eligibility; Wise, Payoneer, and PayPal provide cross-border money movement and merchant services commonly used by international founders.

Stripe Atlas excerpt: "Join 100,000+ founders... incorporate in Delaware, get their company tax ID (EIN), issue founder equity... Open business bank account". - Payment processing: Consider Stripe, PayPal, Adyen, and marketplace facilitators; understand withholding and 1099/1099-K reporting differences.

Marketplaces may collect and remit sales taxes in some states. Payroll, contractors, and withholding - Payroll: Federal (IRS) and state payroll tax registration required when hiring U.S. employees; consider payroll providers with international support (Gusto, Deel, Remote).

Withholding for payments to nonresident contractors: use IRS Forms W-8 family and possibly Form 1042/1042-S reporting and withholding. - 1099s: U.S. businesses must issue 1099-NEC/1099-MISC to contractors who are U.S. persons.

For foreign contractors, obtain W-8BEN/W-8BEN-E to document foreign status; withholding rules differ. Cash management, FX, and treasury practices - Cash flow best practices: forecasting, DSO/AR optimization, AP management, building reserves, scenario planning (sources: JPMorgan Treasury, Workday). - Multi-currency management: Use multi-currency accounts (Wise, Payoneer), netting, intercompany loans (documented at arm's length), and FX hedging (for predictable recurring flows).

Engage a treasury advisor or bank (e.g., JPMorgan) for hedging strategies and foreign-exchange risk management. - Transfer pricing and repatriation: For multinational groups, consult transfer pricing rules and documentation (PwC, Deloitte, EY guidance).

Consider treaty benefits and withholding rates for dividends/interest/royalties. Practical checklist and templates to include in content (recommended) - Entity & tax setup: Choose entity type (LLC vs C-Corp) with tax advisor; obtain EIN (Form SS-4) and ITIN (if needed).

Document operating agreement or bylaws. Consider implications of pass-through taxation for foreign LLC members and Form 5472 filing requirements for foreign-owned DEs. - Banking: Gather formation documents, EIN, passports/IDs, and US business address/registered agent.

Evaluate fintech vs traditional bank based on travel ability, services, and fees. - Sales tax and nexus: Map sales by state, compare to economic nexus thresholds (CA $500k, NY $500k/100 txns, others vary), register where required, automate tax calculation (AvaTax, TaxJar). - Payroll & contractors: Register for EIN-based payroll accounts, set up state payroll withholding accounts where employees are located, use compliant payroll providers, maintain W-8 forms for foreign contractors, track 1099 filing obligations. - Reporting & recordkeeping: Maintain detailed AR/AP records, intercompany agreements, transfer pricing documentation, Form 5472 and pro forma 1120 if applicable, FBAR/FinCEN reporting if foreign account thresholds met, and BOI filings if required for foreign reporting companies. - Cash forecasting & treasury: Build 13-week cash forecast, manage DSO, set supplier payment terms, optimize FX flows, consider sweep accounts and multicurrency wallets.

Federal reporting and tax compliance - EIN (Form SS-4): Non-U.S. persons/entities can obtain an EIN. Form SS-4 (Rev. 12-2025) details sections to complete for foreign applicants and special cases (e.g., foreign-owned U.S. disregarded entities).

Excerpt: "is a foreign person needing an EIN to comply with IRS withholding regulations... needs an EIN to complete a Form W-8 (other than Form W-8ECI), avoid withholding on portfolio assets, or claim tax treaty benefits" (Form SS-4). - Form 5472: "Use Form 5472 to provide information required under sections 6038A and 6038C..." Applies to 25% foreign-owned U.S. corporations and foreign corporations engaged in a U.S. trade or business.

Foreign-owned U.S. disregarded entities must attach a pro forma Form 1120 with Form 5472; filing due by the tax return due date (including extensions). Penalties: "$25,000" for failure to file. (IRS Instructions for Form 5472). - Other IRS considerations: ITIN for individuals (IRS ITIN page) when needed; Forms 1042/1042-S for withholding on U.S.-source payments to foreign persons; 1099/1099-NEC rules for contractor payments (IRS guidance) - FinCEN BOI (Corporate Transparency Act): As of March 26, 2025 FinCEN issued an interim final rule narrowing BOI reporting to foreign entities registered to do business in the U.S.; domestic reporting companies and U.S. persons were exempted by the IFR.

Deadlines: foreign reporting companies registered before March 26, 2025 had an initial deadline of April 25, 2025; companies registering after that date have 30 days after registration to file. Verbatim excerpt: "All entities created in the United States — including those previously known as 'domestic reporting companies' — and their beneficial owners are now exempt from the requirement to report beneficial ownership information (BOI) to FinCEN." (FinCEN BOI page).

State compliance highlights (select states requested) - California (CDTFA, Wayfair): Remote sellers (including foreign sellers) must register and collect CA use tax if combined sales into CA exceed $500,000 in the preceding or current calendar year.

Excerpt: "...the total combined sales of tangible personal property for delivery in California by the retailer and all persons related to the retailer exceed $500,000." (CDTFA Wayfair).

- Fintech/borderless banking: Stripe Atlas (incorporation + EIN + bank opening assistance), Mercury and Brex allow many non-US founders to open U.S. business accounts remotely, subject to eligibility; Wise, Payoneer, and PayPal provide cross-border money movement and merchant services commonly used by international founders.

Stripe Atlas excerpt: "Join 100,000+ founders... incorporate in Delaware, get their company tax ID (EIN), issue founder equity... Open business bank account". - Payment processing: Consider Stripe, PayPal, Adyen, and marketplace facilitators; understand withholding and 1099/1099-K reporting differences.

Marketplaces may collect and remit sales taxes in some states. Payroll, contractors, and withholding - Payroll: Federal (IRS) and state payroll tax registration required when hiring U.S. employees; consider payroll providers with international support (Gusto, Deel, Remote).

Withholding for payments to nonresident contractors: use IRS Forms W-8 family and possibly Form 1042/1042-S reporting and withholding. - 1099s: U.S. businesses must issue 1099-NEC/1099-MISC to contractors who are U.S. persons.

For foreign contractors, obtain W-8BEN/W-8BEN-E to document foreign status; withholding rules differ. Cash management, FX, and treasury practices

- Multi-currency management: Use multi-currency accounts (Wise, Payoneer), netting, intercompany loans (documented at arm's length), and FX hedging (for predictable recurring flows). Engage a treasury advisor or bank (e.g., JPMorgan) for hedging strategies and foreign-exchange risk management.

- Entity & tax setup: Choose entity type (LLC vs C-Corp) with tax advisor; obtain EIN (Form SS-4) and ITIN (if needed). Document operating agreement or bylaws.

Consider implications of pass-through taxation for foreign LLC members and Form 5472 filing requirements for foreign-owned DEs.

- Sales tax and nexus: Map sales by state, compare to economic nexus thresholds (CA $500k, NY $500k/100 txns, others vary), register where required, automate tax calculation (AvaTax, TaxJar). - Payroll & contractors: Register for EIN-based payroll accounts, set up state payroll withholding accounts where employees are located, use compliant payroll providers, maintain W-8 forms for foreign contractors, track 1099 filing obligations. - Reporting & recordkeeping: Maintain detailed AR/AP records, intercompany agreements, transfer pricing documentation, Form 5472 and pro forma 1120 if applicable, FBAR/FinCEN reporting if foreign account thresholds met, and BOI filings if required for foreign reporting companies. - Cash forecasting & treasury: Build 13-week cash forecast, manage DSO, set supplier payment terms, optimize FX flows, consider sweep accounts and multicurrency wallets.

• New York: Economic nexus thresholds and registration rules (NY Tax Dept) relevant to sales tax and vendor registration (NY guidance).
• Texas: Franchise tax and sales tax nexus thresholds via Texas Comptroller (guidance pages).
• Florida: Department of Revenue guidance for registration and sales tax obligations (state pages).
• Delaware: No state sales tax; corporate franchise taxes and annual report filing via Delaware Division of Revenue/Secretary of State (Delaware resources).
• Washington: B&O tax and sales tax nexus via Washington Dept of Revenue (guidance).
• Note: State nexus rules vary; many states adopted economic nexus thresholds after Wayfair; authoritative consolidation resources (Avalara, Sales Tax Institute, Wolters Kluwer) summarize thresholds and filing triggers. Banking, payments, and fintech options for non-U.S. founders
• Traditional bank accounts: Many U.S. banks require in-person identity verification; documentation includes formation docs, EIN, operating agreement, and passport/ID of beneficial owners. Expect enhanced KYC and delays.
• Cash flow best practices: forecasting, DSO/AR optimization, AP management, building reserves, scenario planning (sources: JPMorgan Treasury, Workday).
• Transfer pricing and repatriation: For multinational groups, consult transfer pricing rules and documentation (PwC, Deloitte, EY guidance). Consider treaty benefits and withholding rates for dividends/interest/royalties. Practical checklist and templates to include in content (recommended)
• Banking: Gather formation documents, EIN, passports/IDs, and US business address/registered agent. Evaluate fintech vs traditional bank based on travel ability, services, and fees.