Compliance package for foreign founders

For foreign founders establishing a business in the U.S., understanding compliance is crucial. Key steps include selecting the right entity (Delaware C-Corp for venture-backed startups, or LLCs with specific tax considerations), appointing a registered agent, and obtaining an Employer Identification Number (EIN) via Form SS-4.

Foreign-owned single-member LLCs must file Form 5472 and a pro-forma Form 1120 annually, with significant penalties for non-compliance. Additionally, new FinCEN Beneficial Ownership Information (BOI) reports are mandatory for many entities.

Opening a U.S. business bank account requires robust KYC, though some fintechs like Mercury and Brex offer remote onboarding. Be aware of state-specific tax obligations, sales tax nexus rules, and payroll compliance if hiring U.S. employees.

Missing critical filings like Form 5472 or BOI, or underestimating state tax obligations, are common pitfalls. A comprehensive compliance package should include formation documents, tax reporting calendars, BOI filing guidance, and banking support.

For foreign founders establishing a business in the U.S., understanding compliance is crucial. Key steps include selecting the right entity (Delaware C-Corp for venture-backed startups, or LLCs with specific tax considerations), appointing a registered agent, and obtaining an Employer Identification Number (EIN) via Form SS-4.

Foreign-owned single-member LLCs must file Form 5472 and a pro-forma Form 1120 annually, with significant penalties for non-compliance. Additionally, new FinCEN Beneficial Ownership Information (BOI) reports are mandatory for many entities.

Opening a U.S. business bank account requires robust KYC, though some fintechs like Mercury and Brex offer remote onboarding. Be aware of state-specific tax obligations, sales tax nexus rules, and payroll compliance if hiring U.S. employees.

Missing critical filings like Form 5472 or BOI, or underestimating state tax obligations, are common pitfalls. A comprehensive compliance package should include formation documents, tax reporting calendars, BOI filing guidance, and banking support.