Part 9: Annual Compliance

Part 1 — Before You Start

This section ensures the US is the right structure.

It covers:

• When a US entity creates real strategic value
• When it adds unnecessary complexity
• The difference between legal presence and tax exposure
• Where you will actually work versus where your customers are located
• How your home country will treat US-sourced income
• The full lifecycle from formation through scale

This section prevents structural mistakes before they are created.

Part 2 — Choosing Your US Entity

This section defines the architecture.

It covers:

• LLC vs C-Corp vs branch structures
• Why S-Corps are generally not available to non-US founders
• Effectively Connected Income (ECI) and its implications
• FDAP income and withholding treatment
• The ETBUS test and what triggers US trade or business status
• Inventory, employees, and physical presence risks
• Permanent Establishment exposure in your home country
• Delaware vs Wyoming vs Florida vs Texas — practical differences
• Governance, registered agent, and structural compliance

Entity selection determines tax outcome, investor compatibility, and cross-border exposure.

Part 3 — Formation

This section moves into implementation.

It covers:

• Step-by-step LLC and C-Corp formation
• Obtaining an EIN without a Social Security Number
• ITIN requirements where applicable
• Virtual office and mailing considerations
• Operating agreements and corporate bylaws
• Beneficial Ownership Information (BOI) reporting
• Common formation errors foreign founders make
• Realistic formation cost ranges

This ensures the structure is legally and operationally sound.

Part 4 — US Banking

This section addresses functionality.

It covers:

• Why banking is more difficult than formation
• Documentation banks require from foreign owners
• Fintech options vs traditional banks
• Remote account opening realities
• Stripe, Wise, and processor alternatives
• Receiving USD without a US bank account
• Multi-currency management and FX control
• Credit access for foreign-owned businesses

Without banking, the entity cannot operate effectively.

Part 5 — US Federal Tax

This is the structural core.

It covers:

• Non-resident alien tax treatment
• LLC flow-through taxation vs corporate taxation
• ECI vs FDAP income
• Form 5472 and pro forma 1120 requirements
• 1040-NR, 1065, and 1120 filing obligations
• Withholding on outbound payments
• Treaty claims and documentation
• Branch Profits Tax exposure
• Transfer pricing fundamentals
• Section 83(b) elections
• Estimated payments and tax year selection

Federal compliance is where errors become expensive quickly.

Part 6 — US State Tax

This section expands exposure beyond federal rules.

It covers:

• State income tax differences
• Sales tax obligations for remote sellers
• Economic nexus under Wayfair
• Franchise taxes and annual state fees
• Payroll tax triggered by hiring
• State compliance calendars

State tax operates independently and often surprises foreign founders.

Part 7 — Paying Yourself

This section addresses extraction strategy.

It covers:

• Salary, distributions, dividends, and management fees
• LLC distribution treatment
• C-Corp dividend and double taxation realities
• Arm’s-length intercompany management fees
• FICA and totalization agreements
• Timing considerations
• Home-country taxation of US-sourced income

Compensation strategy affects both US and home-country outcomes.

Part 8 — Accounting and Bookkeeping

This section builds structural discipline.

It covers:

• Cash vs accrual accounting
• Intercompany transaction recording
• FX accounting and currency gains
• Deferred revenue handling
• Documentation standards
• Corporate veil risk

Proper accounting is essential for cross-border defensibility.

Part 9 — Annual Compliance Calendar

This section consolidates recurring obligations.

It covers:

• Federal filing deadlines by entity type
• Form 5472 penalty exposure
• BOI reporting timelines
• Sales tax filing cycles
• Payroll deposit schedules
• Good standing requirements
• Audit risk triggers

This creates operational rhythm and reduces surprise exposure.

Part 10 — Hiring in the US

This section addresses expansion.

It covers:

• Hiring US employees as a foreign-owned entity
• Contractor classification risks
• Federal and state payroll compliance
• I-9 requirements
• PEO and Employer of Record structures
• Multi-state payroll implications

Hiring introduces layered compliance immediately.

Part 11 — Intellectual Property and Contracts

This section protects enterprise value.

It covers:

• US trademark and IP ownership decisions
• Licensing between US and foreign entities
• Royalty and transfer pricing implications
• US contract structure differences
• Data protection frameworks
• Governing law and dispute resolution clauses

IP location affects both tax and valuation outcomes.

Part 12 — Your Home Country Obligations

This is the differentiator.

It covers:

• Controlled Foreign Corporation rules
• Treaty interaction limits
• Reverse Permanent Establishment risk
• Transfer pricing documentation
• Foreign bank reporting equivalents
• Repatriation tax cost
• Social security double-contribution risk

Forming a US entity creates a second compliance layer but does not replace the first.

Part 13 — Applied Business Types

This section translates structure into context.

It covers:

• E-commerce founders
• SaaS and subscription businesses
• Consultants and service providers
• Venture-backed companies
• Real estate investors
• Multi-entity founders

Different models trigger different exposure patterns.

Part 14 — Working With US Advisors

This section defines advisory standards.

It covers:

• Why foreign founders need US-based technical expertise
• Form 5472 competency as a baseline filter
• EA vs CPA distinctions
• Coordinating multi-jurisdiction advisors
• Realistic annual compliance budgets

This guide is built for founders who want to operate in the US with structural clarity.