AI Companies Going Global: Compliance Package
For AI software and hardware companies entering the U.S.: entity choice, formation, EIN and ITIN, Form 5472, sales tax, cross-border payments and R&D costs, put together for the stage your company is at, with one bilingual team.
What is included
- Set-up: Delaware C corporation or Wyoming LLC, formation, registered agent and EIN; ITINs through our CAA, with no original passport mailed
- First-year filings: BE-13 within 45 days of formation, BOI check and state registrations
- Every year: Form 1120 with Form 5472, state returns, Delaware franchise tax and annual reports
- Bookkeeping and financial statements: subscription revenue, deferred revenue, cloud and R&D costs, ready for investors and due diligence
- Sales tax: whether your SaaS or hardware is taxable in each state, nexus monitoring, registration and filing
- Cross-border: service and license fees paid to the parent in China, withholding and Form 1042-S, treaty rates and related-party documentation
- R&D: section 174 treatment of U.S. and foreign research costs, the research credit (Form 6765) and the payroll tax offset
Built around your stage
AI teams usually enter the U.S. in three steps, and each step has different compliance work. We combine the modules below to fit where you are now and add the rest when you need them.
Module 1: Landing (first 3 months)
- Entity and state chosen with your funding plans in mind: a Delaware C corporation if you plan to raise money; a Wyoming LLC can suit a team that wants to start selling first, and we explain up front what converting later costs
- Formation, registered agent and EIN; ITINs for foreign officers through our CAA, with no original passport mailed
- BE-13 filing for a new foreign-owned company, within 45 days
- The company documents banks and payment platforms such as Stripe ask for
- A chart of accounts for a SaaS or hardware business, and a first-year compliance calendar
Module 2: Operating (every year)
- Monthly or quarterly bookkeeping, with a balance sheet, income statement and cash flow statement
- Form 1120 with Form 5472, state returns, Delaware franchise tax and annual reports
- Sales tax: we watch each state threshold as revenue grows, register when needed and file on time
- Payroll and payroll tax filings for U.S. employees
- Payments to contractors abroad: Forms W-8BEN and W-8BEN-E collected and payment records kept
Module 3: Cross-border (related-party payments or a parent in China)
- Pricing and contract terms for service fees, license fees and loan interest
- Withholding: what must be withheld, whether the 10% U.S.–China treaty rate applies, and Forms 1042 and 1042-S
- R&D costs: U.S. and China-based research handled separately
- Reporting to the parent in Chinese, reconciled with its consolidated accounts
- U.S.-side documents needed for the ODI filing in China
For AI hardware companies
If you import, tariffs, the importer of record and the customs bond drive your cost. We record duties, freight and refunds in inventory cost correctly and handle sales tax on physical goods state by state. A licensed customs broker files the entries; we work from their data.
What the package does not cover
Export controls, CFIUS, data privacy and product liability are legal questions for an attorney. Customs entries are filed by a licensed customs broker, and the ODI filing in China is handled by professional firms there. We handle U.S. tax and accounting and supply the figures and documents the others need.
How to start
- A free 15-minute call: your structure, product, where revenue comes from and where the team is
- A written scope and quote, module by module, with deadlines
- Engagement and document upload online through the client portal
- Work begins, with reminders ahead of each deadline on your compliance calendar
For the rules and a worked example, see the guide at yclcpa.com/aigo.
Common questions
Our whole team is in China. Can we still set up a U.S. company?
Yes. Formation, the EIN, the registered agent and the yearly filings can all be done remotely. If an officer needs an ITIN, we review the passport as a CAA, so the original is not mailed. Banks and payment platforms set their own requirements.
We have no revenue yet. Do we still file?
Yes. A U.S. corporation with a 25% foreign owner, or a foreign-owned single-member LLC, files Form 5472 every year it has dealings with its owner, including the owner paying formation costs, capital or loans. The penalty starts at $25,000 per form.
Do we charge sales tax on SaaS subscriptions?
It depends on the state. Some states tax SaaS and others do not, and you only have to register once you pass a state threshold. We check your sales against each state threshold and tell you when one is close.
Can we deduct what we pay engineers in China?
U.S. research costs can currently be deducted in the year paid; foreign research costs, including a team in China, are amortized over 15 years. How the contracts and payments are set up affects the deduction, so plan before paying.
Is it one team for both sides?
Yes. We talk with your team in Chinese, keep the U.S. books and filings in English, and reconcile the two.
Tell us your situation. We will tell you the fee.
A few short questions, a written quote within one business day, and a free 15-minute consultation if you would rather talk it through first.