US Expansion for International Manufacturers
Accounting and fractional CFO support for international manufacturers setting up US distribution: entity structure, US GAAP books, landed cost, transfer pricing coordination, Form 5472, sales tax and state compliance.
The short answer
Opening a US sales or distribution company means getting four things right early: the structure, US-standard books, federal, state and sales tax compliance, and pricing between the parent and the US company. We set up and run the US finance function, report to headquarters in its format, and coordinate your US CPA, attorneys and customs broker.
Choose the right US structure
The entity you pick drives tax, liability and reporting for years. Your US tax advisor and attorney confirm the choice and form the entity; we model the cash and reporting impact of each option.
How money and goods flow
The price the US company pays the parent sets three things at once: where profit is taxed, how much duty is paid at the border, and whether the US company has cash to operate. Plan it before the first shipment.
Profits return to the parent as dividends, which may carry US withholding, often reduced by tax treaty.
Three rules we set up from day one: a documented, arm's-length pricing method agreed with advisors in both countries; intercompany balances settled on agreed terms (or formally documented as a loan or equity); and one invoicing currency with clear ownership of exchange risk.
Your US compliance calendar
A foreign-owned US company carries filings that domestic companies don't. Missing them is the most common and costly mistake we see.
| Requirement | Applies when | How often |
|---|---|---|
| Federal income tax return (Form 1120) | Every US corporation | Annual |
| Form 5472 | 25%+ foreign-owned corporation, or foreign-owned single-member LLC | Annual, with the return |
| Transfer pricing documentation | Any sales, fees, royalties or loans with the parent | Annual |
| State registration and income/franchise tax | Employees, inventory, offices or enough sales in a state | Annual |
| Sales and use tax | Physical presence in a state (staff, office or inventory), or sales into it above the state's threshold: often $100,000 a year, and in some states a number of transactions | Monthly to annual |
| Payroll taxes | Any US employees | Every payroll, quarterly |
| Customs entries and duties | Every import shipment | Per shipment |
| Beneficial ownership report | A foreign company registered directly in a US state (US-formed companies are exempt since 2025) | Once, then on changes |
We're not a CPA firm. We keep the calendar, prepare the books and schedules every filing depends on, and coordinate the people who file. See how we work with your CPA.
One set of books, two audiences
What headquarters gets
- Monthly results in the group's format, currency and timetable
- US chart of accounts mapped to group reporting
- Intercompany balances that tie out on both sides
- Margin by product, customer and channel after freight and duty
What US lenders, customers and auditors get
- US GAAP financial statements on a monthly close
- Inventory at true landed cost, reconciled to the warehouse
- A cash forecast covering the import cycle and parent funding
- Audit- and borrowing-base-ready schedules
Your first year in the US
- Month 1Decide the structure with US tax and legal advisors, and form the entity.
- Months 1–2Register and set up: federal tax ID, state registrations, US bank account, payroll and a customs broker.
- Before first shipmentAgree intercompany terms and pricing in writing, and set up the accounting system mapped to group reporting.
- First saleMap sales tax exposure by state and collect exemption certificates from customers.
- Every monthClose the books and report to headquarters.
- Year endDeliver packages for the US CPA, transfer pricing advisor and group auditors.
How we help
Based in Dallas–Fort Worth, supporting international manufacturers with US operations anywhere in the country. Related: consumer electronics importers.
Frequently Asked Questions
Should an international manufacturer use a US subsidiary or a branch?
Most use a US subsidiary, usually a corporation, because it separates US liability and tax from the parent. A branch can make sense in specific cases. The choice depends on your home country's tax rules and its treaty with the US, so make it with tax advisors in both countries.
What is Form 5472 and who has to file it?
It reports transactions between a US company and its foreign related parties, such as product purchases, loans and fees. It applies to US corporations that are at least 25% foreign-owned and to foreign-owned single-member US LLCs. The penalty for not filing is $25,000 per form per year.
Do we have to collect US sales tax?
Possibly in many states. A state can require you to collect if you have a physical presence there, such as employees, an office or inventory in a warehouse. It can also require it based on sales alone: most states set a dollar threshold, often $100,000 a year, and some also count the number of transactions. Sales to resellers and many manufacturers can be exempt with valid exemption certificates.
How should we price products sold from the parent to the US company?
At arm's length, using a documented method agreed with tax advisors in both countries before the first shipment. The price affects US income tax, customs duties and the US company's cash, so plan for all three.
Are you a CPA firm? Who files our US tax returns?
No. We run the US accounting and finance function and prepare the books and schedules the returns depend on. A US CPA firm prepares and files the returns, and attorneys form the entity. We coordinate them and can introduce firms with international manufacturing experience.
Can you report to our headquarters in our format?
Yes. We map the US chart of accounts to your group reporting, deliver monthly results on your timetable and in your reporting currency, and reconcile intercompany balances so consolidation ties out.
Get clear on your numbers
Book a free 30-minute call to talk through your cash flow, margins and growth plans with a manufacturing finance expert.