Business
United States — Business: Accounting
The United States has a complex system of accounting rules and regulations, and relocating business owners should familiarize themselves with Generally Accepted Accounting Principles (GAAP) and potential tax implications. The Internal Revenue Service (IRS) oversees tax compliance.
VerifiedGovernment / official sourcePublication 583 (12/2024), Starting a Business and Keeping RecordsLast reviewed: 2026-09-10
Key facts
- The US uses both cash and accrual accounting methods.
- Foreign businesses must comply with US tax laws and regulations.
Steps
- Step 1: Determine Accounting Method — Choose between the cash and accrual accounting methods, considering which best suits the business's needs and complies with US regulations.
- Step 2: Comply with GAAP — Familiarize yourself with GAAP principles and ensure financial statements accurately reflect the business's financial position and performance.
- Step 3: File Tax Returns — Submit required tax forms to the IRS, including Form 1120 for corporations and Form 1040 for individual business owners.
Costs
- Compliance consulting fees: varies by firm and services required
Timelines
- Compliance and setup: 1-6 months or longer, depending on complexity and business size
Required documents
- Federal tax ID number (EIN)
- Business license or registration
- Articles of incorporation (for corporations)
Common mistakes
- Failing to maintain accurate and up-to-date financial records
- Incorrectly applying GAAP or tax laws
- Ignoring compliance deadlines and penalties
AI confidence note (remove before publishing)
This information is based on general knowledge of US accounting regulations and may not be comprehensive or up-to-date. Relocating businesses should consult with a qualified accounting professional or attorney to ensure accurate compliance.