- Monday–Friday, 8:30 a.m.–5:30 p.m.
- Tel: 213-738-6000
- Fax: 213-738-6062
- Email: [email protected]
- 3435 Wilshire Blvd Suite 600, Los Angeles, CA 90010
U.S. Accounting and Tax Questions for Korean Companies
Establishing a U.S. entity is only one part of entering and operating in the United States.
A Korean company may also need to address federal and state tax filings, EIN applications, accounting procedures, payroll,
intercompany transactions, financial reporting, and communication between the U.S. operation and Korean headquarters.
The following frequently asked questions explain several of the issues that should be considered
when establishing or operating a Korean-owned U.S. company.
A Korean company should first determine its business objectives, ownership structure, operating location, expected employees, financing arrangements, and anticipated transactions between the Korean parent and the U.S. entity.
The legal form selected can affect registration requirements, taxation, liability, governance, financial reporting, and future transactions.
Entity formation should therefore be coordinated among qualified legal, tax, and accounting professionals rather than treated as a registration-only decision.
ABC CPAs assists with the accounting and tax aspects of the proposed structure and may coordinate with the client’s attorneys and other advisors. ABC CPAs does not provide legal services.
Related Service
Most U.S. corporations, partnerships, employers, and other business entities need an Employer Identification Number for federal tax filing, payroll, banking, and other business purposes.
International applicants that do not qualify for the IRS online application process may apply under the procedures provided in the current Form SS-4 instructions.
Obtaining an EIN does not by itself complete the company’s federal, state, payroll, licensing, or other registration requirements.
ABC CPAs can assist with EIN applications as part of an appropriate accounting or tax engagement.
Related Service
The required filings depend on the entity type, ownership, transactions, business activities, employees, states of operation, and relationships with foreign affiliates.
A foreign-owned U.S. corporation may have federal income tax returns and information-reporting obligations. Certain corporations with reportable transactions involving foreign related parties may be required to file Form 5472.
A foreign-owned U.S. disregarded entity may also have a Form 5472 filing requirement with a pro forma Form 1120 even when it does not otherwise file a regular federal income tax return.
Additional obligations may include:
- State income or franchise tax returns
- Sales and use tax filings
- Payroll tax returns
- Local business filings
- Foreign transaction disclosures
- Information returns involving owners or related parties
The filing requirements should be reviewed based on the company’s actual structure and activities.
Form numbers, filing procedures, and reporting requirements may change. Applicable requirements should be confirmed for the relevant tax year and the company’s specific facts.
Related Services
Accounting procedures should generally be established before significant transactions begin.
Payroll registration and processing should be completed before employees are paid.
Early setup helps the company properly record capital contributions, intercompany transactions, startup costs, payroll, sales, expenses, fixed assets, and amounts owed between the U.S. company and its foreign parent.
U.S. employers remain responsible for accurate and timely employment tax compliance even when a payroll provider is used.
ABC CPAs provides bookkeeping, monthly accounting, financial reporting, tax compliance, and full-service payroll support based on the agreed scope of the engagement.
Related Services
ABC CPAs can assist with the accounting and tax aspects of establishing and operating a U.S. subsidiary.
Depending on the engagement, assistance may include:
- Evaluating accounting and tax considerations
- Applying for an EIN
- Establishing the chart of accounts and accounting procedures
- Setting up payroll and related tax registrations
- Identifying federal and state filing requirements
- Reviewing intercompany accounting and reporting
- Coordinating with Korean headquarters and U.S. management
- Working with attorneys and other professional advisors
ABC CPAs does not provide legal services or independently determine the company’s legal form. Entity formation documents, ownership agreements, licenses, and other legal matters should be handled by qualified legal counsel.
Related Service
Explore More FAQ Topics
Related Services
Explore ABC CPAs services related to U.S. market entry, accounting, tax compliance, payroll, multi-state operations, and coordination with Korean headquarters.
Korea Desk
Learn how ABC CPAs supports communication and coordination for Korean companies, U.S. subsidiaries, Korean-owned businesses, executives, and individuals with U.S. accounting and tax matters.
Visit the Korea DeskKorean Companies Entering and Operating in the U.S.
Learn about accounting, tax, payroll, audit, financial reporting, multi-state, and cross-border support for Korean companies establishing or operating U.S. businesses.
Explore Services for Korean CompaniesTax Compliance and Advisory Services
Learn about federal, state, local, and international tax compliance and advisory services for businesses and individuals.
Explore Tax ServicesBookkeeping, Monthly Accounting, and Tax Compliance
Learn about bookkeeping, monthly financial reporting, reconciliations, payroll coordination, year-end preparation, and recurring tax compliance.
Explore Accounting ServicesDiscuss Your U.S. Operations
The accounting and tax requirements for a Korean-owned U.S. company depend on its ownership, entity structure, business activities, employees, locations, transactions, and relationships with its Korean parent or other foreign affiliates.
Contact ABC CPAs to discuss the accounting, tax, payroll, financial reporting, multi-state, or cross-border matters that may apply to your U.S. operations.
- Email: [email protected]
- Tel: 213-738-6000
- 3435 Wilshire Blvd Suite 600, Los Angeles, CA 90010
- Monday–Friday, 8:30 a.m.–5:30 p.m.
Resource Center Notice
The information provided in this Resource Center is for general informational purposes and is not intended as legal, investment, valuation, or other non-CPA professional advice. Accounting and tax requirements may vary based on the facts, jurisdictions, entity structure, reporting period, and applicable laws and regulations. Information may also change after publication. You should consult the appropriate accounting, tax, legal, financial, or other professional adviser regarding your specific circumstances. Accessing or using this Resource Center does not by itself create a professional engagement with ABC CPAs.