How to Start a Bookkeeping, Accounting or Tax Prep Outsourcing Company for US Clients from Abroad (2026), Without Visiting: US LLC or C-Corp, EIN Without an SSN, Bank Account, CPA Title Rules, PTINs for Foreign Preparers, Section 7216 Consent, WISP and the FTC Safeguards Rule
How a bookkeeping, accounting or tax preparation outsourcing firm outside the USA sets up a US company remotely to serve American CPA firms and small businesses: LLC or C-Corporation, EIN without an SSN or ITIN, a US business bank account without visiting, the services US firms outsource and how they are priced, what a non-CPA firm can and cannot offer, PTINs for preparers without an SSN, the Section 7216 consent rule for offshore tax work, the FTC Safeguards Rule and written information security plans, AICPA confidentiality rules, tax, and worked examples.
US accounting has a staffing problem. Fewer graduates are becoming CPAs, experienced staff are retiring, and small businesses still need their books closed every month and their returns filed every year. CPA firms of every size now send work offshore: bookkeeping, payroll processing, reconciliations, workpaper preparation and first drafts of tax returns. Small US businesses hire offshore bookkeepers directly through QuickBooks and Xero.
India, the Philippines, Latin America and Eastern Europe all have large, growing accounting outsourcing industries, and the work can be run without ever visiting the USA. A US company helps you contract with CPA firms and businesses, get paid by ACH and, for tax work, fit into the IRS's systems.
This guide covers setting the company up and the US rules that apply specifically to accounting and tax work done from abroad.
In short: A non-resident can form a US LLC or C-Corporation without visiting, get an EIN without an SSN or ITIN, and open a US business bank account remotely. Bookkeeping and tax preparation do not require a CPA licence, but only licensed firms may call themselves CPAs or perform audits, reviews and compilations. Anyone paid to prepare US tax returns needs a PTIN; preparers without an SSN apply with Form 8946. US tax preparers need the taxpayer's consent under Section 7216 before sending return information to a preparer outside the USA, and tax and accounting firms must keep a written information security plan under the FTC Safeguards Rule. With the work done abroad, a foreign-owned single-member LLC usually owes no US federal income tax, but files Form 5472 every year.
What US firms and businesses outsource
| Service | Typical client | Pricing |
|---|---|---|
| Bookkeeping (transaction coding, bank and card reconciliations, month-end close) | Small businesses, CPA firms | Monthly fee per client, or hourly |
| Accounts payable and receivable | Small and mid-sized businesses | Monthly or per transaction |
| Payroll processing support | CPA firms, businesses | Per payroll run or monthly |
| Financial statements and management reports | CPA firms, businesses | Monthly |
| Tax return preparation (1040, 1065, 1120, 1120-S) | CPA firms | Per return, or dedicated staff |
| Audit support (workpapers, sampling, testing) | CPA firms | Dedicated staff per month |
| Sales tax filings | E-commerce businesses | Per filing |
CPA firms often buy dedicated staff at a monthly rate, working inside the firm's own software and supervised by its managers. Small businesses usually buy a monthly bookkeeping package.
Can you start the company without visiting the USA?
Yes:
- Form the LLC or corporation online through a registered agent
- EIN without an SSN or ITIN: Form SS-4 to the IRS, processed manually for foreign owners
- US business bank account without visiting, at a bank or fintech that accepts foreign-owned companies
- Accounting software partner accounts (QuickBooks, Xero and others) in the company's name
- PTINs for your tax preparers, applied for online or on paper
The company, EIN and bank account usually take four to eight weeks. See opening a US company without visiting and EIN for non-residents. Accounting firms are easy for banks to understand; see the US business bank account guide.
US LLC or C-Corp?
US LLC formation for a bookkeeping firm
A single-member LLC owned by a non-resident is disregarded for US tax. With the work done outside the USA and no US office or staff, the fees are generally foreign-source and the LLC usually owes no US federal income tax. It files Form 5472 with a pro forma 1120 every year ($25,000 penalty if missed). If you sell bookkeeping to clients, your own books must be impeccable; see bookkeeping for a foreign-owned LLC.
A Wyoming LLC with EIN is $249, or $348 with a bank account, then $121 a year.
US C-Corp formation for an accounting outsourcing firm
A C-Corporation (21% federal tax) suits a firm that will hire US CPAs, partner with or acquire a US practice, or raise capital. Private equity has been buying accounting firms and outsourcing providers, and buyers prefer corporations. A Delaware corporation with EIN is $358, then $578 a year. See LLC vs Inc.
If you are a member of a professional body at home, such as the ICAI in India, check its rules on members owning or running a business abroad before you form.
What a non-CPA firm can and cannot offer
Accounting is regulated by each state's board of accountancy:
- The CPA title. Only individuals and firms licensed by a state board may use "CPA" or "certified public accountant". Many states also restrict "public accountant" and similar titles. Do not use them in your company name or marketing unless you are licensed.
- Attest services. Audits, reviews and, in most states, compilations of financial statements must be performed by licensed CPA firms.
- Bookkeeping, payroll and tax preparation are not restricted. Anyone can offer them, subject to the IRS rules for tax preparers below.
Many offshore firms work for US CPA firms, which keep the licence, the client relationship and the responsibility for any attest work.
Tax preparation from abroad: the IRS rules
PTIN
Anyone who prepares, or helps prepare, a US federal tax return for compensation must have a Preparer Tax Identification Number (PTIN), renewed every year.
- Preparers with an SSN apply online.
- Foreign preparers without an SSN apply with Form W-12 and Form 8946, the supplemental application that confirms their identity and foreign status.
Every offshore team member working on US returns needs a PTIN.
Signing and e-filing
The paid preparer who has primary responsibility signs the return. Returns are e-filed by an electronic return originator with an EFIN. In most outsourcing arrangements, your team prepares the return in the CPA firm's software, and the US firm reviews, signs and e-files.
Section 7216: consent for offshore preparers
Section 7216 of the Internal Revenue Code makes it a crime for tax preparers to disclose or use tax return information without authorisation. The regulations allow a US preparer to share information with another preparer to help prepare the return, but:
- disclosing return information to a preparer located outside the USA requires the taxpayer's written consent in the form the IRS prescribes
- disclosing the taxpayer's SSN to a preparer outside the USA is tightly restricted, so many firms redact SSNs before sending files offshore
US CPA firms that outsource tax work collect this consent through their engagement letters. As their vendor, you should ask for confirmation that consents are in place, and build your workflow so that SSNs are masked where required.
Circular 230
Representing taxpayers before the IRS (answering notices, handling audits) is governed by Circular 230 and generally limited to CPAs, attorneys and enrolled agents. Offshore staff can prepare the work, but a qualified US practitioner deals with the IRS. Enrolled agent status is open to non-US citizens who pass the IRS exam.
Security: the FTC Safeguards Rule and the WISP
Tax preparers and many accounting firms are financial institutions under the Gramm-Leach-Bliley Act, and the FTC Safeguards Rule requires them to have a written information security plan (WISP). Since 2023 the rule has required:
- a named qualified individual responsible for security
- a written risk assessment
- multi-factor authentication and encryption
- oversight of service providers, meaning your firm, if you serve CPA firms
- staff training, monitoring and an incident response plan
- since May 2024, notice to the FTC of breaches affecting 500 or more people
The IRS also requires preparers to confirm they have a WISP when renewing their PTIN. Publication 4557 explains the expectations. US clients will ask for your WISP and security controls, and larger CPA firms will ask for SOC 2.
In practice: staff work only in the client's systems through secure remote desktops, with no downloading, printing, USB storage or personal email.
Professional confidentiality
The AICPA Code of Professional Conduct requires CPA members to tell their clients before disclosing confidential information to a third-party service provider, and to make sure the provider protects it. Your CPA firm clients therefore need a confidentiality agreement with you, and usually tell their clients they use outsourced staff. State boards of accountancy may add their own rules.
Contracts and pricing
Your service agreement should cover:
- scope, deadlines, and busy-season capacity (January to April and September to October)
- confidentiality, Section 7216 and Safeguards Rule obligations
- who reviews and takes responsibility for the work (the client)
- liability limits and professional liability insurance
- non-solicitation of your staff, which CPA firms sometimes try to hire directly
- data return or deletion at the end
Clients pay by ACH to your US account. Give them a W-8BEN or W-8BEN-E for a foreign-owned single-member LLC, or a W-9 from a corporation. See W-8BEN-E vs W-8BEN and receiving payments from US clients. More on contracts in contracts with US clients.
Your team abroad
- Staff employed by your home-country firm serve the US company under an intercompany agreement; record related-party payments for Form 5472.
- Freelancers paid directly by the US company give a W-8BEN; work done abroad needs no US withholding and no Form 1099. See paying contractors abroad.
- Indian residents set up the US company under the ODI rules; see ODI and FEMA.
- Train your team on US GAAP basics, the US tax forms they prepare, and the client's software. Certifications such as QuickBooks ProAdvisor, Xero Advisor and the enrolled agent exam add credibility.
Sales tax
Bookkeeping and accounting services are not taxable in most states, though a few states tax some services broadly. See state taxes for foreign-owned companies.
Worked examples
These are illustrative examples, not client stories.
A tax and accounting outsourcing firm in Ahmedabad. Hetal's 50-person firm prepares 1040, 1065 and 1120-S returns for eight US CPA firms. It forms a Wyoming LLC under the ODI route, with an EIN and a US bank account. Every preparer has a PTIN obtained with Form 8946, staff work in the CPA firms' software through secure remote desktops, and the engagement letters of each CPA firm include Section 7216 consent. The firm's own WISP is shared with clients every year. The LLC has no US income tax, as the work is done in India, and files Form 5472.
A bookkeeping firm in Manila. Patricia's firm offers monthly bookkeeping packages to US e-commerce and restaurant businesses through QuickBooks Online. It forms a US LLC, markets itself as "bookkeeping services" without using "CPA" or "accountant", and partners with a US CPA firm for clients that need tax returns or reviewed financial statements.
An audit support company in Mexico City. A Mexican firm provides workpaper and testing staff to mid-sized US CPA firms. It forms a Delaware C-Corp, as it plans to hire US CPAs and offer more services. Its staff never sign or issue reports; the US firms keep responsibility for every audit.
Common mistakes
- Using "CPA" or "accountant" in your company name without a licence.
- Preparing returns without PTINs for every preparer.
- Receiving full SSNs offshore without the taxpayer's Section 7216 consent.
- No written information security plan.
- Staff downloading client files to personal devices.
- Offering compilations or reviews without a licensed CPA firm.
- Underestimating busy season and missing filing deadlines.
- Forgetting your own Form 5472.
Frequently asked questions
Can I start a bookkeeping company for US clients from India without visiting? Yes. The company, EIN and bank account are all set up remotely.
Do I need an SSN or ITIN for the EIN? No. Foreign owners apply on Form SS-4.
Can a foreign preparer get a PTIN without an SSN? Yes, by filing Form W-12 with Form 8946.
Can offshore staff prepare US tax returns? Yes, with PTINs, and with the taxpayer's Section 7216 consent when information is sent to a preparer outside the USA.
Do I need to be a CPA to offer bookkeeping or tax preparation to US clients? No. You need a CPA licence only to use the CPA title or to perform audits, reviews and most compilations.
How UCB can help
We form US LLCs and C-Corporations for bookkeeping and accounting outsourcing firms outside the USA, get the EIN without an SSN, and help open a US business bank account without visiting, through our formation, EIN and bank account package. Each year we prepare Form 5472 with the pro forma 1120, Form 1120 or Form 1065 for your own company, through our US tax filing service. We do not apply for PTINs or give professional licensing advice.
Starting an accounting outsourcing business for US clients? WhatsApp us at +1 315 961 2956 or email enquiries@ucbsolutions.com.
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This article is general information for non-resident business owners and is not legal or tax advice. Rules and fees change; contact us to confirm what applies to your situation.
