Reporting & compliance
Cross-Border Wire & Tax Reporting
International buyers and sellers add real compliance steps — and real closing delay if you don't plan for it.
What it is
When either party to a secondary transaction is outside the US, extra reporting can apply: FBAR (FinCEN Form 114) for a US person's foreign financial accounts, and Form W-8BEN for a non-US seller certifying foreign status, which can affect US withholding on their gain.
Why it matters for a secondary
This market has genuine international participation — foreign angels investing in US startups, or US investors selling to buyers abroad — and wire delays tied specifically to cross-border compliance checks are a real, commonly underestimated source of closing delay, separate from ROFR or board-approval timelines.
Quick facts
- Non-US seller of US company stock
- May need a W-8BEN and could face US withholding — confirm with advisors on both sides
- US person with foreign financial accounts
- FBAR reporting may apply if thresholds are met
- Typical added wire delay
- Often 3–10 business days versus a domestic-only closing, for compliance review
Common mistake: Agreeing a closing date without building in the extra time cross-border compliance review typically adds.