TLDR
Global companies face significant challenges expanding to the US due to complex state-level regulations and compliance requirements.
Commenda needed to deliver ongoing state payroll and entity compliance for its rapidly growing customer base, without sacrificing hours of internal bandwidth.
AbstractOps will be embedded into the Commenda platform, providing users an automated solution to prevent ongoing state risks, centralize state mail and critical account numbers, and streamline state registrations.
The problem for global companies expanding to the US
As global companies grow, they often face daunting operational burdens such as opening entities, bookkeeping, and tax filing due to diverse legal and regulatory requirements.
Setting up entities requires navigating local laws, delays, and cultural barriers, while bookkeeping is complicated by varying accounting standards and currency issues.
Tax filing is equally complex, involving diverse laws, double taxation risks, and transfer pricing compliance.
On top of ALL of these global challenges, expanding to the United States presents a host of others.
Hiring employees across 50 different states requires registration with over 200 different state agencies.
Each state and agency has different requirements for initial, and more importantly, ongoing, compliance.
These state nuances are extremely challenging for US-based companies, and incrementally more so for international newcomers.
"It's like entering 50 new countries at once," says AbstractOps CEO Kristin Bass.
The problem for Commenda
Commenda was built to help global companies solve global incorporation, taxes, and bookkeeping challenges. They do this extremely well, and as a result, have experienced massive growth throughout 2024.
However, as their global clients demanded a solution for state payroll and entity tax compliance in the US, they faced a choice.
Require clients to manage on their own, or
Offer compliance support internally.
The former option was never viable - the customer satisfaction and revenue downsides were too great - so the team opted to manage internally, and found what most do: it’s an incredibly tedious, resource intensive, and ultimately, risky process to manage for ONE company … let alone the rapidly growing volume onboarding onto Commenda.
Commenda clients can utilize AbstractOps AI Copilot, embedded directly within CommendaOS.How the Commenda x AbstractOps partnership solves
In the coming weeks, Commenda users will have state compliance technology powered and managed by AbstractOps embedded directly into their Commenda portal.
These users will have the ability to:
Automate state registrations + annual reports as they hire,
Centralize registered agent services + state mail, email, account numbers and logins
Take Control using AI to monitor and prevent ongoing risk.
As a result, the Commenda team will be able to expand their offering to solve more customer problems, without an ongoing operational efficiency drag.
“It’s more than just initial registrations,” says Commenda CEO Spencer Schneier. “Global companies want to know that, whether it’s two months or two years from now, for as long as they’re operating in the US, they’re not going to get hit with some surprise state penalty.”
“For us, this partnership allows us to meet what our expanding client base is asking for, without scaling up a ton of internal resources."
About Commenda
Commenda is changing the way companies expand and operate overseas. Our comprehensive, easy-to-use platform helps cross-border companies of all sizes monitor and remediate their compliance needs in most markets around the globe. At Commenda, we believe in a global free market, but understand the pressures of fractionalized tax, audit, payroll, human resources, and secretarial compliance. That's why we are building the world's best tool to navigate global compliance.
For more details, visit Commenda.
About AbstractOps
Payroll platforms, accounting firms, and HR consultants use AbstractOps to eliminate clients’ ongoing state compliance risks from registration through closure, without hours of manual effort.
Over the past five years, hundreds of leaders operating in multiple states have used AbstractOps’ combination of automated technology + human guidance to replace manual activities required to get compliant and stay compliant: monitoring risks, calling state agencies, learning new requirements, hunting down account numbers, and coordinating due dates.
The company utilizes a simple pricing model, enabling partners to create a revenue-driving offering devoid of incremental service fees.
For more details, visit AbstractOps.
