Yes you need enough US parts to be compliant (piston, trigger group, floor plates, brake, furniture, etc, your pick). You will need either a press to remove the barrel or a gear puller (which is a lot cheaper), and you can re-install the barrel with 1/4" threaded rod and some nuts. Pick up a spot welder for welding the rails if they are not already welded. You can squash rivets with a modified set of bolt cutters. When I did my builts, parts kits were $100, and it cost me another $100 in tools plus a little more for US parts... came in somewhere around $175 per rifle when I was done. Times have changed unfortunately.
Check out the "build it yourself" forum. I have done a few AK builds myself (bent from flats) and it's not difficult if you can use a dremel.