Great to hear! we invite you to send any doubt to the e-mail with your inquiry to support@jamesbakercpa.com, our team would search for it and let you know
Hi Carrington Love, thank your for your support. In case you want to know more about us and our services, please check our website: www.jamesbakercpa.com/ Have a nice day!
Thank you for the information, James. As a non-US citizen, which state is best for registering an LLC between New Mexico and Missouri from the cost and tax point of view?
Hello, I am currently creating a dropshipping business and am establishing an LLC. My idea is to do it in Wyoming. My question is that as I have read: Foreigners with a Wyoming LLC are only taxed in the US on income from US sources, which means that income from other countries won’t be taxed by the US. But non-U.S. owners of Wyoming LLCs are taxed initially on any US-sourced income at a rate of 30%. This 30% is paid to the IRS. These Wyoming LLCs will file US taxes on Form 1040-NR with the actual amount of tax due. If the amount due is less than the 30% initially taxed, the IRS will issue a refund in the amount overpaid. We would sell products to American citizens. So I clearly don't understand because I see this is the same for other states too and I also read and see that LLC for non us residents don't pay taxes, so could you please show me some clarity on this issue. Thank you so much. I really want to know if a Corporation or an LLC is the best way to go and if I would have to or not pay taxes.
He is not employing Amazon, he is contracting Amazon's services, so he is not taxed. Only tax I know of is possibly sales tax in the state that he registered the LLC. So say he registered in Florida, and a Florida resident purchases and Amazon delivered to Florida, then sales tax on that purchase is required in Florida. Florida doesn't charge for out of state purchases nor does it tax businesses. He becomes taxable if he relocates to the US, say an E2 visa and is there actively doing business for 6+ months in a year. I think if he sources products from US suppliers, then he may become taxable, I think?
Hi James, first of all let me give you congratulations for your channel I viewed all the videos and you are very clear, and direct to clarification those important question for who are a non-us and non-alien (like me), that want to start a business using US LLC. So from the tax perspective I would like to get your opinion, In short future my idea is to open a affiliate marketing company using US LLC, I will work for some EU and US companies, promoting their affiliate offers, to US and EU markets.. in my business model I will have to worry with US income tax or sales taxes? Im not the owner of the products and services, I just promote them using digital marketing, what is your opinion? Thank you very much
Thank you, James. The information is super useful. I have a question: I am a US citizen and have LLC (S corp) and going to do drop-shipping in the US. I don't currently live in the US and will do this business remotely and travel. Am I also not paying income taxes? Do I need to file the same Form 5474 at the end of the year? Thanks a lot!
Great video Sir! I have a quick question. I have a dropshipping business, but in my team we are one us citizen (not resident) and two non-citizens (and non-residents) does this affects something in terms of taxation? I heard that all founders should be non residents for not paying taxes
Hello Sven, we would love to answer your questions but it is best to send a email with your inquiry to support@jamesbakercpa.com so we can help you more widely
great advice James. Just one thing that isn't clear yet: can a LLC be set up and owned by a foreign company (eg. UK Ltd comp.) or does it need to be a natural person?
Hi Dick! Thank you so much for your support. Yes, it's possible to set it up by a foreign company. In case you want to know more about us and our services, please check our website: www.jamesbakercpa.com/ Have a nice day!
James thanks for video. I have few ideas in head, one is business in US. And another is same thing in Europe, do you have any advice for EU? Thanks in advance
If I were to be a canadian resident and create a US LLC, since it's a pass through tax so it'll funnel into my personal income tax in Canada, would it be better to send that income to my Canadian corporation?
Thanks for a very useful video! What wasn't covered here is the 30% of Gross sales that Amazon withholds from every payment made to non residents. How do you get that back? With a refund when you fill your tax return? Will the IRS agree on refunding the complete withheld amount?
Yeah he act like he’s a smart ass! The truth is every single person who makes US income will have to pay a minimum of 20-40% taxes based on the income he makes. Period!
@@user-gp1sg6sk1nfor non resident it's a 30% flat rate but still non resident can be exempt from paying income tax 1 if USA have a tax treaty with the business owner country 2 if the business owner doesn't have any inventory or employee
Hello James, Is there a difference if I (foreign owned LLC) will engage into government contracts (product-based) and the model is dropship. Example I will supply some office consumables to a Federal office on a regular basis and product source is through dropship. Cheers!
Hello! Thank you for the video. I and my wife have an LLC in the US and we are outside of the US and we're not legal residents. We sell Amazon FBA and on Amazon from a rent warehouse. From the video above I understand that we shouldn't pay taxes (income tax) in the US. Do I understand correctly? Should we file any tax reports to IRS?
Hello sir, I'm having a problem I live in the Dominican Republic and now I see on eBay probably due to a new policy that they have implemented, that all customers are required to pay taxes when they buy items, and as far as I know a foreign customer should not be required to do so if is not living in the country, can you help me with that?
What about Shopify store owner who has LLC in the US, but has no employees or physical entity in the US? Does he have to file forms 1120 and 5472? How to prepare them?
Hi sir. im just wondering something. i live in Europe, Norway. if i start a dropshipping business and sells products to customers in USA. does that mean that i have to pay usa Taxes?. i am Not a USA resident or a USA citizen. Just wanna say that your videos are great with information. i wished you started this years back :)
Hi James! Your videos already helped me a lot to create my LLC. I create one in New Mexico. So I'm clear now that is not necessary to pay taxes in the US if I do dropshipping from Argentina for example. but is it necessary for the forms 1120 and 5472 for New Mexico? IncFile is telling me "New Mexico LLCs are currently not required to file annual reports" I would like to confirm that with you. thank you in advance! you are the best
Annual reports are the other state filing... Form 5472 and 1120 is the IRS filing. Sorry, but unfortunately every foreign owned single member LLC have to file that. P.S. I also formed LLC in New Mexico. And if you know how to file these Forms 5472 and 1120 by now, please share some views.
This “accountant” act like he’s a smart ass! The truth is every single person who makes US income will have to pay a minimum of 20-40% taxes based on the income he makes. Period!
Sir doing dropshipping in usa as an American resident, i have opened an LLC . If i apply for the reseller certificate will I have to pay tax? Please answer.
So you don't have to pay "VAT" neither if you areus LLC owner living as foreigner outside the USA. I know you said taxes, but does apply to the "VAT" too?
Hi The big Gorillas, thank you for watching. I need more information to answer your question, please write to support@jamesbakercpa.com, so we can assist you. Have a great day!
Hi there, thank you for your videos ! My question is : I am an EU citizen, could I open a LLC in US in order to create an EU Amazon account and have VAT number for EU countries ? Thank you !
Hi James, The UA-cam channel is great, so much good information in one place. Bravo :) I am writing to you from Munich, Germany. I have opened a Shopify Store for the USA market and my goal is to import the highest quality products from China so that I do not have, for example, complaints and similar things. I would like to ask you if I would open an LLC company anywhere in the USA, what should I pay attention to. My goal is to abide by the laws offered by the USA for us foreigners who want to open an LLC. Are there any things that are implied that must be done additionally? (Topic: Tax and the like I don't understand how it works) Thank you in advance for the answers and I wish you many followers on your channel which is very high quality.
Thanks for the kind comment. To be honest watch a couple of the calls. Many of my callers do ecommerce. Can email us to setup a private call or use links in video. Thanks and best of luck.
I don't think so ... he has to change so many laws for that ... if you have another question you can send an email to support@jamesbakercpa.com and we will help you
Hi Richard, I appreciate your comment. However, a company may be subject to pay taxes, not only for the activity of its business but for many other reasons. My goal is to educate and share valuable content with entrepreneurs and investors.
@@JamesBakerCPA What are some of these many reasons a company may be subject to pay taxes? Please actually explain, with valid citation of law, why a dropshippling- LLC pays NO TAXES. Nothing in your video is valid or valuable. You are missing your goal.
Check my video with Mr Paulson it is in the description. If you need specific details for your situation you can contact us at support@jamesbakercpa.com I'll work to include more citations in my videos.
awesome, learnt a lot from this vidoe. Thank you so much
Great to hear! we invite you to send any doubt to the e-mail with your inquiry to support@jamesbakercpa.com, our team would search for it and let you know
Great video my guy. I am very aggressive with the IRS as well.
Hi Carrington Love, thank your for your support. In case you want to know more about us and our services, please check our website: www.jamesbakercpa.com/ Have a nice day!
Thank You very much sir
Most welcome
Thank you for the information, James. As a non-US citizen, which state is best for registering an LLC between New Mexico and Missouri from the cost and tax point of view?
Thanks
Hi Tajaye, Glad it was helpful! I am here to help if you have any questions or comments.
Hello, I am currently creating a dropshipping business and am establishing an LLC. My idea is to do it in Wyoming. My question is that as I have read: Foreigners with a Wyoming LLC are only taxed in the US on income from US sources, which means that income from other countries won’t be taxed by the US. But non-U.S. owners of Wyoming LLCs are taxed initially on any US-sourced income at a rate of 30%. This 30% is paid to the IRS. These Wyoming LLCs will file US taxes on Form 1040-NR with the actual amount of tax due. If the amount due is less than the 30% initially taxed, the IRS will issue a refund in the amount overpaid.
We would sell products to American citizens. So I clearly don't understand because I see this is the same for other states too and I also read and see that LLC for non us residents don't pay taxes, so could you please show me some clarity on this issue. Thank you so much. I really want to know if a Corporation or an LLC is the best way to go and if I would have to or not pay taxes.
Im interested in your question. Did you find an answer for that?
Hello at 21:47 you mentioned ITIN. Why is that necessary for him if he is not paying income taxes???
We would love to answer your questions but it is best to send a email with your inquiry to support@jamesbakercpa.com
He is not employing Amazon, he is contracting Amazon's services, so he is not taxed. Only tax I know of is possibly sales tax in the state that he registered the LLC. So say he registered in Florida, and a Florida resident purchases and Amazon delivered to Florida, then sales tax on that purchase is required in Florida. Florida doesn't charge for out of state purchases nor does it tax businesses. He becomes taxable if he relocates to the US, say an E2 visa and is there actively doing business for 6+ months in a year. I think if he sources products from US suppliers, then he may become taxable, I think?
Hello hello, Thank you for your comment, if you want to talk with us you can send an email to support@jamesbakercpa.com
Hi James, first of all let me give you congratulations for your channel I viewed all the videos and you are very clear, and direct to clarification those important question for who are a non-us and non-alien (like me), that want to start a business using US LLC. So from the tax perspective I would like to get your opinion, In short future my idea is to open a affiliate marketing company using US LLC, I will work for some EU and US companies, promoting their affiliate offers, to US and EU markets.. in my business model I will have to worry with US income tax or sales taxes? Im not the owner of the products and services, I just promote them using digital marketing, what is your opinion? Thank you very much
Yes an LLC would be perfect but it depends what country you are from. Thanks for watching and liking the videos very happy to be working with you!
Thank you, James. The information is super useful. I have a question: I am a US citizen and have LLC (S corp) and going to do drop-shipping in the US. I don't currently live in the US and will do this business remotely and travel. Am I also not paying income taxes? Do I need to file the same Form 5474 at the end of the year? Thanks a lot!
Hi Diana, we invite you to send any doubt to the e-mail with your inquiry to support@jamesbakercpa.com our team would search for it and let you know
Great video Sir! I have a quick question. I have a dropshipping business, but in my team we are one us citizen (not resident) and two non-citizens (and non-residents) does this affects something in terms of taxation? I heard that all founders should be non residents for not paying taxes
Hello Sven, we would love to answer your questions but it is best to send a email with your inquiry to support@jamesbakercpa.com so we can help you more widely
great advice James. Just one thing that isn't clear yet: can a LLC be set up and owned by a foreign company (eg. UK Ltd comp.) or does it need to be a natural person?
Hi Dick! Thank you so much for your support. Yes, it's possible to set it up by a foreign company. In case you want to know more about us and our services, please check our website: www.jamesbakercpa.com/ Have a nice day!
May i know the type of forms that we have to file and send to IRS?
Yes we review this in many of our videos.
James thanks for video. I have few ideas in head, one is business in US. And another is same thing in Europe, do you have any advice for EU? Thanks in advance
Hello! We can help you with your business in the US. Email support@jamesbakercpa.com for my team to advise you
If I were to be a canadian resident and create a US LLC, since it's a pass through tax so it'll funnel into my personal income tax in Canada, would it be better to send that income to my Canadian corporation?
Good sold in US are US source income. Therefore, taxable in United States..
Exactly. Gain on the sale of inventory purchased for resale is US source income if title passes in the US. §1.961-7(a)
Thanks for a very useful video!
What wasn't covered here is the 30% of Gross sales that Amazon withholds from every payment made to non residents. How do you get that back? With a refund when you fill your tax return? Will the IRS agree on refunding the complete withheld amount?
Hi Alejandro, you're welcome! Send an email to support@jamesbakercpa.com so we can help you out
Yeah he act like he’s a smart ass! The truth is every single person who makes US income will have to pay a minimum of 20-40% taxes based on the income he makes. Period!
@@user-gp1sg6sk1nfor non resident it's a 30% flat rate but still non resident can be exempt from paying income tax 1 if USA have a tax treaty with the business owner country 2 if the business owner doesn't have any inventory or employee
Hello James,
Is there a difference if I (foreign owned LLC) will engage into government contracts (product-based) and the model is dropship. Example I will supply some office consumables to a Federal office on a regular basis and product source is through dropship. Cheers!
I don't think the fact it's a gov entity matters
Hello! Thank you for the video. I and my wife have an LLC in the US and we are outside of the US and we're not legal residents. We sell Amazon FBA and on Amazon from a rent warehouse. From the video above I understand that we shouldn't pay taxes (income tax) in the US. Do I understand correctly? Should we file any tax reports to IRS?
Yes, you don't have to pay any taxes, and yes, you have to file an annual tax report.
Hello sir, I'm having a problem I live in the Dominican Republic and now I see on eBay probably due to a new policy that they have implemented, that all customers are required to pay taxes when they buy items, and as far as I know a foreign customer should not be required to do so if is not living in the country, can you help me with that?
Hi Hector, I suggest you schedule a free call with one of our associates by following this link calendly.com/supportjbcpa/30min
What about Shopify store owner who has LLC in the US, but has no employees or physical entity in the US? Does he have to file forms 1120 and 5472? How to prepare them?
Hi Mamdouh! Thank you so much for watching. Yes, if you have any reportable transactions, you must file your tax return forms.
Hi sir. im just wondering something. i live in Europe, Norway. if i start a dropshipping business and sells products to customers in USA. does that mean that i have to pay usa Taxes?. i am Not a USA resident or a USA citizen. Just wanna say that your videos are great with information. i wished you started this years back :)
Yes I wish I started years back too! You only have to worry about sales taxes, at this point I don't think income taxes would be an issue.
Hi James! Your videos already helped me a lot to create my LLC. I create one in New Mexico. So I'm clear now that is not necessary to pay taxes in the US if I do dropshipping from Argentina for example. but is it necessary for the forms 1120 and 5472 for New Mexico? IncFile is telling me "New Mexico LLCs are currently not required to file annual reports" I would like to confirm that with you. thank you in advance! you are the best
Hello Mario, for some states like New Mexico is it not required to file annual reports.
Hi Mario, If you have further inquiries, you can send an e-mail to support@jamesbakercpa.com
Annual reports are the other state filing... Form 5472 and 1120 is the IRS filing. Sorry, but unfortunately every foreign owned single member LLC have to file that.
P.S. I also formed LLC in New Mexico. And if you know how to file these Forms 5472 and 1120 by now, please share some views.
This “accountant” act like he’s a smart ass! The truth is every single person who makes US income will have to pay a minimum of 20-40% taxes based on the income he makes. Period!
Sir doing dropshipping in usa as an American resident, i have opened an LLC . If i apply for the reseller certificate will I have to pay tax? Please answer.
Hello there, sorry for the late response but if you need any assistance still, please contact us at support@jamesbakercpa.com!
For dropshipping from India, where would you prefer to open an LLC in Wyoming or Delware? And what are the cost differences between these two states?
Honestly there is not much of a difference in general, either or should be fine.
Just a note here, the primary reason for choosing these states is: they have no state income tax
No corporate income tax. LLC’s don’t pay taxes in any state
So you don't have to pay "VAT" neither if you areus LLC owner living as foreigner outside the USA. I know you said taxes, but does apply to the "VAT" too?
Hi The big Gorillas, thank you for watching.
I need more information to answer your question, please write to support@jamesbakercpa.com, so we can assist you. Have a great day!
When it comes to drop shipping store, US customers will buy if they see website is UK based LLC not US based LLC? Purchase decision??
Hi Harry! Please send your questions to support@jamesbakercpa.com so we can help you. Have a great day!
How about New Mexico LLC? Overall it would cost less money, and we would still not pay any taxes?
Sure
Hi there, thank you for your videos !
My question is : I am an EU citizen, could I open a LLC in US in order to create an EU Amazon account and have VAT number for EU countries ?
Thank you !
Not sure if getting VAT numbers is necessary
@@JamesBakerCPA For Amazon Germany for example, you need to have a VAT number
Just open a US amazon account then you dont need this
Every consultation is paid?
Hello Agustin, at the moment Jim has been doing free consultations, check out our description for the links if you want to schedule a consultation.
0:56 😂
😂
Hi James,
The UA-cam channel is great, so much good information in one place. Bravo :)
I am
writing to you from Munich, Germany.
I have opened a Shopify Store for the USA market and my goal is to import the highest quality products from China so that I do not have, for example, complaints and similar things.
I would like to ask you if I would open an LLC company anywhere in the USA, what should I pay attention to.
My goal is to abide by the laws offered by the USA for us foreigners who want to open an LLC.
Are there any things that are implied that must be done additionally? (Topic: Tax and the like I don't understand how it works)
Thank you in advance for the answers and I wish you many followers on your channel which is very high quality.
Thanks for the kind comment. To be honest watch a couple of the calls. Many of my callers do ecommerce. Can email us to setup a private call or use links in video.
Thanks and best of luck.
I'm confused...
Hi Howard. Why is that?
Now with the new Biden tax law, this will continue? I mean no paying taxes with a LLC as Non usa resident (not etbus)
Unless there is a court tax case that shooting it down nope.
I don't think so ... he has to change so many laws for that ... if you have another question you can send an email to support@jamesbakercpa.com and we will help you
@@JamesBakerCPA thanks really helpfull! Love your channel!
A Single-member LLC never pays a federal income tax regardless of the business activity. I don't see the point of this video.
Hi Richard, I appreciate your comment. However, a company may be subject to pay taxes, not only for the activity of its business but for many other reasons. My goal is to educate and share valuable content with entrepreneurs and investors.
@@JamesBakerCPA What are some of these many reasons a company may be subject to pay taxes?
Please actually explain, with valid citation of law, why a dropshippling- LLC pays NO TAXES.
Nothing in your video is valid or valuable. You are missing your goal.
Check my video with Mr Paulson it is in the description. If you need specific details for your situation you can contact us at support@jamesbakercpa.com I'll work to include more citations in my videos.
@@JamesBakerCPA Nice red herring! The misleading title ONLY applies to non-resident aliens with non-US source income.