Thanks for everyone who attended! If you have specific questions, you can reach us firstname.lastname@example.org.
Here are some of the most common ones we got:
Is my country on the list for Amazon US sellers?
Here is the list: Amazon US Seller Supported Countries
Does my country have a tax treaty with the US?
Here is the list of US tax treaty countries: IRS Tax Treaty List
Can I get a reseller permit without having a US entity?
Yes! You don’t need to be a US entity. It may make some things easier, but it’s not required!
What bank do you recommend for foreign owners who can’t physically visit the US to open an account?
The only bank I am aware of currently where you can open an account without visiting the US in person is Mercury.com Bank.
What type of Entity should I be?
In the US, many of our clients benefit most from being an S Corp. The tax savings are better there than with other entity types. But it depends a bit; if you are planning to have investors, an LLC may be better. Same goes for if you own real estate in the same entity. By and large, however, an S Corp is the best choice. If you are already an LLC, you can still choose to be taxed as an S Corp and benefit from those tax breaks. If you have questions, just ask us!
If you are not a US citizen, then by far the best choice is to be a single member LLC. In this case, if you are from a country that has a tax treaty with the US, you will pay no taxes in the US, only in your home country. You still need to file, but opening and maintaining the entity is easy. A C Corp or Multi-Member LLC are other options, but more complex and often with different tax implications. If you have questions about your specific situation, email us for help!
What state should I register in if I am a US resident?
Pick the state you live in. Picking any other state will just mean you have to register in two states, and you will have the extra cost of doing that with no advantages. You don’t get out of state income taxes by registering somewhere else; it goes by where you live.
Why pick Wyoming if I am not in the US?
They have the lowest cost, easiest paperwork and excellent privacy options. Other popular states are Nevada and Delaware, but both cost substantially more than Wyoming. The least desirable and most expensive states are California, New York and New Jersey. If you don’t live in the US and aren’t planning on having a physical location here (we’re not counting 3PLs) then you might as well pick the best state for this, which is Wyoming.
Who do you recommend to set up a Wyoming Single Member LLC for foreign sellers wanting a US entity?
This is who we recommend: Wyoming Agents
Does my entity need a registered agent?
Yes. Every legal entity is required to have a designated person in the state where it is registered who can receive legal documents. If you are a US citizen, and registered in the state where you live, you can be your own registered agent and save the cost of using a service. If you live outside the US, then you need to have a registered agent service in the state where you set up your entity. The cost is usually pretty small for this.
How do I get an EIN?
An EIN is the ID for a legal entity. You get one by applying to the IRS on their website. If you are a US citizen and have a social security number, you can get one instantly online. If you are a foreign registrant, you need to fax in your application. It normally takes 4-8 weeks (and may take longer now with the current COVD-19 situation) to get your EIN assigned. Without an EIN you can’t get a US bank account and sometimes not a reseller permit.
Do I need bookkeeping with my new entity?
Yes. You are legally required to keep books. We can help of course, but if you don’t go with us, be sure to get them done! Aside from legally needing them, doing it right helps you pay the right, lowest possible tax, helps you know how to optimize your business for profitability, and if you decide to sell, you’ll get a much higher valuation with good financial records.
When do I file taxes?
If you have an S Corp or Multi-Member LLC, the deadline is March 15th. If you have a single member LLC, or C Corp the deadline is April 15th. You can file an extension, which is automatically approved for 6 months, but you still have to pay any taxes owed by the original due date. The extension is only for the filing. If you don’t owe, or have a loss, then filing an extension is no problem.
Do I file taxes if I had no activity, or a loss?
If you are a US owned business, not filing if you have a loss or no activity is not as big of a deal. It depends a bit what state you are in as some states have more severe penalties than others. If you are a foreign owned business, however, and you fail to file, even with a loss or no activity, the penalties can be severe. So don’t miss your filing deadlines even if you don’t owe any taxes!