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Dropshipping and Sales Tax in the U.S

Dubsize

Active Member
Nov 9, 2017
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Hi,

I recently opened a dropshipping website. I decided to place it under my USA LLC (taxed as a C-Corp) registered in Delaware - meaning - i will declare income and expenses under my USA LLC.
I am personally outside of the U.S residing in a middle east country (not UAE) where I pay tax on the income of my regular USA LLC. Basically I invoice the profit of my USA LLC in the country where i reside, and I pay tax where I live. so far so good.

Since i am mostly selling my dropshipping products in the U.S i was wondering if I had to collect sales tax. My first intuiton, since i am based outside of the U.S and have no nexus in the U.S, is NO. no sales tax to collect. but wanted to double check here if maybe someone was in the same situation.

thanks !
 
You can see this link , hope.it helps.
https://www.avalara.com/us/en/learn/guides/state-by-state-guide-economic-nexus-laws.html
Basically from what I understand you need to have more then certain amount of sales or more then a certain amount of money charged in a single state to trigger sales tax.

Lowest is 100k so if you sell a product in whole USA and not go over the threshold you are fine.

Of course this is my opinion based on the arrtcile above.
 
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