LLC US for dropshipping as non resident - zero taxes or not? I need a clear point on this.

[ciccino]

Hello, reading around 50% of people say it's a tax-free solution, 50% say you will have to pay taxes, I need a clear point on this

My situation is the following, I'm from Italy selling info products, my customers are 80% from US, I have nothing in US

Also what's best for my needs, WY, NM or DE?

Thank you

 

[Fothermucker]

Do you need to pay tax? Well the answer is no (in the US) and ... yes (in Italy).
Under certain circumstances (If you have no offices, staff or warehouses anywhere in the US) you won't have to pay taxes in the US.

US law states LLCs are pass-thru entities, meaning company profits = your profits.
How other countries treat US LLCs is still contoversial.
Italian Taxman might view your LLC as a separate entity and thus subject to italian corporate tax.

Even if you avoid that you would still have to pay taxes to Italy on the personal level when you cashout your wage or dividend from the company to your italian bank account,

 

[johanne2020]

I have a US LLC from Delaware and I'm not a US resident.
I don't know about Italy but for the US, you won't have to pay any taxes. However, you have to collect sales tax if you exceed 200 transactions/year and /state or 100,000$ revenue/year and /state.

 

[ciccino]

I have a US LLC from Delaware and I'm not a US resident.
I don't know about Italy but for the US, you won't have to pay any taxes. However, you have to collect sales tax if you exceed 200 transactions/year and /state or 100,000$ revenue/year and /state.

I may exceed 200 transaction a year in some US stares, how much is sales taxes then? Thank you

 

[johanne2020]

No idea since it's different for each state. Other sellers usually rely on Shopify or other checkout tools to calculate it for them otherwise it would be a headache. Anyway, you just have to collect them and then pay them back to the appropriate state.

 

[giggitty]

I have a US LLC from Delaware and I'm not a US resident.
I don't know about Italy but for the US, you won't have to pay any taxes. However, you have to collect sales tax if you exceed 200 transactions/year and /state or 100,000$ revenue/year and /state.

Does this apply to tangible products being shipped, or also to digital services, e.g. a monthly-subscription Web service?

 

[berseker]

You don't need to pay the IRS anything as long as you don't have something that qualify as a 'nexus' contract with a warehouse, office rent, etc... but you still have to file the form 5471 each year to the irs even if you owe them 0$ or you will get 25k$ fine, for state tax just make your LLC in wy it's the best one imo

 

[emyz101]

Does a subscription to https://www.inventorysource.com/ qualify as a 'nexus' contract with a warehouse?