My Business situation…,

[Pmpm267]

Hello,

My business partner and I are from St.kitts born and raised. We have a question, we plan to set up an e-commerce store for the US market. We will be utilizing 2checkout as our payment processor. I know we will have an nexus since our manufacturers are based in the USA etc.. Here is our question: Since our business corporation is based outside of the US and we are not us citizens, will we need to be any corporate tax or will it be just sales tax to the various states?

Thanks!

 

[Sols]

This is very hard to answer because the US tax code is such a mess and the answer might even vary by state, depending on how strong your ties to the US are. There is also a difference between what some advisers may say and what's actually going on.

For example, if you set up an LLC in the US, do business through it, and then simply pass on the profits to yourselves personally as US non-residents without declaring or paying any US taxes, you would be joining a large number of other business owners doing the same thing.

But if you take the same structure to a tax adviser, they would probably tell you that you should be paying tax.