วีดีโอ

why

This was a great video. Thanks for the excellent information and well-delivered content. Exactly what I was looking for.

I'm not a U.S. citizen and have never been to the U.S., but I own a Wyoming LLC and run a Print on Demand business (a type of dropshipping). I create designs and promote products on my website and Etsy. When a customer places an order, their address is sent to Printify, which works with third-party print providers to print my design and ship the product directly to the customer. Do you think this setup avoids U.S. trade or business (USTOB) designation, and that it doesn't result in effectively connected income (ECI)? Essentially, I handle the design and marketing from my country, while third-party companies handle fulfillment.

This is bad math. You are ignoring the compounding of the tax savings and pulling the full amount out all in one year is a terrible idea.

Whether a Roth IRA or traditional 401(k) is better really comes down to your tax rate now vs. in retirement. If your tax rate is the same now and later, both options end up with the same outcome. If you're making millions now and maybe won't be when you sell your business, then a traditional 401K is the way to go.

Great video! in my case Im opening a e-comerce in Mexico (Im also from MX) and Im going to buy some of the products in the US wholesaler in VA. My question is: do i have to pay VA sales taxes? the products will be shipped to Laredo and then imported to MX. Thanks for your help.

I hate to say it, either you are very low IQ or malicious. Let's not even get to inventory effectively linked to shipments to customers is ECI or not, you can not do arbitrary management agreement like this, transactions between related entities has to be at arms length. What you are suggesting is tax fraud. And let's even assume in a parallel universe you can do it, okay, good. But did you put even little effort to this? UAE does not have double tax treaty with it, and because you concluded that US entity had ECI in US (highly doubtful), the 'management' of its operations by your UAE company is now tainted too as it is management of business activity effectively in the US, hence you'd deal with ~30% withholding tax with no way to reclaim it in absence of right tax treaty. While even good accounting firms may have different opinions on ECI, they generally have legitimate ways to operate in the framework of their interpretation. If you consider it ECI, you use arms length principle in your favor. Your lower tax company in right jurisdiction where you have substance will sell the inventory to the US c-corp to retain most of the profit in it, while being nice with all the relevant tax laws and norms. I don't know how you didn't understand this despite claiming to be an ecommerce accountant. As historically, imports (which occurs before inventory in 3pl) will have two counterparties, consignee and exporter. I hope you learn a bit before you start 'educating' others. And by the way, inventory becomes a problem when it is procured form USA and/or stores for a long amount of time, where you can't effectively link it to near future shipments/couriers. Or when most of your business is form the US and you are using same fulfillment center to ship it to other countries too. When these things add up, you clear create ECI in the US.

Great video! Some key points were highlighted that I hadn't heard anyone else discuss. Thank you!

Amazon FBA is NOT ECI because Amazon warehouse is not your warehouse and idk who told you that but if you adviced tax planning to foreign people saying they need to pay taxes if they do FBA then you cost them a lot of money because they don't.

Hello, this video is what I was looking for. I qualify for the Foreign Owned DRE as I will only use pod dropshipping and have no effectively connected income , my question is regarding sales tax. I will have my site on BigCommerce, which works similar to Shopify. Do I have to collect sales tax from buyers? How does that work? And if I have to collect, how can I calculate it?

Wow! Thank you so much! You've covered so many that answered my questions! You got a new sub here.

how about the sales tax? What if not charge it?

So, according to you foreign-owned DRE (Colorado registered two-(foreign) member LLC) doing Amazon online arbitrage has to file and pay taxes in the US as my inventory is on the US soil? Regardless of the LLC not having any fixed business presence (offices, warehouses, physical presence) nor dependant agents (employees)? A popular CPA TH-camr says using 3PL (prep centre) services for storing and shipping inventory gets you "off the hook" as regards paying taxes in the US. Guess you would disagree? My European home country has double taxation avoidance treaty with the US. How can I forecast the amount of taxes I'll have to pay to, I guess, the IRS? Do I pay even when reinvesting all proceeds into business growth? Tnx!

I have have LLC in Wyoming, I'm non resident i have never been in USA. I sell products to Europe my business has no connection with America no physical adress, I only use bank accounts and payment infrastructures. I will form 1120 and 5472 but do i have to form 1040-NR and pay taxes? If I receive a 1099-K form from stripe, should I fill out a 1040-NR? Does bank accounts make ECI? like wise,mercury business account

Contact dictionaries immediately, new word; happen-chance. So much more effective than happenstance. US English v English English.

i love you

Thank you for the video!!! We learn a lot from you! Thank you!

Hi I’ve watched all 3 videos and they are amazing I just have a question. So lets say you live in Ireland and you sell to the US Dropshipping from china and you register for VAT to get a return on the vat taxes you pay on your facebook ads. Do I then have to charge 23% VAT to my US customers and also still pay 23% VAT on revenue even tho I am selling outside the EU to the US? Or since I am selling to the US I don’t have to pay VAT but instead US Sales tax if so whats the percentage?

In the past, may artists became American to get away from much higher British taxes so there’s that…

-If- you can find a country that has lower taxes and that country also doesn't have a double tax exclusion agreement, you could just always forfeit your US citizenship at that point.

For most people you'll never get citizenship somewhere with lower income tax than the US anyways so whats the point

The US has certain reciprocal agreements with other nations with regards to taxes. I'm French and American with duel citizenship and run a consulting business where I work half the year in France and half in the US. The EU and US have an agreement to avoid double taxation between the two. My CPA handles my taxes and I have a tax attorney but I have been audited three times in the US and once in France and never had an adverse disposition. Essentially, what I earn in the EU is taxed through France and the laws surrounding corporate responsibilities their and what I generate in North America is taxed under my LLC in the US. Fun fact, in France the wealth tax on passing down wealth to heirs was abolished so all my American assets are set to be remitted to my French corporation of which my wife is set up to oversee and my son and daughters are the primary beneficiaries so even though the land, etc. is in America and will pass to my children, it is owned by a foreign corporation they will not have to pay inheritance taxes on the property.

How can I get 0% Cap Gains Tax?

You don’t know what you are talking about, most of the money brought back to the US was used to buy back shares, increasing stock price and value of management options. This tax cut added $8 trillion to the national debt.

do you pay these sales taxes when your getting your yearly taxes done with H n R BLOCK.. just declair your income from your seperate bank account of your on line store .?

Hello, nice content. I have a question and I hope you can help. I have a LLC in the UAE and an amazon account in the UAE as well. I'm trying to expand to the US and try open an Amazon US account over my LLC in the UAE. Do you see any issues with this structure? and do I have to pay Taxes except sales taxes? I'm intending to use the Amazon FBA, so the goods will be stored in the amazon warehouses.

Although the video is very good I still feel a bit lost, just opened my own eshop and I’m trying to have all my ducks in a row and don’t mess up. Deff will rewatch

Found your post interesting to watch. I can't wait to see your new videos soon. Good Luck with the upcoming update. This TH-cam channel is very informative and effective.

I am bit confuse here many CPAs on youtube told that non-resident with inventory in US Amazon or with 3pl service provider does not count trigger ECI since these both inventory locations are not our dedicated contractors/agent, they do not work for is exclusively. Same theory goes even if we are using US suppliers for dropshipping.

What if I transfer the profit from my Disregard entity bank to my personal bank account in United States? Does it has to be reported ?

Usually, I never comment on videos, but your video is so convincing that I am unable to stop myself from doing something about it. You’re doing a great job Man, Keep it up.

I would like to close my company in Italy, and since I live in the Philippines for more than 6 months a year, I would like to take tax residency in the Philippines, which has a territorial taxation system. I plan to open an LLC in the USA in Delaware or Wyoming, etc., to benefit from almost 0% taxation and then pay dividends into my Revolut account with tax residency in the Philippines. My clients are mainly in Italy and the USA. Can I do this? Will I only have to pay taxes to the LLC in this case? I sell digital products online!

Does using 3pls (auto ds ) count as having inventory in us

I wouldn’t recommend moving to Puerto Rico just for the Act60 tax benefits. There’s a ton of controversy surrounding them, and they are getting very strict with the rules to be eligible to be on Act60. Local Puerto Ricans hate it because its causing gentrification to the island with Non-Puerto Rican Americans moving in with no relation to the island and with more buying power buying up entire neighborhoods, public areas, and historical sites then going on to turn them all into private resorts, vacation homes, and Airbnb businesses. Because of all this a movement called the GringoGoHome movement has been growing big time and there have been many protests throughout the island to have Act60 removed. Also, many financial gurus and economists have said that Puerto Ricos Act60 is very likely to be taken down in the near future because its actually doing more harm to both Puerto Rico and the US economies. Channels like the Wealthy Expat and Nomad Capitalist have talked about it multiple times and explain why it’s a no go, and there’s better and safer places to move than to a US territory to follow a bunch of strict rules just so you can get away with paying little taxes. Congress has been demanding the Puerto Rican government take down Act60 because it’s losing the US billions of tax dollars and many people who are on Act60 are using it as a tax loophole to cheat paying taxes on the island by pretending to live there. Already over 100 people have been caught and arrested, and many more are under investigation by the IRS. The only reason Act60 is still up is because the current corrupt governor Pedro Pierluisi and his party are using it as leverage to pressure congress to make the island the 51st state. And they are open about this plan, when congress ordered them to take it down, Pierluisi said he’ll only do it if they make the island a state first. This year is the elections on the island and their party has been losing a ton of support because of all the corruption being exposed, and all the other parties are forming an alliance against them. If their party loses the governorship and they don’t get the majority in both house legislatures, then definitely Act60 is dead. All in all, I’m not saying Puerto Rico sucks, I just don’t recommend moving your entire life there just because you want to pay less taxes, when there’s a ton of issues going on in the island. You should pray no Puerto Rican influencers see this clip, if they do, your name is going to be blasted all over social media as someone who is promoting colonization, gentrification, and displacement of Puerto Ricans from their homeland.

SO.... as humble P.O.D. hustle, that doesn't live in USA, foreign citizen (no LLC), but use companies like Printify, to sell on U.S. platforms, do I need to pay taxes in US? can't find the answer. I appreciate in advance your reply,. Thanks

What about Wyoming or Alaska based llc ?

Hi, I had a question. Im based in the Netherlands and want to start an LLC in the US with the first method u used in this video so the "second tax structure". But I wanted to know what like the exact steps are that I am supposed to take legally so also how to get an EIN number and if that is required, so if you could explain or maybe have a link to a site that explains it all. Thank you!

Thank you soooo much! ⭐

Thank you very much, it's an obvious question no one's talking about in those overhyped print-on-demand and affiliate marketing videos. Was looking for such clear video and finally found yours. Does affiliate marketing business (when you just advertising another company's product, but do not own the product itself) owner, living in Europe, have to pay any taxes to U.S., while promoting U.S. company's products? I would say it also is a case of just having a foreign exception certificate and that's it. Am I right? Thank you a lot ❤

I recently had a great experience with Carolina Dozer! Way to go guys 👍🏻

Your video was great. However, there is still something I do not understand. I would appreciate it if you could help me. I am currently a partner in a multimember LLC established in Florida. Our company is physically located outside the US and we sell online through Amazon and Shopify. The Amazon platform has collected sales taxes in all states for us since our first sale and paid them to those states for us, but shopify has not started collecting sales tax because we still have not reached enough sales by following the threshold values according to the states. For this reason, since we did not have any nexus, we only received a certificate of registration from the state of Florida where we are established. In this context; In the state where we are established, we generated a total revenue of 2000 dollars in a total of 5 sales. For 1700 dollars, which constitutes 4 of this, amazon itself collected approximately 50 dollars of sales tax and paid it to the state on our behalf. Since we had 1 sale of 300 dollars from Shopify,we did not collect sales tax because we were below the threshold value. Now how will I enter the values of "gross sales", "exempt sales", "taxable amount" and "tax due" when filling out the online form during the sales tax filling. If you can help me with this example, I will fully understand the sales tax issue. Thank you very much in advance

hey, I never seen this information about the 31 days before, instead this is what I found: Substantial presence test You satisfy the substantial presence test, and are therefore treated as a resident alien for a calendar year, if you have been physically present in the United States on at least: 1. 31 days during the current year, and 2. 183 days during the 3-year period that includes the current year and the 2 years immediately preceding the current year. To satisfy the 183-day requirement, count: 2.1 All of the days you were present in the current year, 2.2 One-third of the days you were present in the first year before the current year, and 2.3 One-sixth of the days you were present in the second year before the current year.

if my physical nexus is Texas, and will definitely not be in the $3m threshhold at the beginning or even the 200. Does it mean I only pay sales tax in Texas for those customers who are from Texas? But still collect sales tax for all customers?

Hey awesome content, I just want to clarify does that mean sales tax does not apply to foreigners and simply we just need to file the annual 5472 and have separate business bank account etc

Great video, what about sales tax? is it the same for people who live in Europe or do we in Europe have to pay sales tax after the certain state's threshold?

I extremely like the video, man. Very helpful and informative. Thank you very much. It is presented so well too. Great, positive work.

Found your post interesting to watch. I can't wait to see your new videos soon. Good Luck with the upcoming update. This TH-cam channel is very informative and effective.

I just bought your course! Super valuable. Still diving in, but quick Q about piercing the veil Can I use the Amex membership points from my business credit card towards anything? or is it strictly for business what I choose to redeem my points for?

I am having such a hard time understanding QBO and I know it supposed to be easy, i have my store on shopify, still small business and I did the integration with shopify but to be honest I dont know if thats better or worse cause now is even more confusing. I am stress about this as I want to do things right but as a small business just starting resources are limited and cant afford an accountant!

This video is SO clear, thank you!!! I am a Print on Demand Shopify Seller. I live in Florida. By the end of this year I will have about 4k in shopify sales, shipped from about 3 different PODs (NY, CA, MI). Should I register in Florida before the end of this year and pay sales tax on my Florida sales only? I DO file income tax for EComm because of Etsy... TIA : )