Q: What is the best US state to register an e-commerce business on platforms like Amazon, considering I am a non-resident ?
I currently reside outside the United States.
The company's operations in e-commerce will involve selling various products through platforms like Amazon and utilizing dropshipping methods.
I am seeking guidance on the following points:
Legal considerations: Such as suitable types of business entities for non-US citizens, liability protection, and intellectual property rights.
Tax implications: Including state sales tax requirements, income tax considerations for non-resident aliens, and any potential tax treaties.
Regulatory requirements: Especially for non-US residents in company registration, compliance with federal and state laws, and any licenses or permits required.
Obtaining a physical address for the company and opening a traditional bank account.
My goal is to streamline company operations, minimize tax exposure, and ensure compliance with all laws and regulations related to e-commerce and dropshipping activities.
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A:
To register an e-commerce business in the US as a non-resident, Delaware and Wyoming are popular choices. Delaware is known for its business-friendly laws, strong liability protection, and no sales tax. Wyoming offers similar advantages and has low ongoing fees, making it another attractive option.
For legal considerations, forming a Limited Liability Company (LLC) is often recommended due to its flexibility, limited liability protection, and ease of management. As a non-resident, you can own an LLC and have intellectual property protections in place. Ensure you have a registered agent in the state of registration to meet legal requirements.
Regarding tax implications, you generally won't be subject to US federal income tax on earnings from international sales, but state taxes may apply depending on where your customers are located. It's crucial to check if any tax treaties between your home country and the US can provide benefits. Additionally, you'll need a physical address in the US, which can be obtained through mail forwarding services, and opening a bank account typically requires visiting the US, though some banks offer options for international entrepreneurs.
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