Simple fact? MOST of online business gurus are Americans & NONE of them knows how to get started selling online if you live outside of the United States.
This course explains exactly that.
I cover everything from the small but annoying tasks such as verifying your US PayPal over to the heavy stuff, which is how to open up a US bank account from abroad.
Video-by-video you’ll learn how to:
– get an address in the United States for processing returns
– get a US phone number to verify your US PayPal
– set up your company in the United States
– open up your American bank account from abroad
I’ll also touch on accounting & taxes and give you my best advice to tackle both.
I promise this course will save you a TON of time and a TON of money, as I have personally spent multiples of this course price tag on consultations with tax attorneys and accountants.
This course is best suited for anyone and everyone who bought a dropshipping course that doesn’t explain the above (and I don’t know of any course that does).
IMPORTANT: You will not be able to open a bank account remotely if you are a resident of any of these countries: Belarus, Burundi, Central African Republic, Cuba, Democratic Republic of the Congo, Iran, Iraq, Lebanon, Libya, Nicaragua, North Korea, Somalia, South Sudan, Sudan, Syria, Ukraine, Venezuela, Yemen, and Zimbabwe.
Whether or not you need a virtual address largely depends on the suppliers you'll be working with, and if they already have a return address or not (in which case you could simply use theirs). You can easily start ONLY using your registered agent's address, and then move up from there.
Please note that if you want to set up a virtual address, you'll be asked to verify your identity and provide a NOTARIZED USPS form 1583 (required by law). As a foreign national and non-resident, you need to contact an online notary service to get this done.
You will be required to provide a Foreign Passport and Utility Bill (address must match the address on the form). You can use company called Notarize for example (needs to go through AnytimeMailbox - if it's uploaded as a personal document, SSN will be required).
A way to save the $250 on getting your EIN :
There is an option (more hands on) to get the EIN number yourself without paying an agent to do it.
If you are a non-resident for U.S. tax purposes, you do not need an ITIN or an SSN to apply for an EIN for an entity.
The online application process is the fastest, but this system is not available for nonresidents.
You need to download and fill out a Form SS-4 for your company and name yourself as the responsible party. In the field where it asks for your "SSN, ITIN, or EIN" enter the word "FOREIGN" to indicate you are a nonresident. Mail or fax the completed form to the IRS and wait for them to assign your EIN. Alternatively, you can contact the IRS via phone and fax the form to the representative once they provide you with their dedicated fax number.
If you are already selling with a PayPal registered in your home country, you'll want to create a brand new PayPal Business Account in parallel. You can have both and it's totally fine. Once you have your US PayPal set up, simply replace the old one on your eBay account.
To give you as much information as possible before you start, I've added this video giving an explainer of the different terms and FAQs.
Your SMLLC (single member limited liability company) is considered :
1. an individual
If asked to submit a form, you shall submit a W8-BEN
2. a disregarded entity (and in most cases a hybrid disregarded entity)
In the active business income regime - you are NOT ETBUS, therefore you are NOT subject to US business income tax.
e.g.: active business income, ebay/amazon/shopify sales
In the passive regime (dividend income, royalties, etc.) your income is subject to 30% tax withholding. This percentage can be potentially decreased by an applicable treaty - you country may or may not have a treaty to decrease this amount.
e.g.: royalty payments like Merch by Amazon commissions, Kindle sales, etc.
Some platforms require it, some platforms don't.
If they do - you can either - obtain an ITIN, or change your LLC into a corporation and become a business (instead of an Individual, and only provide EIN) - if you do the latter you will need to start paying tax in the US.
For your LLC
DON'T FORGET TO SUBMIT FORM 5472 before April 15th each year - penalty for NOT doing so is $25,000.
Form 5472 is sent along with form 1120.
"The Form 1120 for a foreign-owned U.S. disregarded entity only provides basic information on the disregarded entity to the IRS. The Form 5472 provides more detailed information. The main purpose of the form is to report on any transactions between the owner of the business and the LLC.
Because there is no tax due, you should have no fear of filing these forms. But the penalties for failing to file them are very harsh. The penalty for failing to file an accurate Form 5472 on time is $25,000."