Non-resident alien planning to start business and have question about USA taxes

**johnnyy** · 06-15-2010 01:17 PM

I'm non-resident alien who wants to register online store business in USA and use suppliers who support drop-shipping. My business starting capital is low and i don't plan to earn much at the start so wouldn't like to spend a lot of money on accountants. But i have no idea what taxes and how would i need to pay to USA. Can you give an advice on some non-expensive accountant online services or maybe there's other options?

**Manny4life** · 06-15-2010 10:03 PM

Here's my own two cent; unless you have any form established "physical presence" in a state, the you don't pay any form of taxes to either state. Customers are often responsible for paying the taxes within their state borders and it all depends, no state wants to go after you because you purchased a shirt from Target.com, but they sure will come after you if you purchased a car, boat or some kind of valuable asset. What it means that certain internet sales are subject to taxes. Again if Target.com has a warehouse in like in the North area like NY and MD which most do, then all customers residing within the states of NY and MD who are buying online will pay taxes but I'm in DC, I don't. That is the "established presence" definition. The obligation of paying sales tax falls on the buyer and not the seller because internet commerce isn't regulated, so it's a tax free zone. Remember that most often you would taxes on Target.com or Wal-Mart.com because they have warehouses in most states to cover demand, but a small business like you, don't need an established presence, your tax issues u need not worry about about but since you're drop-shipping, that's a little complicated so consult a small business tax accountant/attorney and hey you can post an ad on craigslist.com and find professionals who can answer your tax question. Better yet use virtual services where people bid for pennies to few dollars to give you advice for cheap.

**johnnyy** · 06-16-2010 09:41 AM

Originally Posted by Manny4life

Here's my own two cent; unless you have any form established "physical presence" in a state, the you don't pay any form of taxes to either state. Customers are often responsible for paying the taxes within their state borders and it all depends, no state wants to go after you because you purchased a shirt from Target.com, but they sure will come after you if you purchased a car, boat or some kind of valuable asset. What it means that certain internet sales are subject to taxes. Again if Target.com has a warehouse in like in the North area like NY and MD which most do, then all customers residing within the states of NY and MD who are buying online will pay taxes but I'm in DC, I don't. That is the "established presence" definition. The obligation of paying sales tax falls on the buyer and not the seller because internet commerce isn't regulated, so it's a tax free zone. Remember that most often you would taxes on Target.com or Wal-Mart.com because they have warehouses in most states to cover demand, but a small business like you, don't need an established presence, your tax issues u need not worry about about but since you're drop-shipping, that's a little complicated so consult a small business tax accountant/attorney and hey you can post an ad on craigslist.com and find professionals who can answer your tax question. Better yet use virtual services where people bid for pennies to few dollars to give you advice for cheap.

Thank you for your reply. What do you think about federal income taxes ? Should i pay that tax if my earning isn't high?

**hockey97** · 06-16-2010 02:12 PM

Well the guy above is referring to sales tax. That's only subject to where you register your business name etc. So if lets say you registered the name in New york then any customer in New York would have to pay that states sales tax. You would have to collect this since you would need a resellers license if your selling products online. The resellers license is nothing but for the state to know that your selling product and are subject to that states sales tax.

Now for your income tax you don't need to file any taxes. As long your income isn't more then 2,000 bucks.

If you make anything above 2,000 you will be subject to federal and state income tax.

You don't need accountants unless you registered your business as any corporation type and is treated by the IRS as a corp type business. This means you can issue shares and stuff those type of things you need to have your income statement and balance sheet attached to your tax forms.

So in your case you don't need accountants. You may only need them to do your taxes if you have no clue about the tax laws.

Most of your tax questions can be answered at the IRS.GOV website.
You can ask them for free and they can answer most of your questions about taxes.

Hope this helps any.

**labejobwork1** · 01-04-2012 10:02 AM

You don't need accountants unless you registered your business as any corporation type and is treated by the IRS as a corp type business. This means you can issue shares and stuff those type of things you need to have your income statement and balance sheet attached to your tax forms.

So in your case you don't need accountants. You may only need them to do your taxes if you have no clue about the tax laws.