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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 111655
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Considering launching DVDs is in a very small way via the

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Considering launching DVD’s is in a very small way via the internet (I think initially about 10 -20 sales per week). The sales would be in US $. The DVD’s would be sent out by a fulfilment house in the US.

As I am in the UK my merchant account bank has stipulated the US $ from sales be paid into my UK bank.
My questions are;

1) Would I need a US company and register with the US authorities?
2) Would I be taxed on the sales by the UK or US?
3) If I require a company would a company based in Delaware or does it not particularly matter?

I would like to ascertain the answers to these questions to see whether it is viable at the moment.
Submitted: 6 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 6 years ago.
If you are making sales in the US then taxes would need to be paid in the US on those sales and that means registering in the US as at least a foreign business entity and paying foreign business taxes on sales made in the US. Most companies do this by forming a US corporate entity, usually a limited liability company, and Delaware or Nevada are the states of choice lately because of the more favorable corporate laws. Both states require you to have a local registered agent for service of process and there are services available in both states that will not only set up your corporate entity but for an annual maintenance fee will provide an address and registered agent in the state. You would be taxed in the US on sales made in the US and have to file a US tax return for the business.


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