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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 579
Experience:  10 years experience
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I am a foreign that have created a LLC in las Vegas Nevada,

Customer Question

I am a foreign that have created a LLC in las Vegas Nevada, It is a small business with an online store in which will sell Hand craft products from abroad to USA, Canada, Europe, Australia, Asia, etc. My lawyer is asking me to speak with a C.P.A. because I need to define how the LLC is going to be taxed. Can you help me with htis issue, what is your recommendation?
JA: Excellent. The Accountant can walk you through setting up an LLC or see if that's the best choice for what you want. Is there anything else the Accountant should be aware of?
Customer: Another question is regarding the salex tax the state of Nevada has, but if you are an online store without physical presence (No warehouse, no store) just drop the the products directly through DHL to each Customer. You need to pay sales tax from the customers whithin Nevada state, but not the rest of USA or Canada?
Submitted: 4 months ago.
Category: Tax
Expert:  Lane replied 4 months ago.

Hi,

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IF you don't elect a corporate form of taxation for you LLC, then you will be taxed as what IRS calls a disregarded entity.

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Further, if you have no physical presence in the US, there will be no (what is called) U.S. source income. Hence, you will pay no US income tax.

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(Selling to US customers DOES NOT create US source income. US source income is created when you are actually doing business IN the US... have a physical presence, such as an office, own business assets in the US, have a US payroll, etc.)

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And if you are not using a warehouse in NV then you don't have nexus for SALES TAX purposes either. You would only collect sales tax on sales to Nevada residents if you had some physical presence in the state

Expert:  Lane replied 4 months ago.

Please let me know if you have any questions at all, before rating me.

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And if you DON'T have other questions Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …would be appreciated!

Otherwise I receive no compensation for the work.

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Thank you,

Lane

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I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986