International Sellers
Q: DO I NEED A U.S. ENTITY TO SELL IN THE U.S. OR COLLECT SALES TAX?
A: A U.S. entity is not required to sell in the U.S. or collect sales tax. We have many clients that keep their foreign entity and some that even operate as sole traders/proprietors. In some instances, opening a U.S. entity can complicate income tax requirements. However, if you want a U.S. entity, we can form it for you.
Q: ARE THERE ANY BENEFITS OF OPENING A U.S. ENTITY?
A: If you are working with U.S. suppliers, some of them can/will only work with U.S. entities. The reasoning varies, but a big one we hear frequently is the supplier is often limited because of territory and/or licensing issues with their supplier. In these instances, a U.S. address is generally also required. Not all suppliers have either of these requirements, but we can provide a U.S. address as well as a U.S. entity.
Q: IS AN EIN/FEIN REQUIRED TO SELL OR COLLECT SALES TAX?
A: Most states require an EIN/FEIN to register to collect sales tax. An EIN/FEIN is generally not required to sell in the U.S. However, some, but not all, vendors/suppliers may require it if you are making purchases in the U.S. Your logistics company/customers’ broker may also require it. We can assist you in getting an EIN/FEIN.
Q: IS A SOCIAL SECURITY NUMBER OR ITIN REQUIRED TO REGISTER FOR SALES TAX?
A: If you are a U.S. resident, you must generally supply one of the two. If you are not a U.S. resident, you do not have to have either. The states make it appear you do, and if you do not know the workarounds you may get stuck. The state is often difficult or impossible to work with unless you get to the correct person. The process takes longer and has more steps in some states.
Q: I DON’T HAVE A BANK ACCOUNT IN THE U.S. CAN YOU STILL HELP ME WITH MY SALES TAX?
A: We do not require a U.S. bank account to file sales tax returns, remit taxes to the states, or for any of our other services. However, the states and other companies that provide sales tax returns services often require a U.S. bank account. We actually open a segregated U.S. bank sub-account under our master account for the payment of your taxes.
Q: CAN YOU ASSIST WITH OR COMPLETE FORMS SUCH AS THE W-8BEN-E OR W-8BEN FORMS?
A: Yes, we have a service where we can assist or complete your W-8BEN-E or W-8BEN forms.
Q: COULD I HAVE MY MAIL FROM THE VARIOUS STATES SENT TO YOUR FIRM?
A: Yes, if we are filing your sales tax returns you may use our address as your mailing address.