Dropshipping & Taxes: The Ecommerce Accountant Explains ALL

How I create 6-figure businesses selling ONE random product I never see or touch 👉👉👉 www.Simplified...
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Get a FREE 2-week trial of Shopify to start dropshipping right now!!! 👉👉👉 www.shopify.co...
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BEST Aliexpress Alternative silkroad.clqtr...
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Shop My Clothing Brand Simplify Apparel HERE 👉👉👉 www.simplifyap...
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My life story was featured by the biggest dropshipping company ever, Oberlo! Read the article here (it's a crazy story!) 👉👉👉 www.oberlo.com...
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TheEcommerceaccountants.com
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Instagram: / scott.hilse
Twitter: / scott_hilse
Facebook: / scotthilsedropshipping
LinkedIn: / scott-hilse-555182127
KZbin: / scotthilse
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Hey all! My name is Scott Hilse, I am here to teach you dropshipping, or should I say, Simplified Dropshipping! Basically what that is is One Product Dropshipping, which is my speciality. I teach you facebook ads, digital marketing, and all things ecommerce. I’m also known for my endorsements from figures such as Tai Lopez, Oberlo, and Shopify. I used to be a busser and an uber driver, but now I have obtained location neutral income automation and helping others too! In this video i show you my house in a house tour in los angeles california where me, faiz, mikey kass, and sebas bedoya moved to.
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Check out some other videos by me, Scott Hilse! :D
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Day In The Life of a Pro Dropshipper | Scott Hilse
- • Day In The Life of a P...
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A Trip With A Pro Dropshipper | $5k LA Weekend + 1st Meetup | Scott Hilse - • A Trip With A Pro Drop...
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Oberlo Dropshipping with Scott Hilse - • Video
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One Product Dropshipping: Why It Works | Scott Hilse - • One Product Dropshippi...
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$210,000+ Dropshipping ONE Product: My Life Story | Scott Hilse
- • $210,000+ Dropshipping...
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Facebook Ads Vs Influencers (+My $5000 LOSS) | Scott Hilse - • Facebook Ads Vs Influe...
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My WORST Dropshipping Mistakes (LOST THOUSANDS) | Scott Hilse - • My WORST Dropshipping ...
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The TRUE Cost of Dropshipping | Scott Hilse - • The TRUE Cost of Drops...
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Here are my articles and features!
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Oberlo article - www.oberlo.com...
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Entrepreneur Article - www.entreprene...
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Everipedia Article - everipedia.org...
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MSNBC Article - editors.people....
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Medium Article - / interview-with-shopify...
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Buzzfeed Article - www.buzzfeed.c...
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The NYJournal Article - www.thenyjourn...
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Famous Birthdays - www.famousbirt...
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The Outline - theoutline.com...
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TechMoneyTalks Podcast w/ Scott Hilse - / scott-hilse-profession...
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Apple Crider’s Podcast w/ Scott Hilse - player.fm/seri...
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Culture Roundup: Hustle Hard - hackernoon.com...
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Growth Hackers Article - growthhackers....
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Spokeo - www.spokeo.com...
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Whitepages - www.whitepages...
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Intuit - community.intu...
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MyLife - www.mylife.com...

[@ScottHilse]

Consult with Chris and/or learn more about how to handle dropshipping and taxes on your own here! 👉👉👉 ecommaccountants.krtra.com/t/8uZgRYIrE9rK ✅My FREE Dropshipping Course👉 www.SimplifiedDropshipping.com/ ✅Shopify FREE 14 Days + 1 MONTH for $1 ! 👉 shopify.pxf.io/Yg4dOR 🔴 Follow my podcast! kzbin.info

[@xenoserie4653]

Thank you for the great video, very helpful!! I live in germany but I sell to the USA, so I don't have that physical presence in any state. I hope i got this right... but do I only have to collect and pay sales taxes if I hit this "significant revenue" in a specific state? And is the "border" for that amount the 100k he mentioned?

[@neuroscience5994]

What about sales taxes?

[@fullstackmarketing247]

Lol I had to comment again. This is seriously the best drop shipping video I've seen in a while. I wish the answer to these questions were available years ago.

[@infoaccountants8896]

Hi Xeno, you have it almost entirely correct! You have to think about Sales taxes in 2 steps - 1) Physical Presence and 2) Economic Presence. Every state has it's own rules, but a trick that we recommend that people use, is if you have over $100K in sales or 200 sales transactions in any particular state, you are at risk of having sales tax nexus in that state and should consult with a professional. Hope this helps!

[@xenoserie4653]

@@infoaccountants8896 Yes that helps me a lot, thank you! But just to get you completely right, with 200 sales transactions you mean just 200 sales, correct? So it would only be the 100k if I hit that under 200 sales with a very high ticket product?

[@Deserboy]

Finally someone talking about the other part of dropshipping... All youtubers talking about the money they made from dropshipping but none of them talking about taxes and stuff.. Thank you for the great video!Really helped me out! +Would you make a video on if i should have a company to start my own dropshipping business because in my country you always need to pay taxes and in order to pay taxes you need a company on your name.I am super confused on how that works so it would be pretty helpful to see how to do it and if you have a company too..

[@manaphyonfire]

This is one of the most informative videos. I've seen in so long. There aren't any youtubers breaking it down like this.

[@ecomaccountants]

glad you enjoyed the video!

[@EliRichardsonofficial]

Awesome video Scott. I wish there was more content made around these topics. Its more important than “oh look 5 more winning products”.

[@Darksagan]

Although I am not worrying about taxes yet I know for sure I am gonna have to come back to this video. Great interview and content.

[@shahparas007]

Chris’s firm E-commerce Accountants is the best of best for your e-commerce business.

[@DRANT1S]

Got your course on black friday, and I've already gone through everything. I'll start my store up soon and keep you updated 😁💯

[@JamesHardy]

Hey do you have an update 3 weeks later?

[@DRANT1S]

@@JamesHardy Heyy, unlike most people who dont give an update, I will give you some. Dropshipping works 100% you just have to be patient, YOU WILL LOSE MONEY IN THE BEGINNING. Once you accept that fact, making money after your pixel gets smarter is easy. So please do not turn off ads right away just because you dont see sales. Study the ROAS and know your BREAK even ROAS because an asset might make you 0 on days 1-3, but then on day 4 make you 7 sales and in total you will be profitable but if you had turned it off on day 3, you will be at a loss permanently. Withing my 2-3weeks I have made between $1200 - $1800 I'll have to check my computer again to know the exact number but its within that range. HOWEVER, I will soon be shutting down my store and leaving this space. Here is why: Personally, I want to make money and go to sleep knowing that I did not rip someone else off or leave them feeling ripped off. Within dropshipping, NOT SAYING THIS IS WHAT SCOTT PREACHES because it isnt. This is just skills I acquired over the past 2 months about dropshipping. It all seems to be about stealing "competitors" ideas and improving it and kinda exploiting your customers emotions to sell them stuff. AGAIN, this is just me and my personal preference. How I was raised and how I view things ethically. I would rather find other means to make money and if I dont, I am happy with my software engineering career. Still only 21 years old. But if you wanted validation or proof that dropshipping works, it absolutely does. Goodluck with it :)

[@DRANT1S]

Just to add on to my comment, this issue about being ethical is ONLY APPLICABLE during the initial stages of dropshipping because being honest, this is when we all wanna make money and if for example a customer wanted a refund and their reasoning is something petty or minor, doesnt even have to be our fault, we wouldn't wanna do through the refund process. Probably just ignore them because we dont want to take that extra cost (reasoning being we dont have the capital or budget to be Mr. Nice Guy ethical company lol) so the customer gets screwed over, and we move on with their money. But keep in mind, that is someones money that they worked hard for. But if had say 30,000 to begin with, and i know i can offer refunds easily and make sure 95% of my customers are happy, then i would return or stay in the space.

[@JamesHardy]

@@DRANT1S interesting.. Thank you for the in-depth response!

[@tubieproductions8206]

DRANTIS マ ダ ラ how much money did you lose in the beginning when starting

[@Scuf]

Hey Scott, for sure get yourself a second microphone/a couple of mic stands. Great piece of content

[@r.m.chastain.creative]

Hey Scott, when it comes time could you make a video on how to prepare for Chinese New Year for drop shipping from China??

[@WuxonnyTV]

Nobody dropships to china dude

[@r.m.chastain.creative]

MasanLeba that’s why I said “from China”

[@vasrajasekar]

@@r.m.chastain.creative : lol

[@ColeMcIsaac]

Try using US-based products on Aliexpress. Faster shipping and happier customers. The only downside is the profit margins.

[@suroorbaig7717]

@Ryan if you’re getting good amount of orders in a day then you could order in bulk before Chinese New Year.

[@oliverpedersen2328]

If it isn't already, it should be in your podcast. This is golden, and you could follow by listening - no visuals needed

[@ecomaccountants]

Chris is scheduled to be a guest on Scott's Podcast this winter!

[@theguyjules]

I guess you’re from Denmark. Have you started dropshipping because I’m rly confused about the Tax and VAT still.

[@ranjetdo]

great was thinking about this issue thanks

[@infoaccountants8896]

Glad that this video was helpful!

[@vonkunstler884]

Explains ALL! *Gives one example of how tax works* *Plugs Academy*

[@roddipiper2241]

Went from 1200/month in passive income to 30k in profit in a month after using your course, so i definitely needed this. Thanks

[@infoaccountants8896]

Glad to hear that you're scaling in such profitable way! Please consider scheduling a consultation call via the link that Scott posted above!

[@christianrivera6808]

Indeed - keep crushing it! 💪🏽💪🏽

[@abdulazizbakker7065]

@@christianrivera6808 mashallah tbark allah alhamdulillah inshallah better astagfirullah

[@abdulazizbakker7065]

@@infoaccountants8896 mashallah tbark allah alhamdulillah inshallah better astagfirullah

[@theRealestBarbieD]

Thank you so much for asking the right questions and thank you to Chris for elaborating on this important topic 🙌

[@selfhelpworld]

Happy the S corp filing for LLC was mentioned.

[@mohamadmeski5720]

I was researching this topic extensively for the past week and Chris is the first person to give useful and actionable of advice. So THANK YOU for that! My question is: Any advice or useful information about E-commerce and taxes in Canada (Toronto-Ontario specifically)? And would the NEXUS tax still trigger in the USA if my company is based in Canada?

[@alexanderat8131]

Thanks alot new to this channel finally someone that would gave me clear understanding about tax i am about to start ecom business and i want to make sure tax dont kill me on the end of the year and make my self poor again

[@masonmazzaro4126]

I bought your course 3.0 last year and have a store doing $1,000 a day. Thanks for the help

[@joshuaprimrosearchives4704]

Mason Mazzaro you have ig?

[@masonmazzaro4126]

Can you do a video on dropshipping agents?

[@cma7427]

Cheers Scott I really needed this advice and information

[@phptaskforce]

Awesome, just what I needed! Somehow, nobody is talking about this topic. Thank you!

[@EvildoomsayerChannel]

Very powerful video! Thank you so much! :)

[@kylecrump2995]

Thank you Scott, quality video with a ton of good information. Keep killing it

[@donaidtrump3385]

Forget about Ellen & Gary Vee . . . Talkshows in the Future . . . Be Like : Talk With Scottie, Bowling with Bowles, Planning with Planes

[@moneyman2274]

Great video!! But, It seems the info is solely directed towards entrepreneurs based in the US. I've never even heard of an LLC!! What do us as non US citizens do? What would the tax implications be of an individual based in South Africa for example, drop shipping world wide? One question of many!!

[@brandonosamba8639]

yo, do you still do dropshipping?

[@quentin2578]

Did you find an answer?

[@nadyapecherskaya1459]

Awesome job guys! I SOOO agree with Scott, so much bs everywhere and no concise to the point answers. Would love to see more tax/accounting videos!

[@jacobluker5531]

With all that money you'd think he'd have a better microphone

[@mikasa748]

Lol

[@jazminarodriguez8348]

I always se the videos of how i made x amount of money. Yet they film in tiny rooms with clothes that look from the free market. And it doesnt feel right in my head

[@AnonymousAnonymous-pp5of]

I'm not gonna judge. This video is valuable

[@TheWorldnUs]

Could probably pick up a cheap one off Ali Express 😜

[@braaap56]

Can’t express how much these videos help us! Thanks Scott 👊🏼

[@richardjacksxn]

Epic video my man, keep up the GOLD content!

[@DreamFirms]

Great discussion, thanks for sharing your knowledge!

[@mpapillion100]

Thanks for adding this one Scott! Simplify!

[@squarehot3754]

great video. No one else is putting out value like this. Thank you!!

[@claudiamichielini933]

Great video AS ALWAYS ! Thank you Scott amd Chris !

[@LMays-cu2hp]

Thank you for sharing this information.

[@MrEcomm-lw7mf]

How does this not have more like. Like most / was wondering this - again 👏🏽 🙏🏼

[@rileyc8744]

Super informative video! I just started my drop shipping business. This is helpful information about taxes that will relate to my business

[@myleg1012]

any luck?

[@Lalalakenzzie]

This is the best video ever. I think people get so caught up with net income they forget about tax strategy. I apologize if this is a ridiculous question but if I have multiply eCommerce stores/ brands, do I need a new LLC/ S-Corp for each brand? Thank you very much for your time Chris and Scott thanks for the video brother!

[@ecomaccountants]

I like and agree with Ibraheem's answer!

[@josephine5809]

Good video. How much profit from each sale do you recommend saving per sale, especially if your profit margins are less than 50%? Like would 1/3 profit of the profit from each sale be a reasonable amount to put aside? Thanks

[@joshualawrence9539]

Very informative video for all levels of dropshippers! Chris knows his sh*t, very knowledgeable, best in the business for your all tax needs, be sure to grab the tax breakdown course.. information worth thousands for under 100 bucks you won’t be disappointed!!

[@ecomaccountants]

Thank you sir!

[@charlyenkhbold239]

Nice content Chris ! Thanks a lot !

[@ecomaccountants]

Glad you ejoyed!

[@edhiett]

Thank you Scott and Chris, killer content! 🔥🙂👍

[@braaap56]

Keep doing these collabs 👏🏼🔥🔥🔥

[@easytechpartsltd6217]

Great stuff Scott 👍🏽

[@whitneyhester5331]

Where is his link to his page?

[@vasrajasekar]

Great Value, Scott :) Thanks for this type of content !

[@heberramirez7685]

biggie n tupac of the e comerce

[@josiahneill4880]

Now this is VALUE! Scott in the clutch!

[@Niko-iw1sr]

Still an underrated video

[@mrb6309]

What if your physical presence is in Puerto Rico, and you're making sales on the mainland. Do you have to pay sales tax in each state where you make a sale? Federal Tax?

[@mikenobile3017]

Thanks Scott great video !!

[@summerrblu]

How does one who haven't even started yet but ready and rearing to go or someone who not making 30k monthly work with you? How does someone like that gets assistance from you, or its a case you don't really grow with beginners but someone who is already well established and looking to scale even larger.

[@Wideolink]

Awesome content ! Subbed !

[@adrianrosales9689]

Thanks Scott your course is making me 1k a day and I’m 15yers old 🏦🏦

[@joshuaprimrosearchives4704]

Alan Rosales you have ig?

[@adrianrosales9689]

@adrian_rosalesoficial

[@Zima_Blue01]

Alan Rosales how long have you been doing dropshipping/ having your shopify store?

[@adrianrosales9689]

iFloran like 1 month

[@BB-jz2tq]

@@adrianrosales9689 yoooo that's awesome dude I'm almost 16 but im still creating my budget so I haven't started 😂 so you're making 1k q day after 1 month?

[@rasmusdrejerziegler9044]

Hey I bought your course yesterday and can't wait to get started I requested to join the Facebook group yesterday how long does it take to get accepted?

[@Kwame00]

Hows it going?

[@AdamNRG316]

Funny you say about accountants needing to get with the times, banks need to do the same. A few weeks ago I was pretty much refused a bussines bank account because the bank (which is a highly reputatable high street bank in the UK) had no idea what the hell amazon fba was. I explained for a good 30 minutes and they still just didn't get the concept and thought everything sold on amazon, was by amazon. Ended up just walking out. Was sick of the patronising looks and questions which stemmed purely from their own ignorance.

[@vlogfamous8049]

great video mane!

[@jazz1750]

Thank you!!

[@timelapshd1353]

Scott: "aaa a aaaaaa" Accountant: -shakes head 😂 Great vd ✌️🙂

[@christianrivera6808]

lol !

[@HoliSupps]

Where can I find the UK equivalent of this accountant? Great work guys.

[@CousinBobbyNR]

So Even though I set up an LLC for an e-commerce clothing company I can do all of my eBay sales and other reselling through the same business. What about a media company?

[@ecomaccountants]

services are a bit complex from a sales tax standpoint if that's what you're referencing!

[@SpaceyCadet]

why you passing the mic like its a spliff

[@fullstackmarketing247]

Great video!

[@jafa9399]

Hey guys I have a question. When someone buys the product from you and you go aliexpress to buy it. Are you gonna use your credit card to buy it or the buyers credit card.

[@faisalsiyad8076]

Mensley your own credit card for the product cost and for ads

[@Johnged15]

Great video.

[@kaushikkam2596]

Hi Scott this might to personal for you to answer but are you paying more than 50 percent in taxes in California?

[@hebahqadeer3202]

Hey if your doing a seasonal one product dropshiping store and you want to close it will it affect your taxes or llc, do I need to take my store name off the llc ???

[@never9to5club87]

Exactly what I was looking for...thanks man!

[@Notjobincome]

Great video! File your taxes!!!!!!

[@savageclassics]

Yeaux Scott! Do you have an online community for your dropshipping work?

[@griffith4581]

Thanks for the video, am I able to deduct shipping costs if buyer paid? or only free shipping? The IRS considers shipping as income, but it's not profit I get so, that's why I'm asking.

[@janoleroux6310]

Hey Scott. Great video! One question, when should you file your first tax return? My LLC was formed on 12 March 2020.

[@Michael-te6tb]

Would love to know to. Did you ever find out?

[@venturoman9021]

@@Michael-te6tb you file from the data you registered your company. If you registered on 12 Mach 2020 Then you should file on or before 11 March 2021

[@infoaccountants8896]

If you formed your LLC during 2020 you should file your first tax return by April 15 2021. PLEASE NOTE that you may be required to pay quarterly estimated taxes at some point before this April 15th deadline

[@microc3phaly]

Chris is the GOAT

[@Gha6i]

You could use a mic splitter though

[@kevinboss3490]

do you help non us residents start ecom?

[@kevinprince8143]

Scott, are you still doing private one on one dropshipping setups??

[@Cheryl1965]

Watching this now. I have a question. I'm a psychotherapist here on Nevada and I have a PLLC. Basically my full name followed by PLLC. Would it be okay to use this for my drop ship business? And can I use it as an S Corp as you described? Or do I need to switch from a PLLC to an LLC? Thanks so much. I'm so grateful for this video!

[@ascencionflores8864]

Scott if I pay to watch it live am I go in to be able to watch a replay of the video?

[@salingstuff8085]

How do I claim the double tax collected if I'm not exempt but the platform collects

[@shimonwoldmann1776]

Where is the link to the "ecom tax academy" please?..

[@zsofiane8452]

Is it after $100k that you turn the tax button on to start charging taxes for futur sales in New York or do you still have to pay sales taxes for the existing 100k you already made ?

[@ninarechin2531]

Can you recommend how to find a ecommerce tax person? I'm in VA. Thinking of going i to dropshipping

[@hungryburger2705]

If we are US citizens but want to permanently live for example in Poland, can we do our taxes from Poland and not have to come to the US ?

[@infoaccountants8896]

Unfortunately if you are a citizen the IRS will require for you to file a tax return even if you are entirely abroad. Generally speaking if you are abroad and pay foreign income taxes, the US will grant you a tax credit for the foreign taxes paid. For example, if you generate $40 in tax from Poland and generate $60 in tax from the US, you would pay $40 to Poland and Pay $20 to the US ($60 US Tax - $40 Tax Credit). The only way around this is to renounce your citizenship - this is what one of the founders of Facebook did to avoid paying US income taxes.

[@johnnyutah6056]

The USA is the only country in the world with citizenship based taxation. So basically you were screwed at birth. You can renounce though.

[@hungryburger2705]

@@infoaccountants8896 What if I am a dual citizen ?

[@hungryburger2705]

@@johnnyutah6056 What if I am a dual citizen ?

[@johnnyutah6056]

Doesn't matter, id recommend watching Andrew Henderson on the Nomad Capitalist channel for detailed advice. He is the best

[@alexpena4514]

What’s up with sharing the little mic? Chris keeps looking at it like “what the fuck” 😂

[@xnoah4208]

Do you have to pay VAT in EU countries or the UAE for example?

[@amazinghook9401]

How do you trust that the product will sale ,, I sometime confused what to test , what your advice

[@khalidabdulla9909]

How about for the people that are just making a few hundred dollars a month, should they even worry about filing taxes yet?

[@khalidabdulla9909]

Alpine-M literally the answer I’ve been looking for thanks. Also, if you open many stores after each other, should each one just have a dba under the same llc? and when should you go from an llc to s-Corp?

[@kagus9]

Thank you

[@danielwall1277]

IS your first year of dropshipping tax free? and how do you measure your the start -finish of your first year? Is it from the date you filed your LLC? Thanks

[@ecomaccountants]

​@Idea Headed I like this response - it's pretty much all on par. We recommend LLCs for aspiring entrepreneurs because they'll "always have the itch" to conduct business. An LLC will provide legal protection as long as its used correctly AND will create the opportunity to elect for a better entity structure down the road as the business grows. Additionally, LLCs under their default treatment generally speaking, do not create additional income tax filing obligations. We mention Employment Taxes really quickly @14:45 - as you continue to grow you MUST consider tax planning to reduce Employment Taxes as they can become very burdensome. With all of this being said - We view Idea Headed's response as a good alternative approach. Just focus on making $ and then you can work on cleaning everything else up later.

[@vickywatson2779]

This was really helpful even though we are in Australia, there were answers to questions that are still relevant to us. Love your content Scott

[@ak5235]

Scott i need a bit of help. I would love it if you can give me some advice i would really appreciate it. I'm opening up a small gift shop online. I do dropshipping from one large online store in Massachusetts ( i live in dallas texas) . When a client goes on my website and buys product A, i will then go buy from that online store at a discounted price and then THEY will ship the product. But they DONT charge me sales tax ( i get a 15% discount im not sure if thats considered wholesale?) so do i need to charge taxes on the products i sell if all of them are bought from the online store in Massachusetts? I haven't sold anything yet. Trying to get everything in order. Can i start selling without a sales tax permit? Do i need to collect taxes ...?They have the inventory and i dont sell anywhere other than the US. Can i start selling without accounting for sales taxes ( i dont think ill be making much from this store maybe a couple of 1000 but im starting very slow). Please let me know :)

[@jakethoen176]

Hey Chris Im in Canada - do you work internationally? Or do you recommend anyone in canada?

[@TylerWohler]

Jake Thoen add me on IG brother I’m in Toronto @tylerwohler

[@Notjobincome]

Hey im in Canada too, if youre located in Toronto I would recommend baranovcpa their rates are a little high but they are really knowledgable

[@ankitcharolia]

what about the sales tax for Wyoming based LLC owned by a non-US resident (for DROPSHIPPING from CHINA only) ? Can you please address that ? Do I still need to pay sales tax ?

[@ecomaccountants]

Non-US Residents have very low risk in our opinion. For new entrepreneurs we recommend that you focus on the states that you have a physical presence - in your case you do not have a physical presence in the US. My recommendation is that as you continue to scale, you hire a professional to fully assess what your risk is from an accounting & tax standpoint.

[@techgeek1601]

You have to pay 37 percent as tax

[@amex4453]

aren't chargebacks reduced from the next payout? What's the big deal?

[@ecomaccountants]

Yes you are exactly correct - however many people try to shortcut bookkeeping by using gross sales instead of "Payouts" to your bank account. However please note that using "Payouts" to do your bookkeeping can cause issues as well because when the IRS is notified of your sales they look at GROSS SALES (without regard to chargebacks or merchant fees)

[@felixfelsmann651]

So what if I live in Europe and I'm dropshipping into the US. How does the sales tax work? As far as I know I don't have to collect sales tax as a non US citizen

[@quentin2578]

Have you found an answer?

[@adriandiaz2426]

Bro about to have hella clients

[@123Coffs]

Do you need a re-seller permit for every state you sell in? or just the state your business address is in? Plus the state of the drop-shippers warehouse? For example, if I was in california, but my drop shipper has a warehouse in ohio, and I sell to every state in america, would I need a reseller permit in california and ohio and the other states too?? Thanks

[@quentin2578]

Did you find an answer already?

[@lisapeterson5579]

Is it similar to taxes I used when I had a brick and mortar biz?

[@christianrivera6808]

Yes and No. Yes - the manner is which your taxes are calculated is the same. However, NO - the Income Tax planning strategies can be very different depending on the type of Brick & Mortar business that you had. Additionally eCommerce has a much larger sales tax nexus risk nationally than a Brick & Mortar business does.

[@josiahneill4880]

Hi Chris, I ran a Shopify store with 17k revenue back in June but then shut that down, and I recently formed an LLC after that store was said and done. For tax purposes will that store’s numbers be taxed as my sole proprietorship, or do I/should I/am I able to consider that inside my LLC tax return? Mega thanks!

[@infoaccountants8896]

The technical answer is that you should probably report the income separately (LLC vs Sole Proprietorship). HOWEVER, we'd recommend reaching out to Shopify/Paypal/Stripe or any other payment processor that you're using to see if they'll allow you to replace your social security number with your business entity's EIN prior to the end of 2019. This would in theory enable you to structure your business in a more tax friendly way

[@junemai8036]

So lets say my country still uses the old tax rule.. if i get 100k in sales in a state in the US do i still pay taxes there or follow the tax rules of my own country?

[@SunamiDevil]

You don’t pay US taxes unless you’re a US citizen. As long as your company is registered under your respective nations jurisdiction, that’s who you pay taxes to.