Drop Shipping & FBA TaxAnswered

A California warehouse will store my bestsellers. Is that enough to make my LLC's income effectively connected?

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ahsan_pk_fda4subscriber
November 9, 2024 2,510 views 1 answer
3plcaliforniainventoryecidropshippingdelaware-llc

I am based in Pakistan and use a Delaware LLC for an ecommerce brand that started as pure dropshipping. A 3PL in California now wants to store our top products for faster delivery. Annual revenue is around $210,000 and most customers are in the U.S.

I understand this may create sales tax nexus, but I am specifically worried about the federal side. Does moving inventory into California push the business into effectively connected income territory?

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