Drop Shipping & FBA TaxAnswered

I used to ship direct from Asia but now I am considering FBA. Is that basically a tax line in the sand?

KT
kevin_tw_95aesubscriber
November 13, 2024 2,230 views 1 answer
amazon-fbadirect-shippingtaiwaninventoryecidelaware-llc

I am based in Taiwan and run an ecommerce brand through a Delaware LLC. So far we have shipped everything directly from Asia, but Amazon FBA could improve conversion and delivery times. Annual revenue is about $145,000. I keep hearing that FBA is not just an operational decision and can change taxes materially.

Can you explain whether that is really true, or whether people are exaggerating the difference between direct shipping and FBA?

Related Questions

DropshippingAnsweredFeatured

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

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 a...

AP
ahsan_pk_fda4·Nov 9, 2024
2,5101
DropshippingAnswered

My supplier sends samples and paid inventory shipments differently. Should duties be tracked separately?

I am based in India and use a U.S. LLC for an ecommerce brand. We import product samples one way and later larger commercial shipments another way. My broker handles the customs side, but our accounti...

PI
priya_in_d4cc·Nov 17, 2024
1,8701
DropshippingAnswered

My broker files the customs paperwork. If something is wrong, is my LLC still responsible?

I am based in the UAE and sell products into the U.S. through a Delaware LLC. We recently started importing small batches for faster fulfillment, and a customs broker handles the entries. Revenue is a...

H2
hamad_20b6·Nov 19, 2024
1,7101
DropshippingAnswered

If I never store inventory in the U.S., is my dropshipping LLC usually safer from ECI?

I am in Nigeria and run a small dropshipping business through a New Mexico LLC. Products ship from China to U.S. customers and I do not keep inventory in the U.S. Revenue is only about $60,000 for now...

TN
temi_ng_4419·Nov 11, 2024
2,0701
DropshippingAnswered

Etsy collects sales tax for marketplace orders, but what about my Shopify site for the same products?

I am in the Philippines and sell the same handmade products through Etsy and Shopify using one Delaware LLC. Etsy clearly says it remits U.S. sales tax for qualifying marketplace orders, but Shopify i...

IP
isabel_ph_d3a8·Nov 15, 2024
1,9601
DropshippingAnsweredFeatured

My supplier ships from China to U.S. customers. How do I know whether my LLC is the importer of record?

I am in Vietnam and run a dropshipping store through a Wyoming LLC. Orders are about $9,000 to $12,000 a month and the supplier in Shenzhen handles almost all shipping logistics. Sometimes they say du...

TV
trang_vn_cb85·Nov 7, 2024
2,7901
EcommerceAnsweredFeatured

My 3PL wants to store inventory in New Jersey. Does that create a U.S. income tax problem, not just sales tax?

I am based in Colombia and sell home goods through a Delaware LLC. Right now I ship from abroad, but a U.S. 3PL offered to store inventory in New Jersey so delivery times would improve. Sales are abou...

LC
laura_co_2e5a·Nov 5, 2024
2,2601
InternationalAnswered

I live in China but spent three weeks in the U.S. meeting clients. Does that put the treaty story at risk?

I run a Delaware LLC from Shanghai, but this year I spent about three weeks in the U.S. meeting enterprise clients and attending a conference. No office, no employees, and the contracts were signed la...

LC
leo_cn_ae7f·Oct 25, 2024
2,3901
Filing ProcessAnsweredFeatured

My LLC is filing Form 5472, but does that mean I personally also file Form 1040-NR?

I live in South Korea and own a Delaware single-member LLC. My preparer is getting ready to file Form 5472 with the pro forma Form 1120 because I had owner funding and reimbursements during the year. ...

HB
hana_bfa9·Jan 12, 2025
3,2401
Physical BusinessAnswered

If my LLC manufactures products in the U.S., is it basically impossible to argue I am not in a U.S. trade or business?

I am a Canadian founder and my Delaware LLC is considering a small U.S. manufacturing setup with local staff and local production. Right now we only import finished goods, but the numbers suggest manu...

OC
owen_ca_8952·Feb 3, 2025
2,2601

Have a similar question?

ForeignLLCTax members get expert answers with IRS citations. One CPA consultation costs $200+. Full access is $9.99/month.

Become a Member — $9.99/mo

Disclaimer: All content on ForeignLLCTax.com is created by a tax professional and is provided for general educational and informational purposes only. It does not constitute tax, legal, or accounting advice, and should not be relied upon as such. Every tax situation is different — for advice specific to your circumstances, please consult a licensed CPA, Enrolled Agent, or tax attorney. By using this website, purchasing a subscription, or accessing any tools or services, you acknowledge that no client-professional relationship is established between you and ForeignLLCTax.com or its operators. This website is not affiliated with the IRS.

Watch the walkthroughs