I have an Etsy shop selling handmade goods through my foreign-owned LLC — what taxes do I owe?
I'm a German citizen living in Berlin. I opened a Wyoming LLC and started selling handmade jewelry on Etsy to U.S. customers. I make everything at home in Germany and ship internationally. Revenue is about $28,000/year.
Etsy asked for my W-8BEN-E form and seems to collect sales tax. But a friend told me I still need to file something called Form 5472? And do I owe U.S. income tax on Etsy sales if I'm making the products in Germany and just shipping them?
I'm a small one-person operation. The U.S. tax system feels impossibly complicated for a foreign crafts seller.
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