Drop Shipping & FBA TaxAnswered

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

H2
hamad_20b6subscriber
November 19, 2024 1,710 views 1 answer
customs-brokerimporter-of-recorduaedelaware-llccbpduties

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 about $155,000. The broker told me they would take care of everything, but another founder warned me that the importer is still ultimately responsible.

I want to understand whether that warning is true in practice. If the broker misclassifies something or a document is wrong, can CBP still hold my LLC responsible as the importer of record?

Metered Q&A

Expert answer available

Checking your reading access. The answer will open in full when a free view or membership access is available.

Related Questions

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
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
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

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

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...

KT
kevin_tw_95ae·Nov 13, 2024
2,2301
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

If Amazon already remits the sales tax, do I still have to register in those states?

Since Amazon collects and remits sales tax on all my marketplace orders, do I, as a foreign-owned LLC selling only on Amazon FBA, still have to register for a sales tax permit in the states where my i...

M9
marisol_9d51·May 16, 2026
1,6201
DropshippingAnswered

Does FBA inventory create sales tax physical nexus even if Amazon collects the tax?

Amazon already collects and remits sales tax on my marketplace orders under marketplace facilitator laws. So does the fact that my FBA inventory physically sits in warehouses across several states sti...

T6
thiago_6b29·May 14, 2026
1,8401
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
DropshippingAnswered

If I have a US trade or business through FBA, how much of my sales income is actually ECI?

Suppose I accept that my Amazon FBA activity gives me a US trade or business. Does that automatically mean all my sales profit is effectively connected income, or does it depend on where the sales are...

L3
lucia_3d29·May 28, 2026
1,6901
DropshippingAnswered

Amazon spread my FBA inventory across several states without telling me — am I now exposed in all of them?

I started FBA expecting my stock to sit in one or two warehouses, but Amazon distributed it across many states for faster shipping, and I only found out from a report. Does that mean I now have tax ex...

B6
bastien_6f18·May 30, 2026
1,5601

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