eBay

na-6226 · ‎06-22-2021

I am a Vietnamese and I have never come to the US but I have my business on ebay. I import the products from China and Vietnam to the US as gifts so there is no VAT tax. I have my friend who lives in US to register ebay account, he also helps me to ship the item inside US. eBay required his SSN or ITIN (he submitted his SSN). And at the end of every year, eBay will send him a 1099K form (I will send you personally if needed) Now he feels complicated about tax so does not want to continue anymore. That's why I need to open my own US company. I have 2 questions:
1. In this case, can I only register an ITIN (indiviual person) is enough? or I have to open a LLC company with EIN completely? Note that I am Vietnamese I have never visited USA.
2. 1099K only show revenue, does not show the profit. So how can I pay for the income tax 21%? While ebay can not show the cost from my supplier. There are 2 situations:
+ I register ITIN as an indivial seller
+ I register EIN as a company
Thank you.

lacemaker3 · ‎06-22-2021

@na-6226, I don't think your proposed business plan of trying to set up a business in the USA, when you are not resident in the USA, is going to work. I suspect that it is against the law, and even if it isn't, there just isn't any way for you to do this.

You can't get a TIN or SSN in the USA unless you are a US citizen or legal resident of the USA.
An LLC is about the simplest business structure available, but they have to be registered in the US state where you live, and you have to be a legal resident of that state to do it. If you don't live in the USA, then you can't legally register an LLC.

"I import the products from China and Vietnam to the US as gifts so there is no VAT tax."

There is no VAT tax in the USA, but there may be other import restrictions or duties that are due on items that are imported for retail sale. Unless you are registered as a business, you owe sales tax at least on those imports. Nobody here likes a tax cheat, because that is stealing from everyone here. Nobody is going to help you and your friend cheat on your taxes that you owe.
A 1099-K is only for USA citizens, legal residents or businesses, who are required to pay taxes to the USA. As a citizen/resident of Viet Nam, you are required to pay taxes to Viet Nam, not the USA.

You don't have to be a US citizen or resident to sell items on eBay.com. There are proper, approved ways to register as a global seller (one who is not in the USA), which comply with USA, international, and your local laws. If you want to do this, then you need to do the thing right.

There's lots of information on this page about becoming a global seller. Click on the links, and follow up to find what you need to know. You will have to register a new account to sell with, because your friend can't transfer the USA-registered account to a different person, that is against eBay policy.

https://export.ebay.com/en/

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donsdetour · ‎06-22-2021

You say you sell items, and ship saying gifts as bypassing the customs illegally????

You friend is right to be worried.

As for the rest I can not give you advice maybe others will.

lacemaker3 · ‎06-22-2021

@na-6226, I don't think your proposed business plan of trying to set up a business in the USA, when you are not resident in the USA, is going to work. I suspect that it is against the law, and even if it isn't, there just isn't any way for you to do this.

You can't get a TIN or SSN in the USA unless you are a US citizen or legal resident of the USA.
An LLC is about the simplest business structure available, but they have to be registered in the US state where you live, and you have to be a legal resident of that state to do it. If you don't live in the USA, then you can't legally register an LLC.

"I import the products from China and Vietnam to the US as gifts so there is no VAT tax."

There is no VAT tax in the USA, but there may be other import restrictions or duties that are due on items that are imported for retail sale. Unless you are registered as a business, you owe sales tax at least on those imports. Nobody here likes a tax cheat, because that is stealing from everyone here. Nobody is going to help you and your friend cheat on your taxes that you owe.
A 1099-K is only for USA citizens, legal residents or businesses, who are required to pay taxes to the USA. As a citizen/resident of Viet Nam, you are required to pay taxes to Viet Nam, not the USA.

You don't have to be a US citizen or resident to sell items on eBay.com. There are proper, approved ways to register as a global seller (one who is not in the USA), which comply with USA, international, and your local laws. If you want to do this, then you need to do the thing right.

There's lots of information on this page about becoming a global seller. Click on the links, and follow up to find what you need to know. You will have to register a new account to sell with, because your friend can't transfer the USA-registered account to a different person, that is against eBay policy.

https://export.ebay.com/en/

na-6226 · ‎06-23-2021

I totally can register a Vietnamese account but I don't want. A foreigner can totally open a LLC in the US. You even don't mention to the ITIN.

lacemaker3 · ‎06-23-2021

https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin#

Here are the valid reasons for applying for an ITIN. You would need to be a non-US representative of a foreign corporation (not a USA corporation).

As I recall, I had to provide proof that I was resident in my state in order to register my LLC. In order to register a foreign LLC in California, for example, you would have to have a Certificate of Good Standing from the USA state where you are residing.

eBay requires that your account details and contact information have to be correct and up to date. If you are located in Viet Nam, then you have to provide a registered address in Viet Nam.

https://www.ebay.com/help/policies/identity-policies/false-missing-contact-information-policy?id=423...