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Global Business Growth Club

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28 contributions to Global Business Growth Club
Foreign owner of US SMLLC starting Amazon FBA — ECI? Would a partnership be better?
Hey all, thanks James and team for accepting me. I started a Wyoming SMLLC to sell private-label products on Amazon. The Amazon tax interview got me second-guessing everything. After bingeing YouTube, I’ve heard it all: “non-resident sellers pay no U.S. tax” vs “you’re taxed like any U.S. business,” plus “SMLLC is best” vs “go partnership for Amazon. I am Looking for informed, practical guidance Facts (bullet-proofing my situation): - Owner/Residency: I’m an individual non-US person residing in a non-treaty country. - Entity: US single-member LLC (Wyoming). Disregarded by default. - Business model: Amazon FBA (US marketplace) selling physical goods to US customers. Inventory will be stored in Amazon’s US fulfillment centers (multi-state). - Operations: Product design/supplier relationships, listing management, ad spend decisions, etc. are done outside the US. No US employees/contractors. No US office. Questions I’d love expert input on: - ECI determination: With inventory in US FBA warehouses and sales to US customers, is ECI basically a given for a foreign individual running FBA, even if all managerial functions happen offshore? - Best company structure : - 1) Stay SMLLC (disregarded) - 2) Partnership (add spouse or foreign company) - 3) C-corp election
0 likes • Oct 21
@Vishal Nawlani of course, just that Amazon verification does not see it that way, unless you can prove, and really prove you have US operations, which 95% of non-residents do not.
0 likes • Oct 30
@Kinan Trad Totally possible if you used your foreign residential address consistently. Most headaches pop up when a U.S. business address is declared and Amazon later asks for proof.
Puerto Rico LLC as US Estate Tax blocker
I've been looking into cheapest way to block US estate tax for non-residents and came across Puerto Rico LLC which is only slightly more expensive than US LLCs My findings: - It has PR corporate taxation by default but can elect pass-through (partnership-like) taxation even with single member (DE treatment status is only for PR-owned LLCs) - so if it's not engaged in trade or business in PR and doesn't have PR resident members it shouldn't be taxed in PR - Puerto Rico pass-through entity tax return instructions indicated that only entities engaged in trade or business in PR have to file that return and as far as I know there is no equivalent of form 5472/1120 - Under federal tax law PR LLC is foreign - IRC § 7701(a)(5) and corporation by default - Treas. Reg. § 301.7701-3(b)(2)(i)). - Changing tax status in PR doesn't change federal tax status causing hybrid entity mismatch - Stock in non-US corporation is not US situs asset under Treas. Reg. § 20.2105-1(f) I haven't been able to confirm not having to file PR tax return as it looks like this exemption only exists in instructions - https://hacienda.pr.gov/sites/default/files/documentos/inst_pass-through_entity_2022.pdf Anything I'm missing?
0 likes • Aug 28
This is never that simple... and this likely applies to the tax advantage of an LLC in Puerto Rico. I have seen several seminars on this subject, in the end, look up what is required for physical presense and residency and days in Puerto Rico. In the end, there is rarely every a cheap tax strategy that works long term, in my opinion (or at least one that will stand up to an audit).
US-based nominee director for merchant accounts
Hey guys, I'm an Australian citizen who has recently setup a single-member Wyoming LLC. I've got the EIN, bank account, registered agent and company docs. As I want to run a subscription offer on my ecommerce business, Stripe isn't the best option and I'm looking for a high-risk merchant account. Unfortunately, most US payment processors also require a US-based director that can act as the signer to help me get US-based payment processing (merchant accounts). I'm looking for a reputable service provider that can offer me this director, along with a Nominee Director agreement (NDA), Declaration of Trust and any other legal docs that can help. Thanks!
0 likes • Aug 28
No one will provide that because, as a signer, they are likely giving a personal guarantee on your US merchant account. In general, this is not required by Stripe (although other merchant providers may have different requirements). I am sure there are always exceptions, where others can provide their comments.
What are you struggling with right now?
I have clients in every niche who are experts. I am exploring the idea of collaborating with them to create exclusive content for this group. Let me know here what would be most valuable for you right now. Also look at other responses and give a like if you are interested in that too - as we'll be starting with the most popular topics
2 likes • Aug 28
@Adnane Ben Yes, unfortuantely you need to lease an office and provide proof with a lease and maybe even a real businedss utility bill it it does not look legit. Keep in mind, Shopify payments (wants to work with US companies with a US presence). Are there hacks, or work arounds that are less, maybe. Stripe is less strick, you might want to go that route instead. James has a lot youtube videos on better ideas.
Mercury Closed My Account & Is holding money
So on the 31st of december i tried logging in mercury, and it kept on declining i wasn't able to log in. They are holding money for about 22 days now. - i've emailed with 0 luck, they don't respond - tried everything with contacting admins There is alot of money in the account. Feels quite insane that a bank can do that What is another option here? Seems like I might just take this as a loss
1 like • Jan 28
I emailed our contact at Mercury and here is their policy on closed accounts with money left (make sure your address service is working and they don't just forward the mail to you in another country, you may never see it): Hi Scott, I wanted to let you know that the funds are sent via check to the address on file. Typically, this process can take anywhere from 14 to 30 days once the account is officially closed. Please let me know if you have any further questions—I’d be happy to assist. Best, Sumner Watkins
0 likes • Jan 31
@Kenan Salimov They will not send this email. This is an email I received from me being a partner. I asked them the process, this is the process.
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Scott Letourneau
3
31points to level up
@scott-letourneau-7761
Since 1997, I have worked with entrepreneurs globally to do business in the U.S.

Active 8d ago
Joined Oct 20, 2023
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