5 {{ upvoteCount | shortNum }}
5 {{ upvoteCount | shortNum }}

US PayPal account - submitting a US tax return?

by van80
4 replies
  • ECOMMERCE
    • |
Hi all

I have a successful business selling ebooks online, using PayPal Canada as the payment gateway. However, due to the software we are using, we may need to switch to using a US PayPal account (I have a SSN so this is easy for me).

My question is - will my company then be subject to US tax? It has no employees, office or operations in the US. The US PayPal account would really be the only connection.

Thanks in advance!
Van
#account #paypal #return #submitting #tax
  • Profile picture of the author OnlineStoreHelp
    Originally Posted by van80 View Post

    Hi all

    I have a successful business selling ebooks online, using PayPal Canada as the payment gateway. However, due to the software we are using, we may need to switch to using a US PayPal account (I have a SSN so this is easy for me).

    My question is - will my company then be subject to US tax? It has no employees, office or operations in the US. The US PayPal account would really be the only connection.

    Thanks in advance!
    Van
    This is something to ask an accountant but given that you have a SSN, technically you are supposed to be paying income tax to the US on any income, whether you make it in Canada, europe, etc.
    Signature
    Learn how to set up a powerful, functional yet easy to use e-commerce website at cartprep.com.

    Not sure what ecommerce solution to use? Watch my video walk through of popular shopping carts.
    {{ DiscussionBoard.errors[8556481].message }}
  • Profile picture of the author sanarose
    Banned
    [DELETED]
    {{ DiscussionBoard.errors[8557236].message }}
    • Profile picture of the author joeynortel
      Yes, you do need to pay tax.

      For more exact reason why go our company site which train new and existing tax preparer via link 1040 Education, LLC

      Someone will answer you with the exact IRS statute for this.

      Good luck with your business.
      {{ DiscussionBoard.errors[8557732].message }}
      • Profile picture of the author MallofStyle
        I have a US PAypal and I have an online jewelry business with no permanent employees.
        Yes you have to pay taxes and when you open paypal for business, you are asked for your SSN.
        If your company is a sole proprietorship, you have to pay taxes as if everything that comes to paypal is your revenue and what deducts is your cost.
        Signature

        Thanks

        {{ DiscussionBoard.errors[8558841].message }}
  • Profile picture of the author whland
    Yeah. You'll need to pay tax.

    Chad
    Signature
    WebMasterBabble.com Webmaster Forum
    {{ DiscussionBoard.errors[8558984].message }}

Trending Topics