What To Do When Amazon Shuts Down Their Affiliate Program In Your State

Good Blog post

It all comes down to Internet marketer rule #1

* have multiple streams of income

and be ready to adapt at any time to stay in business

You can't read anything until you fill in the pop up box. Go figure

There's always an alternative - try ebay partner network (they pay much better than amazon) ... Why worry about your $1,000 commission check from amazon when EPN can pay you $10,000 for the same amount of quality traffic you are sending them

Oh geez... that sounds like too much work.

I thought that when Amazon shut down in my state it meant that it was time to retire at the ripe old age of 25!

The ideas in the article are a bad idea, and here is why:

You do realize that setting up a business in another state doesn’t end the nexus issue, right?

In fact, you are opening yourself up to considerable liability on the tax front, and possible criminal tax evasion charges if you do not IN FACT operate from the new state.

If you don’t move yourself, and not just your entity on paper, you have problems. You would in fact be operating a foreign LLC or corporation from your home state, without authority to do business in your home state, and the big problem there is once you have gotten authority to do business in your home state, you are no longer in compliance with the new policy by Amazon.

Of course, the real problem is that this tax fails the nexus tests under the “International Shoe Doctrine” -no, I’m not making that up, it is a US Supreme Court case that spells out the connections necessary for a business to be “doing business” in a state, and for the state to be subject to that state’s authority to collect sales tax.

Amazon has been fighting these laws in court since New York first proposed a law, which fails the nexus test on just about every level.

Amazon with its affiliate program created a new pricing strategy for advertising, not a genuine commissioned sales force.

If you want to continue as an Amazon Affiliate, move to a state with no sales tax, not simply a state with no affiliate tax issues. Of course the loss of sales tax revenue due to online consumption is clearly coming to a head, and the issue will soon be addressed.

Several states have already begun work on an interstate compact on Internet sales tax, and the federal government will likely impose some new regulations soon because the loss of revenue is staggering.

Amazon’s reaction is mind boggling. The company has attempted to claim that even when it operates subsidiaries in a state like the laboratory it operates in California, it is not subject to tax, and this is ludicrous under the “International Shoe Doctrine.” There is a nexus in that instance.

The reality is that this issue is Amazon’s effort to convince a small number of people who are making a small fraction of the money that Amazon makes to fight a losing battle on its behalf.

The Internet will be taxed. There is too large of a drain on the basis of the sales tax pool for online sales not to be taxed, along with all other mail order operations.
It would cost Amazon a pittance, given present technology to comply with the law, and it would be short work for most cart providers to give their users the tools to comply with sales tax regime’s nationwide, but they don’t want to play that way because it has been a significant strategic advantage over big box stores and other retailers.

That advantage will be going away. The playing field will once again be leveled.
Deal with it, but don’t take bad legal advice. Setting up an LLC in a foreign jurisdiction WITHOUT ACTUAL PRESENCE there is setting yourself up for criminal tax evasion charges

this is a spammy post since it was nothing but a link.

regardless of how valuable the info on that site is, you've got to add value to a post as well. I'm turned off.