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Affiliation, US Company and Taxes as Non US Resident

by tidus457
4 replies
Hello everyone,

I am in the process of launching a new internet company that will get most of it's income throught affiliate marketing.
I am not a US resident, and for conveniency purpose, I planned to create a US LLC company in Delaware or Wyoming that will register to affiliate programs such as Amazon.

After quite much research, there is still one question I can't find a clear and definite answer to:

If you are not doing business in the state of incorporation, you don't have to pay state tax.
However, would I have to pay the federal taxes if I use amazon affiliate programm? Or is it not considered as "doing business" as I am not selling anything and not US based?

If anyone is in the same situation as I am, I would love to hear back from you!
Thanks!
#affiliation #company #taxes
  • Profile picture of the author tidus457
    bumping it once, as I think there is more people online around this hour.
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    • Profile picture of the author fcf360
      If you are not doing business in the state of incorporation, you don't have to pay state tax.

      State taxes are owed even if you don't do business in a state. Thus, make sure to go with a state that has no taxes. For Delaware, I know it doesn't have any state taxes. Not sure about Wyoming.

      However, would I have to pay the federal taxes if I use amazon affiliate programm? Or is it not considered as "doing business" as I am not selling anything and not US based?

      You will have to pay federal business taxes on the corporation, since the business entity is a U.S. entity. If you were to use your personal name (and no business entity), then your own home jurisdiction rules would apply.

      But, since this is an LLC (which is basically a flow through entity in it's default stage), it should actually transfer the tax burden to you, the individual. Thus, you technically owe taxes in your own country. That is from my experience. But, it is always advisable to consult a tax attorney if you are handling significant amounts.
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  • Profile picture of the author tidus457
    Thanks a lot for your very precise answer. And I can confirm you that Wyoming doesn't have taxes, like Delaware.

    I will take your advice and ask a tax attorney, so I will be sure to make no mistakes.

    Thanks again!
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  • Profile picture of the author awledd
    Why bother for all this and why not do business from your native country? I am not a US citizen but have several affiliate accounts and I am not obliged to pay tax. I only fill Tax exempt form W8 BENB and I am good to go.
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