Tax interview for non US citizen with US LLC

#1

Hoping someone may know the answer here…
I’m a non US citizen with a US LLC. Currently i’m selling under my own name because in the tax interview it says for single member LLCs, put your own personal name.
However, of course i’d much rather be registered under my LLC name and address.
And if i have a US registered LLC, surely that is a business and US entity that is subject to US taxes?
When i enter “business” rather than “individual” on the form instead and say i’m a US person for tax reasons, it asks what kind of LLC - C-Corp, S-Corp or Partnership, then i can enter my EIN number (My LLC is just a simple single member LLC, no mention of any C-Corp or S-Corp)
Anyone also have an issue with this? Don’t want to get anything wrong!
Really appreciate any feedback

#2

Disclaimer first: I’m not a US tax accountant or US financial advisor. All I am sharing below is based solely on my own personal experience, and professional advice provided to me. I strongly recommending you always seek independent legal and/or financial advice.

I hope the following helps you better understand the issue so that you can gain a bit more clarity and decide how to move forward.

I too am non US resident and I know exactly what you’re talking about in this scenario.

This is one of the reasons I actually shut down my US single member LLC and established a company in my own country.

Amazon’s tax interview is setup correctly, and does ask the correct questions from a tax perspective.

The issue is however, their system drags across the single member details and uses that same information as the legal entity, thus why your personal name shows up as the legal entity inside of Seller Central.

I escalated this issue on numerous occasions with Amazon and explained the issue even at their legal level, however, despite also having sought clarification through a US based tax attorney, Amazon still said it is setup correctly in their system.

There is no way around it as a single member LLC entity when you’re an international non resident single member.

The biggest issue I could foresee with this is that your vendor issued invoices will always be in the name of the legal entity, your LLC, and so this will never match with Amazon’s backend system.

If Amazon ever asks for invoices for verification, you’ll very likely hit major issues, an unlikely be able to prove anything.

Operating under wholesale business model using that legal structure is risky, especially with the level of frivolous IP and authenticity claims that occur on the platform now.

You’ll also never be able to get ungated if requested to provide invoices because again, the entity details wont’ match. I know this for sure because I experienced and lost money from it.

Also, be aware of the additional reporting requirements that the IRS now has in place for non resident LLCs.

Very few people are aware of these new requirements until it is too late.

There are all very important considerations you should understand when deciding to continue operating as a US entity, and another reason why I would suggest you seek professional advice from someone who specialises in US tax law for NON US residents.

I hope this helps.

All the best.

1 Like
#4

Hey there,
Thanks very much for your very detailed reply, really appreciate it.
Yes those issues you mentioned i already came across (invoices with my LLC name) but i got around it by asking them to put my own name and address on it, which they were happy to do but that just sounds amateur to most suppliers i’m sure.
I’ll be getting in touch with a professional as well as looking into a limited company in my own country.
I assume you’re operating under your company name in your home country, my i ask if your US suppliers have an issue with this?

Thanks very much again

#5

Hi,

I’m glad it helped.

Unfortunately it’s another one of the many challenges us internationals experience when starting out on the marketplace in the USA.

Yes I established a new company in my home country and then applied for an EIN, which you will need to sell on the marketplace, and yes, it is very easy to get via a phone call to the IRS.

Then it’s up to you whether you get a reseller certificate.

You don’t need one, however you will find a LOT of brand owners who won’t open an account unless you provide them with one, even when you clearly explain that you’re an entity domiciled outside of the USA so legally don’t need one as I was advised by a tax attorney.

It’s more to remove that as an objection, but it does come with compliance requirements.

Once again, decide which way is right for you once you speak with a professional.

Hope this helps.

#6

Hi,

I’ll be investigating your way of doing things this weekend.

This information is a massive help, and once again, it’s hugely appreciated!

Wish you all the best with your business

P.S Anyone following this i’ll update it if i have anything new to report about this issue

#7

Hi AnthonyD.

Very useful advice, thanks for sharing.

Are you able to share the details of the accountant you use please? I’ve been searching high and lo for one which specialises in tax issues for non-US companies selling in the US, but haven’t found one yet. Appreciate your help.

Kind Regards,
Andrew

#8

Hi buddy, i know this isn’t directed at me, but look up taxesforexpats.com.

I’ve used them before to file a US tax return from outside the US, was a good service.

#9

Hey Watson, thanks for the link. Really helpful

#10

It does seem to me that there is no “one-stop-shop” UK accountant who will deal with all the UK and US tax issues. So you need to pay two accountants!

#11

That sounds about right, but I don’t know about that because when i filed my US return i didn’t need to do one for the UK as i don’t live there, so i don’t pay taxes there.

#12

Did you find any solution ?

#13

Hi there, yes i did. I simply entered my business name and details with its EIN.
It worked for me, but i’ve read it didn’t work for others, so it’s up to you if you want to give it a try. If you give it a try and if it doesn’t work you’ll know right away as you’ll have a message. If there’s no message it should have been accepted. If it hasn’t been accepted i think you can re enter your previous details as it was before, good luck.

#14

Glad to hear that everything is going very well with your Amazon account, and thanks for your response.

I will try to do what you suggest.

I need to talk with you for more details on seller account setup as we are in the same situation, how I can contact you?

#15

Hi,

Is this reply about the amazon tax interview?
How were you able to enter your business name and EIN?
I have the same case as you previously describe some months ago (foreign-owned single-member LLC incorporated in the US).
Can you please share with us what did you reply in the interview?

What is your tax classification?
Individual / Business

For U.S. tax purposes, are you a U.S. person?
Yes / No

Thanks a lot!

#16

Tax classification - Individual
For U.S. tax purposes, are you a U.S. person? Yes

Filled in my business details and EIN and it was done.

This worked for me, it may not work for you. I’m certainly NOT a professional so i am absolutely not responsible if it doesn’t work for you.

#17

Hello there,

Thanks for sharing your info!
I completed the tax interview the same way as you explained, and got a " Your tax information has been validated successfully." reply from amazon right away.
However, I checked how my Legal business name appers on amazon seller central, and it shows my personal name instead of my business name. When I filled the tax interview questionary, for question “Name (as shown on your income tax return)” I put my personal name, as this is how should be shown for the tax return form…
Did you encounter the same issue?

Thanks again!!

#18

Hi guys. Thanks for the information. It has been of great help. But I need to complicate things a little bit more. I have already paid two CPA’s for this and even though the indicated I am right about the pass through status of my LLC partnership we don’t know how to go through Amazon tax interview.

I have a partner. And we created an LLC. We are both non usa residents and we do not have any Nexus in the USA. So I guess we are a pass through entity.

But while taking the tax interview, the only available options are to be classified as a"Bussines" “us person for tax purposes” and after that we shall present a w9 form.

I supposed I shall fill a w8 form.

Is that w9 form we have been asked by amazon ok. Or are we going to be taxed in the USA as a corporation? Thanks