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Tax Related to Billing Issues for Out of Country Sales

Setting up a US merchant account for someone out of country



4:36 pm on Nov 28, 2004 (gmt 0)

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Heloo all,
let me to describe the problem we have.
I have a friend in Armenia who whants to sell online, but not have a merchant account and cant open it as they are international and i live in US . I whant to get a business license in US , and open merchant on my name and evry month to send money to their US account and they can send INVOICE to me that they have got money from us and my friends company will let me some % for the service.
The problem is the TAX. What you can advice me , how to make that I will pay the TAX not from the sells volume. I mean In US i dont know where is the tax heavens. I have heard that if i will get the bisness license in Nevada
then i will pay only some fixed amount evry year no mean what is my volume
For example if the shop will sell online goods for 25k i will pay 100USD and if it will sell 125 again 100$ , this is for just example.
Please advice me thomething. What to do not to pay taxes for sales, as i am giving only service.
10:02 am on Nov 29, 2004 (gmt 0)

Full Member from US 

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joined:July 17, 2004
votes: 2

This will be best answerd by an accountant, but my guess is that you only pay taxes on your final income. So let's say the site generated $25K in annual revenue and you kept $5K as your commission for doing this, so you are only liable payong taxes on the $5K.
10:16 am on Dec 1, 2004 (gmt 0)

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joined:Oct 1, 2002
votes: 2

You pay tax on what you make in the US.

Your "friend" pays tax on whatever he makes from US sales in the country of origin. Should "your friends" tax rate be very low............well good for him!

US citizens and perminent residents have to pay US tax at the going rate. If the money is made outside of the USA then the tax is charged outside of the USA.