Hello, I am starting a dropshipping store to sell products on the US and Canada. I am a Costa Rica citizen and live in Costa Rica. My brother is a US citizen with Social security number and US bank accounts. He is helping me by opening a additional checking account so I can use Shopify Payments and get easier access to payment processors and smaller fees. My question is, by doing this with my brother, does it have a impact on his yearly taxes and if so, how should I handle that issue? should I hire an accountant on the US? Can someone please give me some advice on this. Thanks.
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Nick here from Shopify.
Really good questions! This is a great idea in theory and I completely see where you're coming from, but to answer your question it will absolutely affect your brothers taxes. In this instance, the income from the store would be reported to the IRS under your brothers tax ID, which wouldn't be correct as it would be your income. With this in mind, I would advise to not go this path. I would at least talk to an accountant in the USA to hear this from them and see if there are any ways you can do this without having to put something in your brothers name. Shopify has a help guide on it with more information here.
I know it's not exactly what you're looking for, but you could look into setting up your store with a payment gateway Shopify is partnered with in Costa Rica. You can still sell to people in the US and Canada no problem.
I hope this helps and don't hesitate to let me know if you have any other questions.
All the best, Nick