Dropshipping USA products to USA customers from a foreign company account

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Tourist
3 0 1

Hello,

I want to ask if there are people out there (companies) that use dropshippers outside their company's home country for 3rd party selling?

My company is based in Bulgaria, but I want to resell US products from US dropshippers. All well but my local tax consultants and accountants say this is almost impossible do to and do the accounting for. They do not understand this dropshipping model and the laws do not specify that.

I bet there are many companies outside USA who do this legally without issues (e.g. Australian ones), any feedback is welcome.

P.S. Let me also note that I've successfully opened a trade dropshipping account with several USA dropshippers, so that's not the issue.

 

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Shopify Partner
26 0 2

Yes this is possible, we have many clients from all over the world who do this. You need to get a U.S. company (LLC or similar) with an EIN (Tax ID number). Once you have these two things, you will need a resellers permit/license. This is issued by the state you file your company in and is required by U.S. dropshippers to sell you the products tax free. There are a handful of U.S. states that you should file in and many that you should not.

Danny Ward | Data+Design | Award Winning eCommerce Business Development | Shopify Expert
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Tourist
3 0 1

Thank you for the reply. I was considering a site called https://www.myusacorporation.com/ to incorporate an LLC in USA, but I'm not familiar how to run the LLC itself after opening the company.

Here in Bulgaria I have a dedicated accountant who does all the accounting for me, but I'm not sure who I can trust in the USA, being a remote business owner. Any advise here woud be greatly appreciated, by all those of you who run your US LLCs from abroad. Do you have any assigned staff in USA that's running the business on your behalf? Where can I find reliable accountants from? Any such info is greatly appreciated !

Hope this thread gets more replies :)

 

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Shopify Partner
26 0 2

myusacorporation.com is a very good choice. We have used them many times before to set up companies for clients based in France, Saudi Arabia, UK, Canada, Autralia, Germany, etc. I recommend you contact Ray (ray@myusacorporation.com) and let him know were referred by Data+Design. He knows the best states to form your company in, you should specifically look into Wyoming and Utah due to low annual costs. Wyoming is a little slow initially to get your paperwork, so if you are in a big hurry then this may not be your best option. Be sure to get your resellers license/certificate with the package you order because the dropship suppliers in the USA will require this.

Danny Ward | Data+Design | Award Winning eCommerce Business Development | Shopify Expert
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Tourist
3 0 1

Hi Danny,

I'm kind of familiar with the procedures you mentioned, my hesitation comes from the pure management of the company afterwards.

Where can I get consultation advise regarding that? Hiring an accountant and doing everything legal and right... read somewhere that even small insignificant accounting errors can lead to great issues and the taxation penalties are big. What is your experience?

Once again thank you for the referral to Ray from @myusacorporation.

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New Member
1 0 0

Hi, how do I go about drop shipping with a company out of the U.S? A lot of my items are cos-play costumes that are hard to find in the U.S. Do I have to have a license?

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New Member
7 0 0

I have already registered our LLC company in US and now looking for EIN and when I called the number they are either not picking up or on an auto reply. Please help me out and do let me know how we can get our EIN? 

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Shopify Partner
26 0 2

If you already have your U.S. LLC and only need an EIN, then you can file online with the IRS and get an instant EIN for free. Click here to file for EIN

Danny Ward | Data+Design | Award Winning eCommerce Business Development | Shopify Expert
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New Member
1 0 1

edit

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New Member
1 0 0

I would like to recommend http://www.oceantailer.com for a good B2B eCommerce platform where both sides wholesalers and retailers can benefit for the sales, reduce overhead, increase profit and streamline their supply chain.

 

OceanTailer is focusing on the housewares and sports items currently, but already have more than 50,000 products on the platform from various USA based manufacturers/wholesalers.

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