I am new to ecommerce and recently set up a Shopify store aimed at women's fashion. I have the option of setting up a company in order to accept payments in either the US or in Mexico. I wanted to see if anyone had advice.
A few considerations:
My target market is the Mexican customer, possibly in the future I would target US.
My supplier is located in the US, I'm doing dropship, thus products are priced in USD. (I am using an app to convert language and currency which is a pain in the...)
So I would need to accept payments in MXN and pay the supplier in USD, which is not ideal, not sure how foreign transaction fees would work.
Additionally I am thinking about taxes. Seems the US system is more complicated with each state having its own reporting requirements. MX asks for 16% VAT and monthly reporting (same as US, although US has lower tax rate, but I would need to also pay tax as employer and employee which makes it more expensive...).
I'm leaning toward MX set up. Any things I should consider that I didn't? Advice?