U.S. Sales Tax Compliance for Non-U.S. Businesses

The SALTcast

In this podcast episode we, Ryan Johnson, Danny Wright, and Paul Johnson discuss the compliance requirements for non-US businesses operating in the United States. The conversation touches on various aspects related to tax compliance, especially for foreign sellers. We delve into the concept of nexus, which triggers a business's obligation to collect and remit sales tax in a state. We discuss potential roadblocks and challenges foreign businesses may face when trying to become compliant in the US.

While foreign businesses don't necessarily need to set up an LLC or a corporation within a US state to establish tax compliance, having a US bank account could be necessary to facilitate transactions and payments to the states. We highlight scenarios where a foreign business might want to set up a US entity, such as when dealing with suppliers or vendors that require it for partnership purposes.
Our conversation emphasizes the importance of understanding the practical implications of compliance, including administrative burdens and costs. We share real-life examples of situations where foreign businesses had to deal with compliance issues, including the complexities of managing sales tax exemptions, working with vendors, and dealing with state audits. We offer insights and solutions to help foreign businesses navigate these challenges and find the best path to compliance.

If you are a business that is located outside of the United States but are running into sales tax compliance issues you can schedule a call with us here: https://www.peisnerjohnson.com/whats-next/