Here at Verde Fulfillment USA, we get companies contacting to us all the time asking “how can I sell products in the US market?” Feel free to use this as a guide to help you along the way to doing business in the US, as this has helped many clients over the years.
Do you have to be US citizen to sell products in the US? No. Anyone can sell products in the US market, whether an individual or a foreign-owned company.
Do you need to have an office in the US to do business here? No. 50% of Verde’s clients are international based selling products into the US without having a physical presence here. Having a US based company and website adds trust with US consumers and businesses, so not having a physical presence won’t necessarily hurt your business, but having an office or your 3PL in the US will definitely help you break through that possible barrier.
How Do I Register A Foreign-Owned Company In The US? You can register your company in any US State as a foreign-owned company. The type of company you register as will directly affect the taxes that you will pay to the IRS (Internal Revenue Service), the tax collecting arm of the US government. You should consult with your accountant for the best option for your business. Whichever State you register your company in, you will need to have an address to send legal documents to. There are organizations that specialize in this in each State, of which the more friendly States to register a foreign-owned company in is Delaware, Wyoming and Nevada. Once you have your company registered, you can easily open a US bank account with the assigned TIN (Taxpayer Identification Number) that is assigned to your new company.
Do you need to have a US bank account? No. However, most US based businesses and individuals have more trust with your company when payments go into the US banking system, rather than an international one due to the potential for fraud transactions. This may change in the future as global payment systems become more commonplace.
What Is My Tax Liability By Registering a Foreign-Owned Company? Your tax liability will be based on the type of company you register as, and the State you registered in. The only tax liability you have with Idaho, if you choose to use Verde Fulfillment USA, is a 6% retail sales tax on any sales of your products direct to Idaho-based US consumers. This is the same for every State that has sales tax, although tax rates vary from State to State.
How Do I Import My Products To My US Fulfillment Center? The most important thing to remember is that you will need to ship your products to the US with all duties paid (DDP). Most fulfillment centers will not accept any inbound shipments with duties unpaid. Shipments coming to the US by ocean will need a US Customs broker to clear the shipment for you. Air shipments are Express status and have brokerage fees associated with them already.
The next big part of importing products is the Importer of Record (IOR) and Ultimate Consignee. As a foreign company (or US based), you can be the IOR and send product directly to your fulfillment center (Verde), which is listed as the “Ultimate Consignee.” All you need is the TIN # for US Customs records. Verde Fulfillment USA does this for most all clients, upon request. The Importer of Record is simply the person who accepts legal responsibility for ensuring your products meet local legal requirements. You can easily name yourself or your company and your foreign address as the IOR. Most freight forwarders can take care of these arrangements for you.
Whether you have a registered company in the US or not, you can sell your products here. You will be responsible for collecting sales tax if you have a registered US company. You can also import your own products into the US without issue. Ultimately, the choice is yours on the best way to do things, and know that Verde Fulfillment USA is here to help you along the way.
Feel free to drop us an email with your own feedback and comments. They are always welcome, as we are all in this together to help make you and your company be as profitable as possible.