Blog

How to Get an ITIN Number Quickly?

How to Get an ITIN Number Quickly?

– With our professional team, you do not have to contact to IRS directly. We will expedite your application to get your ITIN application faster.
– You do not have to send us your original documents such as a passport that may get lost. We will verify them.
– We will be in the process of any necessary revisions required from the IRS so you do not have to follow-up the entire process.

Can I get an ITIN without an Social Security Number?

Can I get an ITIN without an SSN?

You can only apply for ITIN if you do not have an SSN and without an SSN (Social Security Number) qualification.

How to scan Passport and Visa for ITIN Applications?

How to scan Passport and Visa for ITIN Applications?

– You need to apply for an ITIN with your current/valid
– If you have any old passport, please upload it, too.
– The resolution of your passport must be at the highest level.
– The passport scan must be in actual size.
– Your passport’s top and bottom page must be shown, as shown in the picture below.
– The ITIN Office does not accept the faded copy, your passport must be clear and easy to understand.
– As shown below, your passport must be on the top of the page and your picture below.
– Your passport scan must be
– Please, do not forget to save your passport scan as a .pdf file.
– You need to send us the .pdf copy of your passport scan

What are the ITIN Exceptions?

What are the ITIN Exceptions?

– Third-Party Withholding on Passive Income
– Other Incomes
– Third-Party Reporting of Mortgage Interest
– Third-Party Withholding—Disposition by a Foreign Person of U.S. Real Property Interest
– Reporting Obligations under TD (Treasury Decision) 9363

Can I run a business without a Tax ID?

Can I run a business without a Tax ID?

Each type of business has some tax responsibilities, but its ways depend on the kind of business. Even if there is no need to have it in some cases, it has some advantages to get a Tax ID.

Do I Have to Get an EIN?

All kinds of businesses without looking at their size and the number of employees must get an EIN.

Are you a Seller on Amazon? There is what you need to know about filing Tax Returns.

As a non-US resident, do you sell goods on Amazon? Do you do dropshipping? Then you might be wondering whether you are required to file a tax return or have other obligations before the IRS?

The 1099-K Form

With this form, you provide the IRS with monthly and annual gross sales information, including shipping fees and sales tax. Please note that you are not responsible for 1099-K Form if you are an individual seller. It is, instead of you, Amazon itself to provide the 1099-K to IRS and sellers.

1099-K Eligibility

According to the Amazon, the sellers who meet both of the conditions below are to be provided with the form;

– $20,000+ in unadjusted gross sales, and

– Number of transactions: 200+ transactions

If you do not meet the criteria above, yet, are a professional/individual seller with 50+ transactions a year, you still need to provide Amazon with your tax information.

How to Get 1099-K on Amazon

To see the form on Amazon, you need to follow the following path: Seller Central – Reports – Tax Document Library. Please note you will only be able to see the 1099-K if you meet the criteria mentioned above.

Form 1040

If you are conducting business in your state, you will be expected to file Schedule C, or Form 1040.

Sales Tax

Probably the most stressful part of filing taxes as an Amazon seller (especially if you are an FBA seller who uses Amazon’s fulfillment centers in various states) is sales tax.

Sales tax is a tax on items for sale which are deemed non-essential. The list of items may depend on the state to state. For example, some states apply a tax on clothing whereas some others do not.

If and as you are an Amazon seller, you need to collect sales taxes on behalf of your government (depending on the products you sell and the location of your business nexus).

What is a Sales Tax Nexus?

The definition varies from state to state. However, it is mostly defined as a place where there is a physical presence for your business. For example, if you have a home office in New Jersey and an inventory in Texas, you have a sales tax nexus in both. If your office is located in New York, but you have an employee in Delaware you will need to collect sales tax in both states.

When to File Sales Tax

To collect sales tax in the state, you need to apply for a sales tax permit. The state will assign you a filing frequency, which might be monthly, quarterly or annually. Please check the due dates.

If you have further questions, please do not hesitate to contact us!

How can I prove that you own a LLC in Delaware?

  • Delaware LLCs are the most well-known company type in Delaware and they are probably one of the most flexible types of business types that you can encounter anywhere in the world due to the legal protection and flexibility that provide to their owners. Whether you are a single entrepreneur or a family business, or a partnership with many members, LLCs fit into any situation to start a business.

In short, LLC is the abbreviation for Limited Liability Company; which, as the name suggests, burdens the owner(s) of a company with limited liability both financially and administratively. Unlike a corporation, the members of an LLC have the freedom to attain the roles, responsibilities, and liabilities of the single members of the company. Through the Operating Agreement which is written and signed by the members of the LLC, the owners of the company can determine their respective roles.

The main feature of an LLC is that the members of an LLC are not required to publicly disclose any personal information to form and maintain their companies. In addition, this privacy can save resources and time if the company decides to add, drop, or transfer members to or from the company in the future. In conclusion, when you start an LLC in Delaware, your information is kept confidential, and you do not have to state who started the business. Accordingly, you don’t have to give information about the other members. However, this may sometimes create problems, especially when you need to state who the owner of your company is.

Proof

To remedy this, the above-mentioned “Operating  Agreement” which includes the regulations about the authority, shares, and liabilities comes into play. As all members should sign this agreement,  you can use this agreement if you need to prove you are a member/owner of this company. Accordingly, there should also be a membership certificate for each member of the company. You can also provide this certificate when needed. This certificate usually states the shares, number of stock shares, and the liabilities of a member.

Do you have any further questions? Feel free to contact us!

FORM 5472

Is your US corporation is owned significantly by non-U.S. persons and also involves with foreign related parties? Then, you might need to file Form 5472.

Although it is not an actual tax return per se, Form 5472 is a declaration/an informational form to be submitted to the Internal Revenue Service (“IRS”) annually for U.S. companies with the following conditions.

The “significant” foreign ownership threshold in question for this form is at least twenty-five percent at any time during the tax year. This filing responsibility starts when a U.S. company is 25% foreign- or when a foreign corporation engaged in a trade or business within the United States. A corporation is 25% foreign-owned if it has at least one direct or indirect 25% foreign shareholder at any time during the tax year.

Generally, a foreign person is a 25% foreign shareholder if the person owns, directly or indirectly, at least 25% of either. For instance:

  • Reporting Corporation: A 25% foreign-owned U.S. corporation (including a foreign-owned U.S. DE), or A foreign corporation engaged in a trade or business within the United States.
  • 25% foreign-owned: A corporation is 25% foreign-owned if it has at least one direct or indirect 25% foreign shareholder at any time during the tax year.
  • 25% foreign shareholder: Generally, a foreign person (defined later) is a 25% foreign shareholder if the person owns, directly or indirectly, at least 25% of either:
  • Direct 25% foreign shareholder: A foreign person is a direct 25% foreign shareholder if it owns directly at least 25% of the stock of the reporting corporation by vote or value.
  • Ultimate indirect 25% foreign shareholder: An ultimate indirect 25% foreign shareholder is a 25% foreign shareholder whose ownership of stock of the reporting corporation is not attributed (under the principles of section 958(a)(1) and (2)) to any other 25% foreign shareholder.

Please note that depending on certain circumstances, this form has to be filed either separately or as part of the actual tax return. For instance, if the company is a U.S. Disregarded Entity and owned by foreigners, the form must be filed separately.

You might be wondering what would happen if you miss/fail to file this form. It is safe to say that the most essential point is the penalties prescribed for the failure to file. It is essential to ensure to have adequate records and information to timely prepare Form 5472 and keep proof of the timely filing of the returns to avoid assessment of the penalty. Otherwise, the company would be at risk to face stiff penalties. The penalty for not filing or failure to file in a timely manner can be from $10,000 to $25,000.  This penalty is often automatically assessed by the Internal Revenue Service if a tax return containing Form 5472 is filed late.

In short, if your US company has a foreign owner or foreign shareholders then the company probably has to file form 5472 with the IRS.

If you have any questions on Form 5472 and other tax-related issues, do not hesitate to contact us!

Do you want to discontinue your business? How to dissolve a company in Delaware?

Sometimes businesses do not unfold as expected and consequently fail to make enough profits. In such an event, the dissolution of the company might be a better course of action at that time. We will give some details about the dissolution of a company in Delaware in this article.

To do’s

  • Make sure that all franchise taxes have been paid. You will then need to issue a Certificate of Dissolution/Cancellation with the signature of you or someone else who has a signatory power.
  • When you first set up your company, a Certificate of Formation was legally granted to you. This time, in an event of dissolution of the company, a Certificate of Dissolution for Corporations or a Certificate of Cancellation for LLC will be drafted.
  • A cover memo (information about the related issue and the company) will be attached at the top of the document. Once your documents are ready, you must deliver it to the Division of Corporations of the State of Delaware. You also have to pay a fee to dissolve your company during the delivery of the file. You can make payments either during delivery or by using internet banking systems.
  • The process usually takes 3-5 business days to complete.
  • If you have a bank account of the company, do not forget to close it.
  • Be sure to consult your accountant and tax professionals about the dissolution of your company as well.