Hey guys,


I'm really interested in doing some importing from china but I have A LOT to learn first. I wanna get on the right track so my first question is this - If I'm planning on importing most of my items from overseas what kind of business entity should I create and how does each effect taxes in the United States? Should I do a Sole Proprietorship? An LLC? Corporation? Which is the best suited for an online ecommerce type of business that imports from overseas like china for example.


Thanx so much for the replies in advance!


-Adrian

  Quoting from [nayru]:


Hey guys,



I'm really interested in doing some importing from china but I have A LOT to learn first. I wanna get on the right track so my first question is this - If I'm planning on importing most of my items from overseas what kind of business entity should I create and how does each effect taxes in the United States? Should I do a Sole Proprietorship? An LLC? Corporation? Which is the best suited for an online ecommerce type of business that imports from overseas like china for example.



Thanx so much for the replies in advance!



-Adrian

I am in the same boat.  Did you ever find out the information you were looking for?

Quoting from [nayru]:


Hey guys,



I'm really interested in doing some importing from china but I have A LOT to learn first. I wanna get on the right track so my first question is this - If I'm planning on importing most of my items from overseas what kind of business entity should I create and how does each effect taxes in the United States? Should I do a Sole Proprietorship? An LLC? Corporation? Which is the best suited for an online ecommerce type of business that imports from overseas like china for example.



Thanx so much for the replies in advance!



-Adrian

A broker at your end should know all these questions, and you should have forwarder to arrange shipment for you.

The sourcing part is the important process for you. there is many details you need to know to better protect yourself for your company.

Quoting from [nayru]:


Hey guys,



I'm really interested in doing some importing from china but I have A LOT to learn first. I wanna get on the right track so my first question is this - If I'm planning on importing most of my items from overseas what kind of business entity should I create and how does each effect taxes in the United States? Should I do a Sole Proprietorship? An LLC? Corporation? Which is the best suited for an online ecommerce type of business that imports from overseas like china for example.



Thanx so much for the replies in advance!



-Adrian

This really depends on the direction you plan on taking the business.  If you have no plans to ever take your business public then an LLC is all that you need.  LLC's are not taxed by default, as the profits pass thru to the members/managers of the LLC thus the portion of the profit you make based on the % of ownership in the LLC goes thru to your personal taxes.   Thus you would have to file a 1040 long form yearly as well as about 4 additional IRS tax forms.  State Tax forms vary from state to state and how they actually tax individualss off LLC's.  If you really want a good explanavtion of the difference between Entity types in the USA go to www.legalzoom.com

Ranger

Quoting from [nayru]:


Hey guys,



I'm really interested in doing some importing from china but I have A LOT to learn first. I wanna get on the right track so my first question is this - If I'm planning on importing most of my items from overseas what kind of business entity should I create and how does each effect taxes in the United States? Should I do a Sole Proprietorship? An LLC? Corporation? Which is the best suited for an online ecommerce type of business that imports from overseas like china for example.



Thanx so much for the replies in advance!



-Adrian

A good reference that can be usedto assist you is "Import/Export for Dummies" it is a newly released book that will provide infoprmation on how to evaluate import/export opportunites, selecting products and finding suppliers, setting up an office for international trade, developing a marketingstrategy, how to complete licensing and shipping documents and negotating of prices and arranging payments.....                                                                                      

Thanx for all the replies guys, lots of good stuff here.