Answers

Want to open a US Warehouse for Shipping Internet Products

Asked by: Doug  — 2 March, 2012

We have a Canadian company that ships to many locations in the USA.

Is there any advantages to incorporating in Delaware? Idaho? Montana?

Can we get a green card or any preferred status if we open an operation there and hire US people as well as our selves?

How do I make sure I charge the right state and local taxes on my internet shipments? There seems to be infinite possibilities or is it only the state tax from the point of shipping (if so which is the lowest)?

Answered by: admin  — 2 March, 2012

Dear Doug,

When you sell to US customers you are required to collect sales tax from the residents of those states where your company has what is called “nexus“. Typically you establish nexus in the state where you incorporate your business, but not only. If you ship your products from some other state you would create nexus in that state. You would also create nexus in the state where your business has physical presence.

In your case Delaware or Montana might be good choices, since both states have no sales tax at all, and because you have no nexus in any other state you wouldn’t need to worry about collecting sales tax at all (I presume you ship from Canada).

Situation would change if you would launch operations in the US. When you do you would need to register your company in the state where you would establish your operations (its called “foreign qualification“). As far as immigration advantages of such plan I would recommend you to consult an immigration attorney for professional consultation.

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