What to consider when going global
The Sydney Morning Herald, My Small Business, September 5th, 2012
Q. I operate a local online business selling a combination of locally sourced and imported apparel. I would like to expand into overseas markets with the aid of an outsourced warehousing and fulfilment service – Shipwire has been high on candidate list.
Given a new “physical presence” in the US, would we need to register as a business, and more importantly, would we need to pay tax to the IRS (Internal Revenue Service)? Does the use of a physical warehouse and fulfilment service necessitate this? Some of the products will be shipped directly from US wholesalers to our rented US warehouse.
We currently export to foreign markets – but I feel having an actual presence in one may complicate things.
A. Congratulations on having successfully developed your online business to a stage where you are now looking at overseas expansion.
I should preface my response by stating that I am not an accountant or lawyer and I recommend you obtain professional advice in this area. My comments should be construed as general advice only.
Read the full article here.