If you are doing dropshipping with success, there will be a moment, when you will have to make it legal. Tax issues, mostly. I decided to make an american company – LLC. The process is quite simple.
Choose the state you want to register the LLC.
There are several options, most people go with states with no sales tax such as Delaware or New Mexico. I found it easy to make an LLC in Wyoming. It took me 5 minutes and costed 160$. I paid it from my Revolut Visa card. I did it using this registered agent service:
Why did I go for Wyoming? It was cheap and easy to set up and yearly costs are significantly lower than in Delaware. I am still confused about sales tax, but as far as I read, as a non-US resident you don’t pay sales tax in USA. You just have to pay the income tax from the profit to your home country.
Obtain an EIN number
As a non US resident you have to have something similar to their social security number or in our case – EIN number. This is necessary, because you will have to apply for a bank account in America, PayPal e.t.c.
To get this number, you have to fill the form SS4 and fax it to the IRS.
Here is a good instruction how to fill the form: https://www.llcuniversity.com/irs/how-to-apply-for-ein-without-ssn/
After you receive the EIN number, the next step is to open a bank account. I will use Transferwise. Not done yet, so I will update after I have made a bank account.