No more Amazon for Ca affiliates..

[justo_tx]

^Yer both wrong. The problem is that half of the shit amazon is "Selling" isn't theirs.

They have a complex biz model which keeps half of their stock in warehouses, and the other half you or I could have in our garage right now, to be sold ebay-like, directly to the customers shopping at amazon.com.

If everything amazon.com sold was warehoused, there would be no discussion here. They'd be ok paying a consistant tax rate.

But how in the fuck can anyone expect them to ask all of those tens of thousands of Independent sellers scattered across the nation to start collecting taxes, especially across state lines?!?

Anyone thinking it is even remotely possible for amazon to "play ball" on this tax is simply not versed in the facts.

If Amazon built a system to manage municipal sales tax look ups it would be integrated into their checkout for Amazon merchants just like it would be for Amazon proper. If it was about Amazon merchants the state Governors would say that they constitute a nexus for Amazon and force the sales tax issue from that angle, making the affiliate issue moot (Amazon merchants > Amazon affiliates).

Bezos has said on more than one occasion they would support (or at least not protest) a streamlined tax code (whether you believe him or think it's a dodge to avoid tax altogether is another matter).

Amazon's Bezos: Federal legislation required to address sales tax issues

 

[eliquid]

This will help. States without an income tax:

Alaska
New Hampshire
Tennessee
Florida
South Dakota
Washington
Nevada
Texas
Wyoming

So what? Your top level Corp can wholly own the out if state LLC and use it's address. States like WY don't report anything to Feds or other states.

Not all of us have that setup though, which is the point I am making. Some of us dont need to have corps that own other corps/llc's. It cool if thats what you want though. This really doesnt apply to me though as i'm moving my shit out of country.

 

[dsiomtw]

Why not spend the time, effort and expense of moving your entire "business" offshore to just become an advertiser instead of a lowly affiliate? Problem solved and you'll make 10X more money.

 

[lukep]

If Amazon built a system to manage municipal sales tax look ups it would be integrated into their checkout for Amazon merchants just like it would be for Amazon proper.

Why should they go to that expense and trouble if eBay and Craigslist for that matter don't have to? They're just a listing board for these indies, and any law, state or federal, should see it that way but all of these states are totally ignoring this point.

If it was about Amazon merchants the state Governors would say that they constitute a nexus for Amazon and force the sales tax issue from that angle, making the affiliate issue moot (Amazon merchants > Amazon affiliates).

It damn well SHOULD be about the amazon merchants, you know, the ones by law who normally collect tax but are hiding behind Amazon in this odd case. -But the states feel that angle is too difficult to investigate and just tell Amazon: "Sorry, we want a piece of everything you touch..."

Bezos has said on more than one occasion they would support (or at least not protest) a streamlined tax code (whether you believe him or think it's a dodge to avoid tax altogether is another matter).

I've read something that Bezos said about the merchants situation too... It's usually the shortest sound byte that gets publicized the most because ppl don't have long enough attention spans to listen to the bigger picture.

 

[charlesmartel]

This really doesnt apply to me though as i'm moving my shit out of country.

Any info on how you're structuring it?

 

[justo_tx]

Why should they go to that expense and trouble if eBay and Craigslist for that matter don't have to? They're just a listing board for these indies, and any law, state or federal, should see it that way but all of these states are totally ignoring this point.

Ebay and Craigslist don't sell anything directly, they are just facilitators, and by that logic Google would be on the hook for just the same if they directed a buyer where to make a purchase. Amazon is direct seller and a facilitator, if Amazon only offered listing services and payment processing they wouldn't have any tax issue to dodge. I don't see how you can lump Amazon in with Ebay and Craigslist when Amazon's core business is so different.

I've read something that Bezos said about the merchants situation too... It's usually the shortest sound byte that gets publicized the most because ppl don't have long enough attention spans to listen to the bigger picture.

Well then blame lazy journalists, I've heard the federal tax angle several times, I've never once heard the merchant angle. The Federal tax angle is good distraction because it forces individual states to argue with each other and the Feds, something Bezos knows would take a long time given politicians idiotic grandstanding.

Concerning the merchant angle, if you have a link I'd like to read it. But if the merchant issue was a true concern why have the states that have enacted these laws to go after Amazon not taken them to court after they dropped affiliates and said "nuh uh, those merchants you facilitate payments for still constitute a nexus". If facilitating payments for another legal entity constitutes a nexus in the context of sales tax then Amazon would have dumped the merchants when they dumped the affiliates.

 

[eliquid]

Any info on how you're structuring it?

Here is some advice:

dual citizenship, get it. Your dual citizenship doesn't have to be in the country your moving your assets too, but it helps in some cases.

find a country with very good banking laws and also very well structured for business not doing business within their country. Taxes are not a big concern for me, but secrecy and privacy are. Pick a country that still doesn't have a tax treaty signed with the US ( very slim pickings ).

keep all your money for your business in your business bank account offshore.

pay yourself a reasonable and modest salary here in the states from your business, pay the correct amount of taxes on it as well. remember to pay yourself a bonus with dividends from your company as well, which is only taxed at the lower 15%.

vacation a lot outside your home country and use your business money for what you do outside the home country as business expenses. Your offshore business doesnt have to report its business earnings/expenses to the US and most times doesnt have to report it to its own home country ( depending on where you incorp'd ).

That is all im willing to share. I left some parts out, but if your eager to learn you will be able to find it out.

 

[lukep]

Ebay and Craigslist don't sell anything directly, they are just facilitators, and by that logic Google would be on the hook for just the same if they directed a buyer where to make a purchase. Amazon is direct seller and a facilitator, if Amazon only offered listing services and payment processing they wouldn't have any tax issue to dodge. I don't see how you can lump Amazon in with Ebay and Craigslist when Amazon's core business is so different.

Selling on Amazon is pretty much exactly what it is on eBay... Except they aren't auctions and somehow politicians don't even know that these Trillions of sale items aren't sitting in Amazon's few, small warehouses.

Well then blame lazy journalists

Oh I do!
Lazy journalists first, greedy, lazy politicians second.

 

[DangerBrown]

Wyoming FTW.
Nevada is old news.
Wyoming is financially solvent, and has a small, rural population. They'll be last on the list of states passing a law like this. Plus as has been said before, they have no state income tax. They also have among the best personal liability protection.

I have 2 "Wyoming Close LLCs". If you have lots of money or plan on having lots of money, it's great for estate planning. It can also function like a near bulletproof prenuptial agreement (for you or your kids) without the awkwardness of having a prospective spouse sign a prenup. Having 5 kids and knowing the divorce rate is 50%....I like that feature.

Oh yeah, I'm in Colorado which Amazon dropped, and one of my WY LLCs has an Amazon account active for over a year with no problem. Also of note is that my WY LLC has a Colorado bank account. So that has proven in my case to not be a factor like most assume it will be.

 

[charlesmartel]

Here is some advice:

dual citizenship, get it. Your dual citizenship doesn't have to be in the country your moving your assets too, but it helps in some cases.

find a country with very good banking laws and also very well structured for business not doing business within their country. Taxes are not a big concern for me, but secrecy and privacy are. Pick a country that still doesn't have a tax treaty signed with the US ( very slim pickings ).

keep all your money for your business in your business bank account offshore.

pay yourself a reasonable and modest salary here in the states from your business, pay the correct amount of taxes on it as well. remember to pay yourself a bonus with dividends from your company as well, which is only taxed at the lower 15%.

vacation a lot outside your home country and use your business money for what you do outside the home country as business expenses. Your offshore business doesnt have to report its business earnings/expenses to the US and most times doesnt have to report it to its own home country ( depending on where you incorp'd ).

That is all im willing to share. I left some parts out, but if your eager to learn you will be able to find it out.

+1 rep added:xomunch: