Is it legitimate to open a virtual office in the US from Africa? If so, what are the tax implications?
Public Comments
- Check IRS.gov or call a tax professional for this information.
- There's no such thing. If you want to run a business, you have to license, and licenses are never "virtual". You have to fill out forms, demonstrate that you're eligible to be licensed, and receive back an identification number for your new business. As soon as you open your doors, you are responsible to pay the same taxes as all other businesses regardless of where you run your web site. The taxes are based on where the sales are made and where the products are shipped. If you skip this process, you're running an unlicensed business. This is fine until you make a sale, then you've broken the law. The relavent authority would be the federal Department of Commerce for the business and the Internal Revenue Service for the taxes. If you think you've been the victim of a fraud, contact the DOC.
- I assume what you mean by virtual office is a website or phone number in the US, where US customers can order your good/service and it will be delivered to the US shipped from Africa. I'm this is correct, you should not have any tax implications in the US other than import/custom duties. If you are doing more than that, you should see a tax profession - just make sure they are qualified. You'll need them to see if there is a treaty in place between the US and Africa and if so have you established a "PE." They should know what this means.
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