Do I need to register my business in the US to sell in the US?

I am building a web site to sell products shipped from a warehouse in NJ. My business is registered in Ontario, Canada.

I was just contacted by a consultant who told me that I need to register my business in the US and have a US physical address in order to sell this way. Of course, he was offering his services to provide such.

I have checked the New Jersey state tax site and they do not appear to make any reference to this type of registration.

Is this guy for real?

How are you paid? In US or Canadian dollars? Since you are making money from a US source, you DO have to report to the IRS that you are making money on a product whose source is USA borne. Even if the manufacturing was done in China, the distributor is from NJ, so you have to let the state of NJ know what you are doing. Also..., so NJ has a record of who is doing business in their state in order to "come after" a business who might be scamming consumers, (a common practice for all 50 states actually), so they'll know where to "get you".

Not only do you have to register to do so, the tax rate you pay for being an International company making money from a US source is 30%!

Thanks for the business my Canadian friend, and GOOD LUCK!

Thank you my fellow answer-ers! Report It