Amazon FBA & Dropshipping with 0% Tax!

Companies formed in Wyoming are among the most attractive options for entrepreneurs worldwide, primarily due to the unique advantages they offer.

One of the most significant benefits is 0% corporate tax, which allows businesses to retain all their profits without the need to pay taxes at the corporate level.

Furthermore, Wyoming is known for its strict protection of shareholder anonymity, ensuring a secure business environment.

However, to maintain zero taxation, specific conditions must be met, such as the company owner not being a resident of the United States, not employing staff, and not conducting business activities within the country – meaning you sell your services or products while located outside the US.

This is known as ETOB – meaning engage in trade or business. This condition is met when a) you have a dependent agent who works exclusively for you, and b) this agent does something substantial to promote your business in America.

If your company does not have income classified as ETOB, then it has no tax liability – even if it sells products or services to American customers through Amazon FBA, Shopify, etc.

Read more: Forming a Company in America

Dropshipping via Amazon FBA

In the case of Amazon FBA (Fulfillment by Amazon), many entrepreneurs leverage the platform to manage their sales and product distribution.

However, when a business operates as a Foreign Owned LLC in Wyoming and meets the ETOB requirements, it is not obligated to pay any tax.

This means that if the company has no physical presence in the United States, does not employ staff there, and does not manage business operations from US territory, its income from Amazon FBA is not considered “Effectively Connected Income”.

Consequently, it enjoys the privilege of zero taxation, retaining all revenue from its sales without tax imposition.

Shopify or direct dropshipping sales

Just as with Amazon FBA, the same principles apply to dropshipping, regardless of the platform used, whether it's Shopify or direct sales through your own website.

When the business operates as a Foreign Owned LLC in Wyoming and meets the necessary ETOB requirements, there is no obligation to pay tax in the United States. This means that whether products come from suppliers in Asia, Europe, or elsewhere, and regardless of where they are shipped, your company can benefit from zero taxation, provided there is no physical presence or staff in America.

This flexibility makes Wyoming an ideal destination for businesses engaged in dropshipping, offering significant tax advantages.

How to start your own company

Forming your own company in Wyoming is just 1 click away! You can start the formation process by simply filling out the online form below:

Wyoming Company Formation Form

The formation process takes 24-72 hours, depending on whether you choose Priority EIN for immediate issuance of the Employer Identification Number (necessary for opening a bank account) or not.

Contact us at 210.3000.490 or 6989.957.588 and start your tax-free journey today!