BHP14 – Understanding US Accounting For E-commerce With Mike Johnston of Peisner & Company

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Sean Chow

Michael Flemming of Peisner Johnson & Company

Episode Overview

In Episode 14, I interview Michael Flemming of Peisner Johnson and Company where we go into the different Accounting rules and regulations that US and non-US E-commerce sellers need to be aware of when selling in the US.

We go into when to register for sales tax, what the main taxation obligations are in the US as well as choosing appropriate legal structures.

Gain an exclusive 10% Sales tax consultation discount with Michael Flemming of¬†Peisner¬†Johnson¬†and Company¬†who can advise you on choosing appropriate legal structures, as well¬†as when and what states you need to¬†register for sales tax, by using¬†my referral¬†link¬†and the referral code “PreferredClient”.

 

Understanding Ecommerce Accounting & Sales Tax in the US

‚ě§ Mike‚Äôs background;

‚ě§ Mike explains the difference between an Accountant and a Book keeper and when it‚Äôs more appropriate to use each service;

‚ě§ An overview of legal structures for e-commerce sellers and where a seller should be trading under a sole trader or a company legal structure in the US or if makes a difference;

‚ě§ I ask ‚ÄúDoes it make a difference, or is there any advantages to incorporating your company in certain US states or territories as I‚Äôve heard states like Delaware, Nevada and Wyoming have certain advantages?‚ÄĚ;

‚ě§ Learn what are the main tax obligations that US e-commerce sellers need to comply with;

‚ě§ I ask ‚ÄúIs it possible for international drop shippers, who for example drop ship from China and have no presence in the US, are they able to be liable for sales tax in the US?‚ÄĚ;

‚ě§ I ask ‚ÄúAt what point in a sellers journey do they need to register for corporation and sales tax in the US? Does this differ for a resident versus non-resident entities?‚ÄĚ;

‚ě§ Learn some of the best methods for new sellers to stay on top of their accounting and tax obligations and whether an excel spreadsheet adequate for accounting for your FBA or e-commerce business;

‚ě§ Mike provides his specific recommendations for accounting systems for users with little to no prior accounting experience;

‚ě§ What are the most common business tips or mistakes that you see E-commerce or Amazon sellers make when it comes to managing their e-commerce businesses?;

‚ě§ Overview of services provided by Peisner Johnson & Company;

‚짬† Learn the¬† best way for an international seller to expand into the US and whether you should consult a domestic accountant first; and

‚ě§ Mike provides a final comment on the importance of financial reporting and record keeping in e-commerce.

 

 

  Resources

‚ě§Xero:¬†Is a user-friendly cloud-based accounting software that Claire mentions. You can operate¬†Xero¬†from anywhere in the world and integrate it with programs like A2X Accounting Software to import all your Amazon transactions directly into Xero. Test Xero out with this¬†free 30-day trial.

‚짬†Taxjar: Is essential for US sellers as it simplifies the act of having to record, report and remit US state-based sales taxes. Gain your exclusive 10% discount by signing up to Taxjar using my affiliate link¬†and using the discount code ‚ÄúBUSINESSHACKER‚ÄĚ.

Gain a 10% discount off your sales tax consultation with¬†Peisner Johnson & Company, LLP when you use my referral¬†link¬†and the referral code “PreferredClient”.

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