USTB + ECI: The Two Rules That Decide If Your U.S. Ecommerce Profits Are Taxable
Understand the two tests the IRS applies before your stock ever hits a U.S. warehouse. If you sell on Amazon, TikTok, Walmart, or Shopify, through a foreign entity or a U.S. LLC...
these are the rules that decide whether your profits stay offshore or land on an IRS desk.
Learn When The IRS Says Your U.S. E-Commerce Profits Are Taxable
…and what changes once the answer is “yes”.
In this free 15-minute U.S. Tax Mini-Masterclass, you’ll discover:
• The two tests the IRS uses: U.S. Trade or Business (USTB) and Effectively Connected Income (ECI)
• Why inventory at FBA/3PL alone isn’t enough, and what facts actually tip you into USTB
• How title-passage (resellers) and place of production (brands) decide sourcing after TCJA
• When a dependent agent in the U.S. turns clean facts into USTB risk
• How a treaty “no-PE” claim can make federal tax $0, and why 1040-NR/1120-F + 8833 still matter
Our Partners And Brands Recommending NCP
THE SECRETS FOR A SUCCESSFUL E-COMMERCE EXPANSION WITH A U.S. LLC
Find Out What You'll Learn in Our Mini 10-Minute
U.S. Tax Masterclass
SECRET — 01
What Actually Creates a U.S. Trade or Business (USTOB)
Most sellers think “I’m not in the U.S.” means “I’m not taxable.” Not quite. The IRS looks for what you do in the U.S.: using U.S. space, a U.S. dependent agent, or your own recurring work stateside. Using independent FBA/3PL alone doesn’t equal an office; learn where the real line is.
SECRET — 02
The Two-Gate Test That Catches Most Foreign Sellers
Gate 1: USTB (do you have U.S. activity/agent/place).
Gate 2: Source/ECI (resellers: title-passage; producers: place of production after TCJA; U.S. office attribution can pull sales in). Miss either gate and you could be filing; W-8 on file or not.
SECRET — 03
Why Your W-8BEN-E Does NOT Save You
W-8BEN/E is a payor form, not a tax shield. Once you’re USTB/ECI, platforms may need W-8ECI and you must file 1040-NR/1120-F. Treaty relief can make tax $0, but only if you disclose with Form 8833. We’ll show the tripwire most sellers cross without noticing.
SECRET — 04
The CPA Shortcut That Can Cost You Thousands
Common costly shortcuts: “inventory = USTB” (over-file), “no return at all” (open statute, lost deductions), skipping Form 5472 for a foreign-owned SMLLC (automatic $25k penalty). See the lean vs protective vs treaty filing choices that actually de-risk you.
BONUS SECRET — 05
How to Know If You Must File (Even If You Owe $0)
Which single fact makes “no return” a bad bet. When a treaty helps, and the one page people forget to attach. The signal that §1446 withholding is headed your way.
ABOUT THE FOUNDER
Meet Scott Letourneau*, U.S. Expansion & Tax Strategy Advisor
7,000+ U.S. entities launched since 1997.
Amazon & Shopify Partner • Main Street Certified Tax Advisor • Speaker on five continents.
For three decades I’ve watched non-resident founders lose fortunes because a well-meaning CPA missed just one USTOB/ECI or marketplace-verification detail.
So I built a playbook that closes every gap before the IRS, or Amazon, TikTok Shop, or California FTB—does it for you.
In this free masterclass you’ll see:
• The 2-Gate test that now overrides “My foreign company is safe.”
• The TikTok W-9 + PBR trap that renders a single-member LLC useless.
• A real case study that sliced federal tax by 50 % on $1 M profit before the first FBA pallet shipped.
Skip it and you may spend the next three years waiting for the audit letter that wipes out your U.S. margin.
Watch it and you’ll know exactly how to expand with confidence—whether you stay foreign, form a U.S. entity, or run a hybrid structure.
Ready? Click below and start the masterclass now.
Launching a U.S. LLC or Expanding from your foreign entity?
Skip the 2025 Tax & Marketplace Traps That Crush Foreign Sellers!
Watch the free masterclass to learn the exact structure, verification, and U.S. federal and sales tax (even for marketplace seller) moves that keep your
U.S. profits intact from day one.
HEAR FROM WHAT OTHERS HAVE SAID ABOUT THIS FREE TRAINING
Don't Just Take Our Word For It.
As a non-resident, it was important for me to find someone I could rely on and who wouldn't let me down with the details. That's exactly what I found with Scott and his excellent team.
Sasha, Non-Resident SEller
If you are looking to start a U.S.-based business, Scott Letourneau is THE leading authority to help you lay a rock-solid foundation for your success. I can’t recommend him highly enough…
Spike Humer, Turnaround Specialist
Great consultation call, showed me all the steps necessary to operate a legit foreign-owned LLC, providing all the resources, and all the tax implications.
Emanuel Dimitriu
Tax and Legal Disclaimer
This website is not affiliated with Google™ or Facebook™, nor is it endorsed or sponsored by Google or Facebook. GOOGLE™ and FACEBOOK™ are trademarks of their respective companies.
This website is not affiliated with Google™ or Facebook™, nor is it endorsed or sponsored by Google or Facebook. GOOGLE™ and FACEBOOK™ are trademarks of their respective companies.
The tax savings examples and case studies presented are based on specific client circumstances and are for illustrative purposes only. These examples do not constitute guarantees of specific financial outcomes or tax savings. Individual results may vary significantly based on your specific business structure, operations, location, level of compliance, and other individual factors.
*Scott Letourneau, Nevada Corporate Planners, Inc. and affiliates are not providing direct legal, tax, or financial advice. Always consult with a qualified professional regarding your individual business, tax, or legal situation.All strategies, case studies, and examples on this site are educational only and do not constitute legal, tax, or financial advice. Consult a professional advisor to determine the best approach for your specific situation.
