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Alan Maddick
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If you sell into the US a lot (sounds like this is your only sales channel from your post) then the IRS (tax department in the US) will expect you or your company to lodge a US tax return even if your company is Australian. I have had this be forced onto my clients turning over as little as $20,000pa the IRS is pretty onto world trade and views the default position as all income of the whole world belongs to it — You will then declare the same income again in AUS with a credit for the tax paid in the US. (under the double taxation agreement) State based sales taxes and other fun stuff can also become involved.

Setting up a US or OS company is quite cheap (typically in the range of $1500-$5000 depending on the country in question) and in todays world of international trade I have set up many companies is various countries for tax planning purposes or simple logistics / HR reasons.

There are many benefits to having an OS company beyond tax evasion / tax planning too by the way – depends on your business operations and what you are trying to achieve. That said in your briefly described scenario I would not register a US company.

Feel free to email me if you have any Qs [email protected] :)