Overview

Non US residents can be very successful selling to the United States market. Over the last several years, we have mentored numerous people living outside the USA who have been very, very profitable operating stores targeting the US market. However, non US residents sometimes run into a few road blocks in the early stages of trying to set up a business entity, merchant account services, and dealer accounts with US-based suppliers. This article lines out the challenges you may (or may not) run into as a non US resident and helps you work through them as quickly and inexpensively as possible.

Before taking action on any of the items covered in this article, please be aware that NONE of them are absolute “must-do” requirements for selling in the US. You will typically only want to take those actions that become necessary.

We have spent a great deal of time and effort researching this topic and putting this article together. That being said, we're admittedly not experts in this area, and we have not had to actually take any of these actions ourselves (since we are US residents). If you come across anything in this article that seems (based on your personal experience) to be incorrect, please let us know. Also, if you have any suggestions or solutions we have not covered here, we'd love to hear from you so we can add them to this article.

Always Comply with all Local Regulations

Before we discuss doing business in the United States, let's talk briefly about your home country and region. Make sure to follow all laws and regulations in your area. Many new business owners try to cut corners to save time and a little bit of money. Honestly, though, it’s usually not too time-consuming or expensive to do things right. Most governments and agencies now have websites where you can learn about the requirements for business owners and even submit all the necessary registration forms online. Simply do a Google search for the name of your country/province/territory, followed by a phrase like ‘business registration’ or ‘register a business’.

In many countries, you probably don’t need to register a business entity with your local government, but doing so will make your business look more professional and will likely make it easier to get accounts set up with suppliers. Plus, having a business entity can provide a layer of personal protection against legal liability of the business. Contact your local government to find out about requirements for business owners and to learn about the pros and cons of registering a business entity.

Potential Roadblocks to Selling in the US

As a store owner based outside the US, here are some of the challenges you may encounter that will require you to take one or more of the actions discussed below:

1. Getting a dealer account set up with your supplier
2. Making payments to your supplier
3. Receiving mail
4. Accepting credit card payments from customers
5. Providing a US-based phone number customers can call

Let's discuss each of these potential challenges in greater detail.

1. Getting a dealer account set up with your supplier

In our experience, most NON-US suppliers do NOT require you to have a seller's permit (sales tax ID) or a federal employer identification number (EIN), or require you to be a US business entity, in order to do business with you. So if your prospective supplier is NOT located in the United States, you shouldn't have any problems getting set up as an authorized retailer. In a lot of markets, your prospective suppliers won't even be based in the US. If you have prospective suppliers both in the United States and outside the US, you may want to explore the NON-US suppliers since setting up an account with them will probably be easier.

Some (but certainly not all) suppliers in the US may want you to be a US company in order to set you up with a supplier account. But don't just assume that your prospective US supplier will require it; many suppliers don't! Many suppliers are satisfied just to see that you are a legitimate business and won't care what country you live in. They just want to know that you are not an individual trying to buy products for yourself at discounted wholesale prices.

Do your best to “feel out” your prospective supplier before you reveal the fact that you (or your business) is based outside the United States. If and when you do reveal that fact, make sure to emphasize to the supplier that a) your website will be selling to customers in the US, and b) you will be paying for products as orders are fulfilled (as opposed to buying on credit and making payment later). If the supplier is fine with your business being based outside of the US, they should be fine with you not having a seller's permit (sales tax ID). But some US-based suppliers may require you to have a seller's permit, in which case you will need to set up a US company. Follow these step-by-step instructions for setting up a US business entity.

One final thought: If a US-based supplier is only willing to work with you if you set up a US business and get a seller's permit, you may want to consider the idea of just buying products from that supplier at retail prices (instead of wholesale prices). We've sold in several niches where the profit margins were large enough that we bought at retail and marked up the prices for our customers and still made a decent profit. Plus, the supplier may be willing to give you some sort of “volume discount” based on the number of purchases you're making, effectively giving you prices somewhere between retail and wholesale.

2. Making payments to your supplier

Obviously, most US suppliers will require you to pay them in US dollars. But this doesn't mean that you have to set up a US bank account and get a US debit card. Based on our research, it is very difficult (if not impossible) for non US residents to set up a US business bank account, especially without coming to the US and setting up the account in person. But there are several easy, straightforward options for paying your supplier that do NOT require you to set up a US bank account. Check out this article about how NON US residents can pay their US-based suppliers.

3. Receiving mail

Aside from junk mail (which you don't want anyway), the only mail you may receive on a continuing basis are invoices from your supplier. Most suppliers send invoices and other communications via e-mail. But there are a few suppliers here and there that still send paper invoices through the mail. For those suppliers who do mail out invoices, many have no problem sending a “pouch” (containing several invoices) to your international address every few weeks (though they may charge you the postage).

If your supplier simply refuses to send invoices via e-mail or to your international address, you may need to get a US-based mailing address. For info on how to do that, read this article about how NON US residents can get a US mailing address.

4. Accepting credit card payments from customers

Most standard merchant accounts require that the customer and merchant be located in the same country and deal in the same currency. Obviously, if you are located outside the United States but selling to US-based customers, that presents a challenge. We've spent a great deal of time researching this issue and have found what we believe is the best, most affordable solution for store owners outside the USA. Read this article about how NON US residents can get set up to accept credit card payments from customers.

5. Providing a US-based phone number customers can call

Giving customers a US-based phone number they can call (even if it always goes straight to voice mail) boosts customer confidence and can increase your conversion rate substantially. Getting a US-based phone number is fast and easy, and it is very affordable (only about $5 USD per month). Check out these step-by-step instructions for getting a US phone number to learn how.

Disclaimer. We are not affiliated with any bank, government, accounting, or professional institution. This report was written to provide information regarding the subject matter. It is believed to be accurate but not infallible. It is given with the understanding that the author is not engaged in rendering legal, accounting, or other professional services. If legal assistance is required, the services of a competent professional should be sought. We assume no liability or responsibility for errors or omissions. The author shall not be liable to the purchaser for liability, loss or damage caused or alleged to have been cause directly or indirectly by this report.