Legal Question in International Law in California
what law to follow
Dear Sir/Madam:
I have a foreign businees and am trying to sell informations through the internet to the United State, what law govern these kind of business, what kind of tax, should I pay to US. If I had a Website in the US that can download information to customers in the US, do I belong to the US business? Do I have to have seller permit and business license if I don't live here?
Thanks for your help and looking forward to here from you!
Anne
2 Answers from Attorneys
Re: what law to follow
Although the Internet is a global concern, at this time there is, so to speak, no or very little "Internet laws" mainly because of jurisdiction and enforcement but as far as the US is concerned,your problem may be cover in Title 26, starting Sec. 954 of the US Codes, aka "IRS Code" which govern "tax on Income from sources within or without the United States". As a general principle, a US citizen, or a resident, is taxed on all income from whatever sources derived at home or abroad whereas a non-resident alien will be taxed usually only on income from US sources. It is again a matter of jurisdiction and enforcement.
I hope this will help you; anything further will require extensive research.
Re: what law to follow
Anne,
You need to provide more information before an attorney can advise you. For example, depending on the country you live in or pass data through and the nature of the data, you may need to comply with the European Union Data Protection Act or similar laws.
Your U.S. tax responsibilities will depend on the type of business you operate, where your customers live, and other factors. And whether or not you need a seller's permit depends on the nature of the business.
You need to consult a law firm which has expertise in internet, intellectual property and tax law.
D. Alexander Floum is an experienced attorney and a law school professor.
The Schinner Law Group is a full-service law firm, providing assistance in business, corporate, tax, litigation, contracts, internet, intellectual property and related areas of law.
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