Sell in the United States: LLC Formation & Marketplace Growth

Sales tax: there is no federal VAT — sales tax is set state by state, ranging from 0% (e.g. Oregon, Delaware) to over 10% with local surcharges

Economic nexus: since South Dakota v. Wayfair (2018), states can require remote sellers to collect sales tax once they cross thresholds (commonly $100,000 in sales or 200 transactions per year)

Marketplace facilitator laws: Amazon, Walmart and eBay collect and remit sales tax on your marketplace orders in nearly every state — but your DTC website sales remain your responsibility

Corporate income tax: federal flat 21%, plus state corporate taxes of roughly 0–12% depending on where you have nexus

• LLC: the standard choice for e-commerce sellers — Delaware and Wyoming are the most popular states; foreign founders need an EIN and a registered agent, no US residency or SSN required
• C-Corp: the default vehicle for raising venture capital (typically a Delaware C-Corp); double taxation but investor-friendly share structure
• S-Corp: pass-through taxation, but shareholders must be US residents — not available to foreign founders
• Sole Proprietorship: no legal entity, no liability shield — only practical for US-resident individuals testing an idea

• Delaware: the Court of Chancery and flexible corporate law make it the standard for holding and investment structures; franchise tax is predictable and filing is fast
• Wyoming: low formation and annual costs, no state income tax and strong privacy — a favorite for lean e-commerce LLCs
• State incentive programs: job-creation credits, sales tax exemptions on manufacturing equipment and data-center incentives vary widely by state
• Federal R&D tax credit: qualified research expenses can offset income tax — and up to $500,000 of payroll tax for eligible startups