93% Commissions/shares sent to overseas Hello
I?ll make it quick. Here is what?s going on:
I sell women?s accessories online and am located in Texas. My supplier lives in Turkey. He also sells his stuff- as retail on Etsy.com -besides wholesaling to me. 6 Months ago Paypal stopped doing business in Turkey. Etsy offers only Paypal outside US as a payment method. So,
I opened a Paypal account for him to use here in US. It is under my LLC?s name but he uses it. I collect 7% of the sales. I don?t do anything at all other than keeping 7% of the sales and sell them 93% a few times a month. He does the shipping, customer returns, customer complaints, etc,..The sales are around 100K a year. This 100K sales are paid to US based Paypal, then to my business acct then 93% of the money goes to Turkey via Western Union. Each time I send him the 93% he sends me an invoice. So at the end I will deduct 93% from my income and am planning to pay income tax out of 7%. My question is:
Is this ok? Will I be in trouble? He has no business registration or any establishment in the US. The invoices are just PDFs saying 93% partnership share. That?s all and that concerns me. I can show the money going out to Turkey Thru WestenUnion if needed
Since the money hits from paypal to my LLC?c business acoount, in case IRS comes after me, can I just simply dissolve the LLC and be safe?
Thank you in advance |