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


Asked on 5/28/02, 8:44 pm

2 Answers from Attorneys

Francis R 'Francois' Favre, Esq. The International Lawyer

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.

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Answered on 6/05/02, 4:27 pm

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.

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney�s individualized advice for you. By reading the �Response� to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. Pursuant to California Rules of Professional Conduct rule 1-400(d)(4), this communication is intended as a solicitation for legal services.

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Answered on 5/28/02, 9:03 pm


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