Drop Shipping In The USA From Canada
What can I say it has been a rough 2 weeks.
We have been running around like frantic chickens trying to find out the correct information when it was right in front of our eyes, I couldn’t believe everything we have had to go through to get to where we are now.
We are finally progressing forward and big things are starting to happen.
It has been a huge learning curve and I personally felt like giving up. There was a lot of trial, error and stress. Starting a drop shipping store in Canada is difficult to say the least, everything was confusing and information online was contradicting itself. We both called the Vancouver city help line and were getting different answers, it was giving us less and less hope.
We decided that the Canadian market would be too difficult at this time, so we decided to take a different direction and things have become a little less bumpy.
USA Drop Shipping
After going through everything we decided to do drop shipping in the USA, Why? Because it is ten times easier and so many people have done it there before, all we wanted to do was open a store but I felt I was having a repeat of the United Kingdom where it would be so difficult to start I would stop before I could start. The USA has offered something easy and simple to go forward with.
Our journey is made a lot easier as many people already do drop shipping in the USA. The course we are learning from has a forum which has a wealth of information. We can learn from their trial and errors and already we have learned so much just by looking through all the threads.
How We Did It?
We started our partnership in Canada as it is cheaper to start up. Andrew is a Canadian citizen so it was easy to set up.
Registering A General Partnership
Registering the general partnership was quite simple, Andrew did it all online.
Here are the steps
1) Visit the BC Registry Services website
2) Click on Registration of a Partnership
3) Click on ‘Name Approval Request number’
4) Click on ‘Name Request Online’
5) Read the information regarding the application, it can help clear up an questions you may have.
6) Click on ‘Step 2″
7) Check the name is available. Once you have checked the name click on ‘Back’
8) Click on ‘Step 3’
9) Make sure you read the instructions in links 1, 2, 3. Once you are sure start your application by clicking on ‘I’m ready to start’
10) Once you have finished you will receive a request number about 5 minutes after you have applied, keep this safe.
11) When you need to check the status of your application you can click on step for or click on this link
Type in your ‘Name Request Number’ to check the status of your application.
12) We received our general partnership soon after receiving the ‘Name Request Number’
Applying for the business licence
1) Visit the URL >> vancouver.ca/doing-business/get-a-business-licence
2) Scroll down to the bottom of the page and click on General Business Licence application form
Download the form here >> Application form
3) As I was not in Canada I filled in my name and signed the form.
4) I scanned the form and my passport and sent to Andrew.
5) Andrew filled in the rest of the application
6) He will apply for the business licence tomorrow.
I will update this part after he has received it.
Sales Tax & Nexus
One of the most confusing things I couldn’t get my head around is sales tax and nexus.
Here is my simplified version for people doing from Canada:
Nexus is basically the supplier being in the same state as the customer.
Sales Tax is only collected in the state we have registered for tax. We have to register for tax in the states we have a supplier in.
- Supplier is in Florida, We have to apply for sales tax
- Customer is in Florida, Supplier is in Florida = Collect sales tax
- Customer is in New Jersey, Supplier is in Florida = Do not collect sales tax
- Customer is in Florida, Supplier is in Texas = Collect sales tax
Disclaimer: This is what we understand of what we have been told so far, do not take this as legal advise.
Here is a Video Explaining Sales Tax Nexus
We have already written down our niche idea’s, our next step is to filter those niches to one. Once we have our one niche the next steps are finding suppliers, creating our Shopify store, and then call the suppliers. There is more work to do after this but lets keep this simple till the post next week, we don’t want to get too far ahead of ourselves. Another reason to get things up and running is we only have 14 days free with Shopify before they start charging us. What a better motivation to start getting sales!
We have set our first goal, we will have a live store with products and will have made our first sale by 18th August 2016. The clock is ticking, the hard work has started.
We both know this will be hard work but we also know the sacrifice is worth the reward it presents.
We sat down and discussed what we have done so far, what needs to be done and our future plans. I recommend watching this as it has some insightful information on starting a drop shipping store in the USA from a Canadian general partnership.
I hope you find this information useful.
Disclaimed: All information talked about is from personal experience and I am not a legal expert. Anything regarding taxes I would seek legal help.
Keep pushing towards your dreams and goal