As someone who went through this exact process last year from Hong Kong, I can share some practical insights that might help clarify things. The key decision point is really about your risk tolerance and compliance complexity. Here's what I learned: **Structure Decision:** I ended up forming a US LLC (single-member, electing disregarded entity status) rather than using a Hong Kong company. This simplified my US tax filing significantly - I file Form 1040-NR as an individual rather than dealing with corporate forms like 1120-F. The liability protection was worth the extra complexity. **Nexus Reality:** Don't get too caught up in where you "manage" the business. The moment your products sit in Amazon warehouses, you have US nexus. I tried arguing that my business was managed from Hong Kong, but my tax advisor quickly shut that down - physical inventory presence trumps management location. **State Tax Strategy:** Focus on the big states first. California, Texas, Florida, and New York will likely be where most of your inventory ends up. Register proactively in these states rather than waiting for notices. Amazon's sales tax collection helps, but you still need to handle income tax registrations. **Practical Timeline:** Get your EIN first (you can apply online as a foreign person), then set up your business bank account, THEN start selling. Trying to sort out the tax structure after you're already generating income is much more complicated. The Hong Kong side is actually simpler than the US side - just make sure you're claiming foreign tax credits properly to avoid double taxation. Happy to answer specific questions about the process!

This thread has been incredibly helpful! I'm in a similar situation as a potential seller from overseas, and reading through everyone's real experiences has clarified so much. One thing I'm still wondering about is the timing of when to get professional help. It sounds like most people here eventually needed tax professionals, but there seems to be debate about whether to get help upfront during structure setup or wait until you have actual sales to justify the cost. For someone just starting out, what would be the minimum viable approach? Could I begin with the basic LLC setup and EIN that @Margot Quinn described, start selling to test the waters, and then engage professionals once I hit certain revenue thresholds? Or are there critical mistakes you can make early on that are expensive to fix later? Also, has anyone here dealt with the situation where your business doesn't work out? If I set up all this US tax infrastructure but then decide to stop selling after 6 months, what's the process for winding down the compliance obligations cleanly? The practical insights from @Chloe Martin and others who've actually been through this process are so much more valuable than generic tax advice. Thank you all for sharing your real experiences!

pro tip: check your transcripts weekly. sometimes they release it early without sending another notice

I went through this exact same thing last year! The CP05 is basically the IRS saying "hold up, we need to double-check some things on your return before we send your refund." In my case, they were verifying my Earned Income Tax Credit and a dependent I claimed. The good news is that if everything checks out (which it usually does), you'll get your full refund plus interest for the delay. The bad news is yeah, it really can take the full 60 days or sometimes even a bit longer depending on their workload. Hang in there - I know the waiting is brutal but you're not alone! 💪

Has anyone used CoinTracker or Koinly for this? I've heard mixed things but wondering if they're worth trying.

I went through this exact situation last year with about 400+ crypto transactions. Unfortunately, the IRS doesn't allow averaging for crypto held in personal wallets - you're correct that averaging methods are only permitted for certain custodial arrangements. However, there are a few things that helped me manage the paperwork burden: 1. You can use the "summary statement" approach mentioned by Emma - attach a detailed spreadsheet with all transactions and reference it on Form 8949 with "See attached statement." 2. Group similar transactions together when possible. For example, if you have multiple Bitcoin purchases/sales, you can list them consecutively to make the forms more organized. 3. Consider whether any of your transactions qualify as "like-kind exchanges" if they happened before 2018, though this probably doesn't apply to your 2024 activity. The key is maintaining detailed records with acquisition dates, sale dates, cost basis, and sale proceeds for each transaction. Even though it's a pain, proper documentation will save you major headaches if you ever get audited. The IRS has been increasingly focused on crypto compliance, so it's worth doing it right the first time. Good luck with those forms - I know the feeling of staring at hundreds of transactions!

Just to add some clarification on the $600 threshold mentioned earlier - that's actually for 1099s, not W2s. For W2s, employers are required to issue them for ANY amount if federal income tax, Social Security tax, or Medicare tax was withheld, regardless of how small the amount. Even if no taxes were withheld, they still need to issue a W2 if you earned $600 or more. But since you mentioned you're pretty sure they withheld taxes from your $115-140 shift, they're definitely required to send you a W2. Given that it's already February and you haven't received it, I'd suggest calling the employer first. If that doesn't work, the IRS can help after February 14th. Keep records of your attempts to contact the employer - the IRS will ask about that when you call them.

I work in payroll and can confirm what others have said - if ANY taxes were withheld from your single day's pay, the employer is legally required to issue you a W2, no matter how small the amount. The $600 threshold only applies when NO taxes were withheld. Since you mentioned they likely withheld taxes from your $115-140 shift, they definitely owe you a W2. The January 31st deadline has passed, so they're already late. I'd recommend calling their payroll or HR department first - sometimes W2s get lost in the mail or sent to old addresses. If you can't reach them or they're unresponsive, definitely contact the IRS after February 14th. They take missing W2s seriously and will contact the employer on your behalf. Make sure to keep records of your attempts to contact the employer - the IRS will want to know what steps you've already taken. Also, don't forget that you'll need that W2 info for your tax return. If you end up having to file without it using Form 4852, you'll need to estimate your withholdings as accurately as possible based on any pay stub or records you have.

Just want to add that you're making the right choice keeping your EIN! I had the same situation - regular W-2 job plus freelance consulting with an EIN. The filing process really is straightforward once you understand it. One tip that saved me time: when you're filling out Schedule C, make sure you select the right business code for your consulting work. The IRS has specific codes for different types of consulting (management, computer, etc.) and using the correct one helps avoid any follow-up questions. Also, since you're married filing jointly, your spouse doesn't need to worry about the EIN at all - it's just your business identifier that appears on the Schedule C portion of your joint return. The income will flow through to your main 1040 and get combined with your other household income for tax calculation purposes.

This is exactly the situation I found myself in last year! I was so worried about complicating our joint return when I got my EIN for freelance work, but it turned out to be much simpler than I expected. One thing that really helped me was setting up a separate business checking account using my EIN right from the start. Even though it's not required for sole proprietors, it made tracking business expenses so much cleaner. When tax time came, I could easily pull all my business transactions without having to sort through personal spending. Also, don't forget about quarterly estimated taxes if your freelance income is substantial. Since you won't have taxes withheld from that income like your W-2 job, you might need to make quarterly payments to avoid penalties. The IRS has a safe harbor rule where if you pay at least 100% of last year's total tax liability through withholding and estimated payments, you won't face penalties even if you owe more. Your EIN will serve you well if you ever decide to expand the business or need to open merchant accounts for client payments!