The idea of starting a new chapter by entering the global market is more than exciting. We are talking about the whole process of learning new things by solving challenges and perfecting what you do.
However, to move from point A to point B, there are some steps and things that you need to do. Especially if you are coming from a country that has roadblocks on this path.
One of the possibilities is for you to merge your online sales with your own remote company in the US. To be more specific, a US LLC.
And when speaking of a US LLC for non-US residents, benefits like enjoying zero taxes, world-class payment processors, and yes, entering the global scene like a pro.
The possibilities are endless, one of them is becoming a top seller on Gumroad.
Gumroad: The basics
What is Gumroad?
Gumroad is an online platform for creators and entrepreneurs who want to sell digital products easily. It offers a wide variety of digital products, including ebooks, music, software, and more. With its capabilities for creating product pages, handling payments, and automating product delivery, Gumroad streamlines the selling process.
Gumroad’s user-friendly interface is one of its best qualities; even those with little technical knowledge may use it. The platform handles payment processing, client administration, and even tax computations, so you can focus on product development and promotion. Gumroad also provides connectivity with other tools and platforms, which expands your access to a worldwide audience.
Key Features and Benefits
Gumroad is a useful platform for selling digital goods since it provides essential features. Its simplicity is striking—anyone with basic technological knowledge can put up a shop. The platform is adaptable for many producers since it offers a wide range of digital products, including software and eBooks.
When it comes to payment processing – it’s safe, plus offers a variety of payment options and currencies, expanding your exposure to a worldwide audience. To guarantee a smooth transaction for both vendors and customers, it also offers solutions for handling customer relations and product delivery.
Who Can Sell on Gumroad?
Gumroad is an open platform for anybody selling digital goods since it is made for a wide variety of producers and businesspeople. For small businesses and freelancers who do not want to spend much in sophisticated e-commerce solutions, the platform is very beneficial.
Gumroad makes online selling accessible, even for those who are new to it, with its simple setup process. It is appropriate for anyone who wants to concentrate on creativity rather than the complexities of digital commerce because it doesn’t require much technological knowledge.
Although, if you want to sell on Gumroad, you’ll need a US Stripe account, because:
How To Start Selling On Gumroad
When you try to reach a global market by placing your service or product, and all you get to see are roadblocks along the way – it can be frustrating.
The good news? There is a shortcut to start selling on Gumroad from anywhere, and it’s called US LLC.
Basically, all you need to do is start your own remote US company as a non-US resident, open a US Stripe account, and get access to Gumroad. The next thing you’ll know is growing your business while you drink your fave beverage from your home, or any other place.
Steps To Start Your US LLC
Choose a State for Your LLC
The first step in forming a US LLC is deciding which state to register in. Each state has different regulations, taxes, and fees, so it’s important to choose wisely.
Popular States: Delaware and Wyoming are popular due to their business-friendly laws and lower fees.
We always recommend Wyoming, unless there is a very strong reason for any other state.
State Requirements: Research the specific requirements for each state, such as annual report fees and franchise taxes.
Business Location: Consider where your primary business operations will occur, as some states may require foreign qualifications if your business operates in multiple states.
File the Articles of Organization
Once you’ve chosen your state, the next step is to file the Articles of Organization.
Prepare Your Documents: Make sure you have all the required data, including the name, address, and registered agent information of your LLC.
Procedure for Filing: Send the Articles of Organization to the Secretary of State’s office in the state. Usually, you may accomplish this via mail or online.
Filing Fees: A filing fee, which differs by state, must be anticipated.
After filing, your LLC will be officially recognized by the state.
Draft the Operating Agreement
The Operating Agreement is a critical step, even if it’s not legally required in your state.
Define Roles: Clearly state each member’s obligations and roles.
Set Procedures: Establish protocols for allocating profits, resolving disputes, and making decisions.
Customize Terms: Adjust the terms to your own company requirements and situation.
A well-drafted Operating Agreement can prevent future conflicts and ensure smooth operations.
Obtain an EIN
For your LLC to operate, an Employer Identification Number (EIN) is required.
Apply Online: The IRS website offers a direct application process for an EIN. The program is simple to use and is free.
Details Needed: Give specifics like the name of your LLC, the date of creation, and the identity of the accountable person.
Instant Issuance: Your EIN will be issued to you as soon as your application has been processed.
Having an EIN is necessary for tax reporting, opening a bank account, and hiring employees.
Appoint a Registered Agent
Your LLC must have a registered agent in the state of formation.
Choose Wisely: Choose a reputable registered agent who can manage official notices and legal paperwork in a timely manner.
Service Providers: If you don’t have a physical presence in the state, registering as an agent is a simple alternative that many organizations provide.
Maintain Compliance: To stay out of trouble with the law, make sure your registered agent information is constantly current.
A professional registered agent service can help you stay compliant and protect your privacy.
Benefits of a US LLC for Non-Residents
Access to Global Markets
With a US company, you can tap into the broad US consumer base, one of the world’s largest and fastest-growing markets. This access goes beyond the US as, in the view of international clients, owning a US LLC frequently increases your reputation and dependability.
Additionally, a US LLC gives you access to top-notch financial institutions and payment processors, like Stripe, which are necessary for seamless cross-border transactions. For US-registered firms, these platforms frequently provide better terms and lower rates, allowing you to grow your reach without being constrained by high costs or a lack of service possibilities.
Gaining access to markets and improving financial services puts your company in a competitive position globally, promoting growth and helping you take advantage of foreign prospects effectively.
Simplifying Payment Processing
For non-resident business owners, a US LLC simplifies payment processing and provides access to dependable and effective financial services. You can effortlessly open accounts with popular payment processors like Stripe and Wise if your company is registered in the US. Serving a worldwide client base requires these systems to deliver smooth transactions that accept numerous currencies and payment methods.
You may easily manage your business money with a US LLC by opening online bank accounts with companies like Mercury and Relay. These accounts come with features designed specifically for business owners, such as cheap transaction costs and simple interaction with e-commerce platforms.
Zero Taxes and Legal Advantages
For non-residents, forming a US LLC presents significant tax and legal benefits, particularly when paired with platforms like Gumroad. Potentially paying no taxes on money generated abroad is one of the strongest benefits. If certain requirements are met and you don’t have any physical assets in the US, such as offices or workers, your US LLC could not be liable for federal income taxes.
In addition to its tax effectiveness, a US LLC provides legal benefits such as limited liability protection. You may feel secure and at ease knowing that your personal assets are shielded from any obligations about your business. Furthermore, US LLCs benefit from a more simplified regulatory framework than many other jurisdictions, with cheaper expenses and less formal requirements.
Selling Products from Europe
What to sell on Gumroad?
The key to success on Gumroad is identifying your niche and creating high-quality products that fulfill the specific needs or interests of your target audience. By leveraging your expertise and creativity, you can effectively utilize Gumroad to monetize your digital products from Europe and beyond.
Conclusion
Starting a business on Gumroad from Europe with the backing of a US LLC opens up a world of opportunities for digital entrepreneurs. With this combination, you may take advantage of a US LLC’s tax and legal benefits and the strength of a worldwide platform.
With Gumroad’s simplicity and smart product selection, you can efficiently reach a large audience without the challenges of traditional e-commerce setups. In addition, creating a US LLC gives you access to premium payment processors and increases your trustworthiness, guaranteeing seamless and effective transactions.
Although forming a US LLC may appear like a complicated procedure, there are some advantages, such as no taxes on foreign revenue and few administrative obstacles, which make it a desirable choice.
