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Does receiving money into a US bank account make it a taxable business?


I run a costa rican buisiness renting houses for vacations. Basically all the clients are from the US, and I would like to be able to offer them the option of paying by PayPal.

Paypal will let me set up an account for my costa rican business, but will only allow me to withdraw the funds to a US bank account.

Assuming I can set up a US bank account, or get a friend to receive the money into their account in the US, will the US taxman then want to tax this money as if it was a US business?

Or can I simply transfer the money to my Costa Rican account without having to declare it to the US taxman?

If the US bank account is your only US activity, then you should not have any US income tax liability or filing requirements. Note that there are non-tax reporting requirements for funds transfers across borders.

If you have other US activities (such as sales visits, sales representatives, etc.) then you quickly cross into the grey area where you can easily become subject to US income tax. Source(s): 30 years of international tax practice.
you will definetly pay taxes as the money comes into the US. And yes the IRS would expect taxes from it. DO NOT GIVE THE MONEY TO SOMEONE ELSE unless they set up an account in the name of the business. That would be considered tax evasion, money laundering, or even fraud. The IRS is cracking down this year on doing audits, so should you get audited you would be in a lot of problems.
i'm an accountant with overseas clients
i would say no.

most United States tax laws decree that you are taxed on the money for where your business is located.


if you have no physical presence in a location, you are not doing business there.

Example: internet, phone calls, mail order.

you are not really there. you are only selling to people there.

your actual location is in Costa-Rica, as long as the houses you are selling from are there. or not in the US.. you have no physical property there to be taxed on.
yes?
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