Selling on Temu U.S.: fully managed, semi-managed or local seller, who pays tariffs, who files taxes, and how to set up the company (2026)

The difference comes down to three things: where the goods change hands, who sets the price, and who is the seller in the U.S. Fully managed means you hand goods to Temu in China and Temu prices and sells them. Semi-managed means you price and stock a U.S. warehouse or ship from China. Local selling means a U.S. business or resident sells from U.S. inventory. In the last two, you are the U.S. seller and the U.S. taxes and filings are yours.

Temu is run by subsidiaries of PDD Holdings. The U.S. site launched in September 2022, and its U.S. contracting entity is Whaleco Inc., a Delaware company. Seller sign-up is split by "where your business is registered or personal residence": sellers from mainland China and Hong Kong go to a separate Chinese seller portal (the fully and semi-managed back end), while U.S. businesses and residents use the U.S. Seller Center at seller.temu.com.

Description: Each row is one model, showing who can join, where goods are handed over, who sets the price, who ships and imports, who is the seller in the U.S., and the U.S. tax effect.

Model	Who can join	Where goods change hands	Who prices	Logistics and import	U.S. seller	U.S. tax effect
Fully managed	Factories and trading companies in mainland China and Hong Kong, usually by invitation	In China, at Temu's designated warehouse	Temu reviews and approves the supply price	Temu handles cross-border shipping, customs and delivery	Terms: non-local items are sourced by Temu from partners and sold	Supplier usually needs no U.S. company; read the contract on title and importer
Semi-managed (warehouse-shipped or direct-shipped)	Chinese sellers with operating capacity, usually with a U.S. warehouse	U.S. warehouse (or direct from China to the buyer)	Seller quotes, with platform price review	Seller handles inbound freight, import and the U.S. warehouse; last mile per platform rules	Seller (local warehouse items "sold by third-party merchandise partners")	Importer of record, duties, inventory states, ECI, Form 5472
U.S. local seller program	U.S. businesses (sole proprietorship, corporation, partnership) or U.S. resident individuals	Inside the U.S.	Per Seller Center rules, with platform price review and suggestions	Seller ships or uses a 3PL; Temu says it does not provide logistics directly	Seller	Like an Amazon merchant-fulfilled seller: income tax, state tax, 1099-K

• "Fully managed" and "semi-managed" are the industry's names: Temu's English material refers to fully managed, semi-managed or local sellers. The Chinese trade splits semi-managed into "ships from an overseas warehouse" and "ships direct cross-border." Names and thresholds change often.
• Reports say Temu tightened new fully managed onboarding for the U.S. in 2026 and shifted resources to semi-managed. Temu has not announced this publicly; as of November 2026, rely on written notices from your Temu account manager.
• U.S. sellers selling into Canada: Temu's material says U.S. local sellers have been able to sell to Canada since December 2025. That brings Canadian import and GST/HST questions; whether Temu collects, check Temu's notices.

A lot. Temu's engine used to be fully managed: Chinese factories supplied goods, and parcels shipped straight to U.S. buyers duty-free under the $800 de minimis rule. When de minimis ended for Chinese goods on May 2, 2025, Temu said that day that all U.S. sales would be handled by locally based sellers shipping from inside the U.S. U.S. warehouses and semi-managed selling became the focus. Direct shipping under fully managed partly resumed from July 2025, but every parcel now goes through customs and pays duty.

Description: Read from top to bottom; each row is an event and what it meant for sellers. Tariff policy changes quickly; check the latest CBP and USTR notices.

When	What happened	Effect on sellers
September 2022	Temu launches in the U.S., mainly fully managed	Chinese factories supply; parcels ship direct, mostly under de minimis
Early 2024	Semi-managed launches; the local seller program launches in the U.S. in March 2024	Sellers with U.S. warehouses can run their own listings
April 2025	Tariffs on Chinese goods jump; Temu shows buyers "import charges" on direct-shipped items	Direct-shipped prices rise sharply
2025-05-02	De minimis ends for mainland China and Hong Kong; Temu says U.S. orders are now fulfilled by local sellers, and non-local items show as out of stock	Local warehouses and semi-managed become the core
July 2025	Per the Financial Times (2025-08-26), fully managed direct shipping to the U.S. partly resumes	Direct parcels must clear customs and pay duty
2025-08-29	De minimis suspended for all countries	Parcels from anywhere pay duty
2025-09-05	The FTC announces a $2,000,000 civil penalty against Whaleco under the INFORM Consumers Act	Stricter seller verification and disclosure
December 2025	U.S. local sellers can sell to Canada (Temu material)	A new market and another layer of cross-border compliance
2026-02-20	The Supreme Court holds IEEPA doesn't authorize tariffs; IEEPA duties stop; de minimis stays suspended	Importers of record can claim refunds of IEEPA duties paid
From 2026-07-24	Section 301 forced-labor action adds 12.5% on Chinese-origin goods	Another layer of import cost
2027-07-01	OBBBA repeals the statutory basis for de minimis	De minimis is not coming back

• What this means for you: a Chinese factory on fully managed used to have almost nothing to do in the U.S. If you now want traffic and pricing control, you will probably stock a U.S. warehouse, which makes you a U.S. importer and seller with a U.S. entity, books and returns.
• Tariff layers: as of November 2026, Section 301 tariffs on Chinese-origin goods remain (25% or 7.5% for most lists), with the 12.5% forced-labor action stacked on since 2026-07-24. See Figure 3 of yclcpa.com/aigo for the full layers and yclcpa.com/fba for putting duties into inventory cost.
• Who can claim IEEPA refunds: only the importer of record or its broker. If a forwarder was importer under DDP terms, the refund belongs to the forwarder unless your contract says otherwise.

Local sellers need a U.S. presence: a registered business needs an EIN, with the business name and EIN matching the IRS confirmation letter (CP 575), plus a registered business address, the representative's ID and a U.S. bank account; U.S. resident individuals can also sell in their own name. Chinese sellers sign up through the Chinese seller portal with a Chinese business license and representative documents. Review usually takes about one business day.

• Entity types for local sellers: sign-up offers sole proprietorship, corporation, partnership or individual. According to Temu's material, a business enters the name and EIN exactly as on its CP 575 and a registered business address, and the representative verifies identity through Jumio by uploading a valid government ID.
• Keep the EIN letter: if you've lost the CP 575, call the IRS business line for a 147C. If the name or address on it doesn't match your formation documents, file Form 8822-B first. Name, address, EIN and bank account holder should match everywhere.
• INFORM Consumers Act: for a "high-volume third-party seller" (200 or more sales and $5,000 or more in a 12-month period), the platform must collect and verify your bank account, contact details and tax ID; sellers with $20,000 or more in annual sales have their name and address disclosed to buyers. On 2025-09-05 the FTC and DOJ announced a $2,000,000 penalty against Whaleco under this law, so verification will only get stricter.
• Chinese sellers: fully and semi-managed onboarding usually asks for a Chinese business license, the legal representative's ID and a receiving account; store deposits and category qualifications follow Temu's onboarding rules. Check the contract for which Temu entity you sign with and who pays you.
• Chinese-owned U.S. companies: a company registered in the U.S. can apply as a U.S. business if it has the EIN letter, a U.S. address and a U.S. bank account. If it's foreign-owned, its Form 5472 filings need to be current, and the platform, bank and IRS records need to match.
• Product compliance: children's product certificates (CPC), CPSC certificates for regulated consumer products (filed electronically at import since 2026-07-08), FCC authorization for wireless devices, FDA registration and listing for cosmetics, and California Prop 65 warnings are for testing labs and attorneys.

Temu does not publish a general commission schedule. Under fully managed, you quote a supply price, Temu approves it and sets the retail price, and the difference is Temu's revenue. Semi-managed and local sellers settle under the back-end rules, and the commission figures circulating in industry articles (for example 6% to 15% by category) contradict each other. Before you sign, confirm the fee, deposit, penalty and payout rules in writing.

• The fully managed "supply price": you quote; Temu reviews (the trade calls it price approval) and only approved items go live. Promotions often require price cuts. You are paid the supply price, not the retail price.
• Semi-managed and local sellers: you have more say over price, but the platform reviews prices, suggests lower ones and sets campaign requirements; listings priced above comparable items get less exposure. Work out the retail price, your payout and the platform's charges line by line from the settlement report.
• Shipping and returns: Temu promotes free shipping to buyers, so build last-mile cost into your price. Temu's buyer policy lets most items be returned within 90 days of purchase, with the first return on each order shipped free (Return and Refund Policy, 2026-09-17 version). Who bears that cost depends on your seller agreement.
• Deposits and penalties: the Chinese back end requires store deposits, and late shipment, stockouts, quality issues and fake tracking can trigger deductions or fines. In July 2024 suppliers protested fines and withheld payments at Temu's Guangzhou office (press reports). Penalty rules are in the rules center; disputes follow the agreement, and contract disputes are for an attorney.
• Payouts: U.S. local sellers are paid to a U.S. bank account; Chinese sellers settle on the cycle and currency in their agreement. Payout timing, holds and reserves are set by the agreement.

Under fully managed, the supplier hands goods to Temu in China, and Temu handles export, import and the sale to U.S. buyers. Temu's U.S. terms say non-local items are sourced by Temu from third-party partners, and that for certain items the buyer may act as importer of record, with a broker Temu appoints paying duties and taxes. A supplier with no U.S. inventory, no U.S. staff and no delivery in the U.S. generally needs no U.S. company and files no U.S. income tax return, but the contract wording can change that.

Description: Each row is an obligation, showing the fully managed supplier and the semi-managed or local seller. The fully managed column depends on your supply contract.

Obligation	Fully managed supplier	Semi-managed / local seller
Seller in the U.S.	Generally not (terms: Temu sources and sells)	Yes (terms: local warehouse items sold by third-party partners)
Importer of record and duties	Generally arranged by Temu; for some direct parcels the buyer is importer and a broker pays	You or your forwarder or broker; the forwarder under DDP
U.S. sales tax	Temu collects from buyers	Temu collects at checkout (marketplace facilitator laws); you handle off-platform sales
State income or franchise tax	Generally none	Possible in inventory states
Form 1099-K	Generally not relevant (foreign supplier)	U.S. sellers over $20,000 and 200 transactions
U.S. federal income tax	Generally no U.S.-source business income	U.S. company files 1120; a foreign-owned LLC may have ECI
Form 5472	Not relevant without a U.S. company	Every year for 25%+ foreign-owned corporations and foreign-owned single-member LLCs

• Three clauses to check: whether you "sell to Temu" or consign goods for Temu to sell; where title and risk pass; and who is the U.S. importer. If title passes to Temu in China, your income is generally an export sale made in China. If title passes only when the goods reach the U.S. buyer, or you are asked to ship in bulk to a U.S. warehouse as importer, analyze it as a U.S. seller.
• Fully managed goods can end up in the U.S. too: reports say Temu opened U.S. forward warehouses in 2025 and moved some fully managed stock there based on demand data. Who is importer and who owns the stock follows your notice and the entry documents.
• Chinese taxes: VAT, export rebates and enterprise income tax in China follow Chinese rules and are for your Chinese accountant; this guide doesn't cover them.
• If the platform asks for a W-8BEN-E: a foreign company paid by a U.S. payer may be asked for a W-8BEN-E to document non-U.S. status. See yclcpa.com/w8ben.

Once goods are in a U.S. warehouse, you are a merchant selling in the U.S.: someone must be importer of record and pay duties; the states where inventory sits give you physical presence; Temu collects sales tax from buyers at checkout, but state income and franchise taxes are yours; and U.S. sellers over the threshold get a 1099-K. Your U.S. entity files federal and state returns every year, and a foreign-owned company also files Form 5472.

• Importer of record (IOR): if your U.S. company is importer, it registers with CBP, and formal entries (generally over $2,500) need a customs bond. Under DDP the forwarder is importer, and the duties, entry liability and refund claims are in its name. Declared value is generally the transaction value.
• Duties go into inventory cost: purchase price, inbound freight, duties, brokerage and delivery to the warehouse are inventory cost, deducted as cost of goods sold when items sell, not all in the year you pay the duty. When you buy from a related Chinese factory, the tax cost of the inventory generally can't exceed the customs value (Section 1059A).
• Inventory states: whether you use your own warehouse, a 3PL or a Temu partner warehouse, inventory in a state gives you physical presence there, which can mean sales tax registration, income tax or franchise tax. P.L. 86-272 generally does not protect sellers who store inventory in a state, and it doesn't apply to gross-receipts taxes like the Texas franchise tax or Washington B&O (see yclcpa.com/fba).
• Sales tax: Temu's terms say it collects sales tax from buyers at checkout, and state marketplace facilitator laws generally make the platform collect and remit on platform orders. Off-platform sales (your own site, wholesale, in person) are yours, and some inventory states still want the seller registered. North Carolina rules: yclcpa.com/salestax; your own site: yclcpa.com/stripetax.
• Form 1099-K: a U.S. seller paid more than $20,000 in more than 200 transactions in a year gets a 1099-K. It shows gross amounts, including shipping and amounts before refunds; your actual payout is net of platform charges and fines, so reconcile line by line from the settlement report (see yclcpa.com/1099k). If the name and TIN don't match, the platform must backup-withhold 24%.
• Source of income and ECI: Temu's terms say title passes to the buyer on delivery to the domestic carrier inside the U.S. A foreign person selling through a U.S. warehouse is generally earning U.S.-source business income, and it is quite likely to be effectively connected income (ECI). The permanent establishment article of the U.S.–China treaty may change the answer, so this is case by case, and a treaty position is disclosed on Form 8833 with the return.

An LLC owned by one foreign person that hasn't elected corporate treatment is disregarded for U.S. tax: the foreign owner generally gives the platform a W-8 (usually W-8ECI if there's U.S. business income), not a W-9 under the LLC's EIN; the LLC files pro forma 1120 + 5472 every year; and with U.S. inventory and business income, the owner also files a 1040-NR. If the LLC elects corporate treatment on Form 8832, it files Form 1120 and pays 21% federal tax.

• W-9 or W-8: the W-9 instructions say a disregarded entity with a foreign owner should give a W-8, even if the LLC has its own EIN. If the platform only offers a W-9 or asks for the LLC's EIN, ask the platform and follow your CPA's advice rather than filling in whatever fits (see yclcpa.com/w8ben).
• Pro forma 1120 + 5472: a foreign-owned single-member LLC with any transaction with its owner (capital, expenses paid, loans) files by April 15 each year, by fax or mail, not e-file. Each missed form starts at $25,000 (see yclcpa.com/5472).
• Electing corporate treatment on Form 8832: the LLC then files Form 1120 at the 21% federal rate, with Form 5472 attached if 25% or more foreign-owned; profits stay in the company and the owner doesn't file a 1040-NR for the LLC's business income. The election can be retroactive up to 75 days. Under Treas. Reg. §301.7701-3(c)(1)(iv), after an election that changes classification, you generally can't change again for 60 months (an election effective on the date the entity is formed doesn't count).
• Dividends: when a C corporation pays a foreign shareholder, dividends generally bear 30% withholding, reduced to 10% for a Chinese tax resident under the U.S.–China treaty with a W-8BEN or W-8BEN-E.
• No S corporation: foreign individuals and foreign companies can't be S corporation shareholders.
• Full analysis: W-9 vs W-8, the pros and cons of an 8832 election and the 60-month lock are covered at yclcpa.com/walmart; the C corporation election is at yclcpa.com/ccorp.

It depends on who you are, where the goods change hands and what other platforms you sell on. A Chinese factory doing only fully managed generally needs no U.S. company. A U.S. resident can start in their own name or with a single-member LLC. A foreign owner doing semi-managed or local selling usually uses a C corporation or an LLC that has elected corporate treatment. A Chinese factory with a U.S. subsidiary needs its related-party pricing in order.

Description: Each row is a type of seller, showing the usual entity, the tax form given to the platform, the annual federal filings and what to watch. The right choice depends on your facts.

Who you are	Usual entity	Platform tax form	Annual federal filings	Watch for
U.S. resident (citizen, green card holder, resident alien) as a local seller	Sole proprietorship or single-member LLC; consider an S corporation as profit grows	W-9 (SSN or EIN)	Schedule C and self-employment tax; Form 1120-S for an S corporation	1099-K reconciliation; state tax in inventory states
One foreign individual, goods in a U.S. warehouse	Disregarded single-member LLC, an LLC electing corporate treatment on Form 8832, or a C corporation	Disregarded: the owner's W-8 (usually W-8ECI); elected or C corp: W-9	Disregarded: pro forma 1120 + 5472 and the owner's 1040-NR; corporation: 1120 + 5472	ECI risk; the 60-month lock; dividend withholding
Chinese company on fully managed	No U.S. entity needed	W-8BEN-E if the platform asks	Generally none	Title transfer and importer terms in the contract
Chinese company + U.S. subsidiary, semi-managed or local	U.S. C corporation (subsidiary)	W-9 (subsidiary's EIN)	1120 + 5472; BE-13 within 45 days	Related-party pricing (§482), §1059A, matching customs values
Multi-platform seller (Temu + Amazon + Walmart + own site)	One U.S. company, books split by channel	Same name and EIN on every platform	As above	Reconcile each platform's 1099-K; look at inventory states together

• State of formation: Wyoming ($100 to form, annual report from $60) and Delaware are common. Inventory in California that meets California's "doing business" thresholds means the $800 minimum franchise tax; inventory in Texas means a Texas franchise tax report, with a $2,650,000 no-tax-due threshold for 2026 and 2027 reports and an information report due even below it. State comparison: yclcpa.com/llc; entity types in general: yclcpa.com/entity.
• BE-13 and BOI: a foreign person forming a U.S. company and holding 10% or more of the voting interest files BE-13 with the Bureau of Economic Analysis within 45 days. Companies formed in the U.S. no longer file BOI reports (see yclcpa.com/boi).
• ITIN: a foreign owner filing a 1040-NR for LLC business income without an SSN applies for an ITIN, usually with the return (see yclcpa.com/itin).

When the U.S. subsidiary buys from its Chinese parent or a related factory, the price must be arm's length (Section 482), and the customs value, transfer pricing and book inventory cost need to line up; the tax cost of inventory generally can't exceed the customs value (Section 1059A); and a U.S. company 25% or more foreign-owned reports its related-party transactions on Form 5472 every year.

• Price too high: the U.S. company runs persistent losses while profit stays in China, and the IRS can adjust under Section 482. Price too low: the customs value is understated, which is a customs risk.
• Document it: support the price with a margin or comparable-price analysis, and keep purchase contracts, invoices, entry documents and payment records matched.
• Form 5472 amounts: purchases, loans, expenses paid on the company's behalf and service fees all go on it; each missed form starts at $25,000.
• Full approach: see yclcpa.com/subsidiary.

The biggest difference is who is the seller and who sets the price. On Amazon, Walmart, Etsy and TikTok Shop local stores, you are the seller and set the price; the platform collects sales tax and issues 1099-Ks to U.S. sellers. On Wayfair you sell wholesale to Wayfair. Temu fully managed is closer to selling wholesale to the platform; semi-managed and local selling put you back in the seller's seat, but Temu influences price more than the other platforms do.

Description: Each row is a platform or model, showing the U.S. seller, main fees, fulfillment, who can join, sales tax, 1099-K and payouts.

Platform / model	U.S. seller	Main fees	Fulfillment	Who can join	Sales tax	1099-K	Payout
Temu fully managed	Temu (terms: sources and sells)	Not published; Temu approves the supply price and keeps the spread	Deliver to Temu's warehouse in China; Temu ships cross-border	Mainland China and Hong Kong businesses, by invitation	Temu collects from buyers	Generally not relevant for foreign suppliers	Per contract cycle
Temu semi-managed / local	Seller	No published general schedule; deposits and penalty rules	Ship from a U.S. warehouse or 3PL	Semi: Chinese businesses; local: U.S. businesses and residents	Temu collects at checkout	U.S. sellers over the threshold	Per back-end rules
Amazon	Seller	Professional plan $39.99/month, referral fees mostly 8%–15%, plus FBA fees	FBA or merchant-fulfilled	U.S. and international sellers (including China)	Amazon collects	Yes	Generally 14-day settlement periods
Walmart	Seller	No monthly fee; referral fees about 6%–15% by category	WFS or merchant-fulfilled	Application-based; mainly U.S. sellers, some international	Walmart collects	Yes	Per the seller agreement's settlement cycle
Wayfair	Wayfair (you are the supplier)	Wholesale price under the supply agreement	Drop ship or CastleGate warehouses	Supplier approval	Wayfair collects from buyers	Wholesale payments; check with Wayfair	Per contract terms
Etsy	Seller	$0.20 listing fee, 6.5% transaction fee, U.S. payment processing 3% + $0.25	Seller ships	Handmade, vintage and craft supply sellers	Etsy collects	Yes	Per Etsy Payments settings
TikTok Shop	Seller (except managed models)	About 6% referral fee in most categories (May 2026 schedule)	Platform logistics or approved warehouses	Local stores; cross-border stores by invitation	Platform collects	Yes	Per Seller Center rules

• Temu's strengths: huge traffic and strong conversion on low-priced goods; fully managed is easy for Chinese factories, with no U.S. operations or taxes to run.
• Temu's weaknesses: little pricing power, many promotion and penalty rules, thin margins; semi-managed and local sellers carry U.S. import, warehousing and tax themselves.
• Selling on several platforms: one U.S. company selling on several platforms reconciles each 1099-K separately and looks at inventory states together. For the full Walmart analysis see yclcpa.com/walmart; Amazon yclcpa.com/amazon and yclcpa.com/fba; TikTok yclcpa.com/tiktok; Wayfair yclcpa.com/wayfair; Etsy yclcpa.com/etsy; your own store yclcpa.com/shopify.

Download settlement and order reports from the back end every month and record gross sales, platform charges, penalties and deductions, returns and refunds, and shipping separately. Track inventory and cost of goods sold by unit, with duties and inbound freight in inventory cost. A fully managed supplier recognizes revenue at the supply price and records penalties and return deductions separately.

• Record revenue gross: Temu pays you net of charges. Record gross revenue and list each charge so the 1099-K reconciles.
• Penalties and deductions: platform fines are business expenses; fines paid to a government for violating the law are not deductible. A platform fine is not a government fine, so record what it was for.
• Returns: refunds reduce revenue; resellable returns go back into inventory, and write-offs need records.
• Samples, ads and promotional subsidies: record them separately; whether a promotion is your price cut or a platform subsidy changes the entry.
• Inventory counts: at year-end you need quantities and values by warehouse, tied to the 3PL's inventory reports. Small businesses with average gross receipts of $32,000,000 or less can use simplified inventory methods (see yclcpa.com/fba).

Pick the model and the entity first, then align your documents, settle import and warehousing, and finally set up your books and filing calendar. Work through this list in order.

Description: Read from top to bottom; each row is a step before onboarding and why it matters.

Step	What to do	Why
1	Pick the model: fully managed, semi-managed or local seller	Decides whether you need a U.S. company and whether you are importer
2	Pick the entity: individual, LLC, LLC electing corporate treatment, or C corporation	Decides W-9 vs W-8 and what you file each year
3	Get the EIN letter (CP 575 or 147C) and align the name, address and bank account holder	Onboarding is checked against the CP 575
4	Decide whether the platform gets a W-9 or a W-8	A wrong form brings 24% backup withholding or document requests
5	Choose the importer, broker and customs bond; agree customs values with the factory	Duties, refund claims, §1059A
6	Choose warehouses: your own, a 3PL or a platform partner, and in which states	Sales, income and franchise tax in inventory states
7	Product compliance and trademarks	Handled by testing labs and attorneys, to avoid delistings and detained shipments
8	Run the numbers: supply or retail price, duties, freight, returns, penalties	Temu's price pressure is real; check that you can make money first
9	Set up books: settlement reports, inventory and duty documents monthly	1099-K reconciliation and year-end returns
10	Build the annual calendar: BE-13, 1099s, state annual reports, April 15 federal filings	A missed Form 5472 starts at $25,000 per form

Example (hypothetical numbers, to show the method): Factory A in Shenzhen has sold on Temu fully managed for two years. In 2026 it wants to move some best sellers into a U.S. warehouse under semi-managed. The owner is a Chinese tax resident with no U.S. status. We compared two structures.

Option B's first year:

• Buys 10,000 units from Factory A at a customs value of $6 each, $60,000; duties at an assumed 37.5% rate, $22,500; inbound freight and brokerage $6,000. Inventory cost per unit = ($60,000 + $22,500 + $6,000) ÷ 10,000 = $8.85.
• Sells 9,000 units; Temu's settled payout (after platform charges) is $162,000; cost of goods sold is 9,000 × $8.85 = $79,650.
• U.S. warehousing and last-mile shipping at $5 a unit, $45,000; return losses and platform penalties $4,000; ads $6,000; bookkeeping, registered agent and other costs $8,000.
• Pre-tax profit = $162,000 − $79,650 − $45,000 − $4,000 − $6,000 − $8,000 = $19,350; federal corporate tax at 21% = $4,063.50.
• If the warehouse is in California and California's "doing business" thresholds are met, add the $800 minimum franchise tax and a California return. The 1,000 units left at year-end, $8,850, stay in inventory and aren't deductible this year.

Now the related-party side: if Factory A charges $12 a unit, the U.S. company's profit nearly disappears and the IRS can adjust under Section 482. If the entry declares $4 but the books carry $6, Section 1059A generally stops the U.S. company from deducting cost above the customs value. The customs value, contract price and book cost need to match.

Start with how you sell now and whether you have a U.S. entity, then look at where you want to go. Here are the common cases.

• Case A: a Chinese factory on fully managed only. Generally no U.S. company needed. Read the supply contract on title transfer, importer and penalties; give a W-8BEN-E if asked. Chinese taxes are for your Chinese accountant.
• Case B: moving from fully managed to semi-managed or a local store. Choose the entity first (usually a C corporation), then the importer and U.S. warehouse; plan purchase prices, customs values and transfer pricing with the factory; file BE-13 within 45 days.
• Case C: already selling through a foreign-owned single-member LLC. Check whether pro forma 1120 + 5472 and the 1040-NR were filed in past years, whether the platform has a W-9 or a W-8, and whether a Form 8832 election makes sense. File missed years first, with a reasonable-cause statement.
• Case D: a U.S. resident or U.S. company as a local seller. Give a W-9; report on Schedule C or the company return; reconcile the 1099-K to settlement reports; look at state taxes wherever inventory sits.
• Case E: selling on Amazon, Walmart, TikTok and Temu at once. Run it through one U.S. company with books split by channel; keep the name, EIN and address consistent across platforms; assess inventory states together.