For those who don't know, Themeforest is the biggest Marketplace owned by Envato (Original Australian Company but expanding to USA startin 2016) where web-designer & developer sell their Website Templates (virtual goods). Authors make from $100s to Millions on it and many buyers and Sellers are from USA.
So these new changes to Envato Policy effects a lot of individuals and companies, as a result this will open new opportunities for CPA/Tax Accountants.
Here are most of the details about the new policy change: http://inside.envato.com/usa-tax-withdrawal-changes/
There are many complicated questions that can arise due to this new policies and due to which people will be looking for answers and here are few sample examples:
1) I am US-Author partnered with Non-US Author to sell on Themeforest, which options will let us save more whether declaring as a US or Non-US author?
2) I was selling on Themeforest as a side business, declaring it on IRS might conflict with my full-time job.
3) Should I register as a corporation or sole proprietorship.
and so on.
I have many more questions that needs to be answered and I am sure there are many like me so I hope someone would be able to assist.
Best to talk with your Tax Preparer about this.
I suggest H&R Block Executive Tax Services. They're highly competent.
If you're a US Citizen you're taxed on 100% of your global income anyway. If you haven't been paying tax on 100% of your income, your best action is to immediately work with your Tax Preparer + file tax amendments for last three years, declaring your income + paying back taxes + penalties incurred.
If more than three years apply, then ask your Tax Preparer how to handle this.
Rule of thumb: Trying to evade taxes is a serious matter these days. If amounts are large enough, you can fall under RICO (money laundering laws). You don't want this.
Start as a Sole Proprietorship + talk with your Tax Preparer about your specific situation to determine if another entity might be useful (Corporation).
If you're making a truck load of cash, read up on Transfer Pricing + consider having your income for this enterprise flow into an IDC in a non-US jurisdiction.
