I have a Florida LLC based in Miami and I want to start selling physical products to customers in Latin America (mostly Colombia, Mexico, and Chile). The LLC is currently just a holding entity with no operations. I don't have a US bank account yet but I'm in the process of opening one. My question is mainly about the tax and legal side: do I need to register anything in those countries, or can I just sell from the US and ship down there? Also, are there any restrictions from the US side that I should be aware of? I'm not asking for legal advice, just trying to get a realistic picture of what people here have dealt with.
cross-border
I want to use my Miami LLC to sell products to customers in Latin America
Selling from the US into LatAm is generally straightforward from the US side. The LLC doesn't automatically create foreign tax obligations just because customers are there. The bigger question is how the destination country treats the import. In Mexico, for instance, the consignee often has to deal with customs and import duties at the border. That's usually on the buyer unless you sell DDP.
Colombia has been tightening up on de minimis imports. If you ship small parcels, check the courier's guidance. A lot of sellers just use a fulfillment partner or a local importer of record.
Thanks. I should have mentioned the products are relatively low value, under $200 per order. Does that change the customs situation?
Under $200 is still above many de minimis thresholds. Chile's is low. You'll likely need to provide commercial invoices with HS codes and accurate values. If you're shipping DHL or FedEx, they'll handle the clearance but the customer pays duties. That can cause refused packages.
Are you planning to use a marketplace or your own store? That affects payment processing and whether you need a local entity. Marketplaces often act as the importer of record and handle taxes. If you go direct, you might need a fiscal representative in some countries, though for small volumes most people just ship and let the buyer deal with it.
Payment is the part that trips people up. Getting a US merchant account that accepts cards from LatAm is doable but expect higher chargeback rates. Some countries have currency controls or prefer local payment methods. If you don't offer those, conversion drops.
I was thinking of starting with my own Shopify store and maybe adding Mercado Libre later. The payment processing point is noted.
One US-side thing: make sure your LLC's activities don't trigger state sales tax nexus in other states if you warehouse inventory elsewhere. And if you're shipping from Florida, check if you need a resale certificate for suppliers. But for LatAm sales, the US side is mostly about maintaining good records for the IRS.