U.S. citizens owe income tax on worldwide earnings no matter where they live or work, even if they run a business in China. Foreign entrepreneurs selling to U.S. customers can often structure their operations to pay zero tax. The difference comes down to citizenship and where you're based.
Really? Yeah. You have to pay taxes on your worldwide income. If you have a business entity in China, you have to report likely in China, but also you have to pay income taxes most likely in the US as well. Even if you move out there and start a business out there, it will be stuck paying US income taxes. Whereas we have foreign entrepreneurs that live outside of the US, maybe do fulfillment from China, and they have US customers and they can get away with paying a 0% tax.
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