According to the U.S. Chamber of Commerce in its “Commerce and Consumer Protection Division Annual Summary of Regulations” report, the Internal Revenue Service has identified five main tax rules that apply to all companies that do business online: a consumer protection rule that requires any company providing commercial finance to provide Social Security numbers; a business income tax rule that includes an online tax calculation requirement; a merchandise-related tax rule that requires that a company’s sales receipts be issued with a U.S. address; and a business identity theft and fraud rule that bar companies from shipping goods in bulk to another company that is not the recipient’s, but who does not have an international transaction routing number. These are only some of the many complex issues that govern today’s businesses and their use of technology. For small businesses, it is therefore important to consider options that are available to protect personal information and private business information while still maintaining adequate internet and email security for everyday operations.
When corporations and businesses are looking to set up a secure and safe ecommerce solution, they should first look to a qualified and experienced provider of this. A good ecommerce security provider will include the following: a password encryption system; a company limited liability entity; and a U.S. business address where shipments can be sent, and other necessary information that allows the shipping and delivery of goods. If you choose to purchase these services from an individual, you may not necessarily be obtaining the same ecommerce security level that you would from a large international organisation. It is also very important for a company to obtain the relevant documentation and to ensure that all of the documentation is in the appropriate format and that it complies with the applicable laws.
As per a report by the U.S. Chamber of Commerce, a large U.S. ecommerce concern was recently forced to shut its operations due to losses incurred in relation to unpaid debts, which had been caused by non-compliance of certain regulations. As highlighted by this report, a large global ecommerce concern was unable to satisfy all of its obligations in relation to tax matters and other regulations. As a result of this, the company had to cease trading and seek capital to continue operations. It is essential that ecommerce companies understand that if they wish to operate within the confines of the law, they must employ the services of a competent and qualified Ecommerce Security Provider with a background in the various areas related to ecommerce security. It is therefore important that you choose a qualified and experienced ecommerce security provider with a background in the above areas.
In addition to this, a U.S. company must also submit audited accounts, reports outlining its current status, management team and other relevant financial matters relating to the day to day operations. These will need to be submitted to the Board of Directors along with all relevant documentation relating to the year to date financial results. This information will allow any shareholders to assess the worth of the company and the current status in light of the risk that it may be facing in relation to the credit crisis. Finally, all shareholders will need to be informed about the expected date for the definitive resolution of the year to date financial results, which will then act as the basis for any share offer by the accredited investor, subject to the approval of the Board of Directors.