Hi,

We run a wedding directory thats doing well in the UK. We are entering the US market soon and will run a sub domain of the UK site as the US site. Billing is in dollars and paid via Pay Pal Pro into our UK account. We'll also be hiring the services of an account manager / sales person in the US and paying on commission.

What are the tax implications for us as a Uk partnership?
Should we be worried about the Us tax authorities requesting tax from our earnings in the states or just pay UK tax and write off the commission payments to the agent as a cost?

I have heard scare stories and so wanted to double check prior to going on the run from the feds.

Many thanks,

Bob