Can an e-commerce network marketing business from overseas do business in the US without any paperwork
A new network marketing company that is based in Hong Kong has been expanding in the US over the passed few months. Representatives of the company says that because it is an e-commerce company, they don't have to have any paperwork to do business in the US. The bulk of the income is generated by one penny auction site.The income, which can be very significant, is paid in one of 3 ways. 1) direct deposit from a bank in Hong Kong 2) check paid by a bank in Hong Kong 3) Cash directly from the representatives in the US. The income is not reported by the company to the IRS and not SSN is provided by the members. Here are my questions. 1) Can this kind of business be conducted in the US without paperwork to do business here 2) Can I be legally liable or be inprisoned for participating in this company 3) What are the tax consequences?