What does doing business in the US mean?

[abostonboy]

I have gotten a few different answers on this one.

If someone has an affiliate program that is in say the UK and recruits US webmasters who sell memberships to that porn site are they doing business in the US?

or

If I create feeder sites and citizens of Canada buy memberships from my site am I doing biz in Canada?

Just curious...

Regards,
lloyd

[basschick]

the way it was explained to me by two lawyers and an accountant is that you are actually doing the majority of your work here as an independent contractor or for yourself and/or your physical place of business is here.

if selling memberships to euro residents meant we were doing business there, we'd be having to deal with VAT, i believe.