Why an LLC for Amazon
Selling on Amazon.com with a US company makes it easier to get paid in dollars, open a US bank account and work with suppliers and platforms. The LLC is the entity non-resident sellers use most.
What Amazon usually asks for
When you register, Amazon verifies the company and its beneficial owners. Have ready:
- The LLC's formation documents
- The company's EIN
- A passport and proof of address
- A bank account that can receive payouts
- An international payment card
The tax interview
Amazon asks you to complete a tax interview. A single-member LLC owned by a foreigner is disregarded by the IRS: it is usually the owner's situation that is reported, often with a W-8BEN form. Answer carefully, as these answers decide any withholding.
Sales tax
In states with a sales tax, Amazon generally collects and remits the tax itself on sales made through its platform. Sales on your own website remain your responsibility, state by state.
The key point: inventory in the US
With FBA, your inventory is stored in US warehouses. Depending on the business, this can create a US trade or business, with income taxable at the federal level (effectively connected income) and obligations in some states. This is the big difference from a remote services business: have this point reviewed before you start.
Obligations that remain
As for any foreign-owned LLC: Form 5472 every year, an annual report depending on the state, and a registered agent. And in your country of residence, the local obligations.
Official sources
This article is for information only and is not legal or tax advice. The rules mentioned may have changed since the update date.
