If you’re wondering “do I need an LLC to sell on Amazon?” you’ve come to the right place…
In short, the answer is no, it is not required. However, there are reasons why you might want to consider setting up an LLC to sell on Amazon anyway.
In this article, we’ll explore these reasons and how you can make the most out of your LLC when you open a Delaware business bank account online (as an example).
Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.
Table of Contents
- Do I Need an LLC to Sell on Amazon?
- What Do I Need to Sell on Amazon?
- Frequently Asked Questions
- Ready to Explore Your Options?
Do I Need an LLC to Sell on Amazon?
As mentioned, you do not need an LLC to sell on Amazon. Instead, individuals can start selling on Amazon directly as a sole proprietorship. With that said, as we’ll explore below, there are benefits to forming an LLC.
But first, let’s cover some of the basics…
What Is a Limited Liability Company (LLC)?
A limited liability company is a legal business structure available in the United States. It is considered a pass-through entity as the profits are directly distributed to the individual members (owners) of the LLC based on their interest (ownership) in the entity. LLCs are popular because they allow business owners to separate their personal and business liabilities.
What Is a Sole Proprietor Business?
A sole proprietor business is an unincorporated business where an individual carries out business activities and is directly taxed (via personal income tax) on all profits of the business. Additionally, because the business is unincorporated, all of the business’ liabilities are transferred onto the business owner, which is one of the main differences between a sole proprietorship and a limited liability company.
Benefits of Forming an LLC to Sell on Amazon
Limited liability companies can offer a wide range of benefits to the business owner, not the least of which includes separation of liability. That said, there are other benefits to consider as well, including:
- Privacy through the use of anonymous LLC structures
- Ability to directly access business banking services
- Building separate credit history for your LLC to expand in the future
- And much more
What Do I Need to Sell on Amazon?
To start selling on Amazon, you need to register for an account and provide the required documentation. This includes government identification, tax identification numbers, legal name, address, and telephone number, along with bank account information.
If you are registering to sell through an LLC, you will need to provide additional company information, including company address and registration information, company tax identification information (EIN), and company bank account information.
If you are looking to open a business bank account for your LLC, you can use the other free resources available in the USA banking section of our website available above.
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Frequently Asked Questions
Below are three of the most common questions that we receive from people looking to sell products on Amazon. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Can I Sell on Amazon Without Having a Business?
Yes, you do not need to register a company in order to sell on Amazon. Instead, you can sell on Amazon directly as a sole proprietorship.
Do I Need a Business License to Sell on Amazon?
No, you do not need a business license to sell on Amazon. Individuals can start selling on Amazon directly as a sole proprietorship.
What Legal Documents Do I Need to Sell on Amazon?
To start selling on Amazon, you will need to provide your legal name, date of birth, government identification, tax information, bank account information, and your legal address.
Ready to Explore Your Options?
If you would like assistance navigating your banking options in the United States, we can help.
You can access GlobalBanks USA, our dedicated US account opening service, in just a few clicks.
GlobalBanks USA involves 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.
Of course, if you have any questions before deciding whether you would like to move forward, don’t hesitate to contact us directly!
