As an Amazon FBA seller, becoming a limited liability company or LLC offers numerous benefits. One of the most popular reasons people opt to become an LLC instead of a sole proprietorship or partnership is limiting their liability. As an LLC, personal assets are protected if an employee, business partner, or the business is sued for negligence. Additionally, because LLCs don’t have a specific tax classification, owners can choose to file taxes as sole proprietors, partnerships, S -CORP, or C-CORP. Finally, obtaining an LLC is a quick process and relatively affordable.
If you want to apply for an LLC for your Amazon FBA business, I am here to show you how. As an Amazon FBA coach and success story, I can help you navigate the LLC process quickly and accurately. I am a seven-figure Amazon FBA seller and brought in 1.3 million dollars in sales my first year selling on Amazon, so I am here to help. Whether you are a US citizen or reside outside of the US, this guide will support you as you navigate the LLC process with ease.
LLCs for US Citizens
If you are a US citizen getting an LLC is a simple and straightforward process. You can simply go to your state’s website and apply for an LLC there. For example, California residents can use the California Secretary of State website to file for just $70.
If you want to use a service to file for you, I recommend a company called ZenBusiness. ZenBusiness files an LLC application for you in your state for just $49 plus state filing fees. They will also bill you annually to renew your LLC, saving you time as a busy business owner.
Another website you can try is LegalZoom. However, they are more expensive. They charge $79 plus state filing fees for nearly the same services as ZenBusiness.
LLCs for Non-Residents
If your country is on the Amazon FBA list of accepted countries, it may be easier for you to form a business entity in your home country. You can view the list of accepted countries here. For example, it’s beneficial to form a corporation in Canada and the UK, and LTD is a popular choice.
If you prefer to register as a US LLC, you can do that by following these steps.
To get your LLC in the US without a social security number, I recommend using Wyoming Registered Agents. With Wyoming Registered Agents, you can get an LLC in five to fifteen minutes for just $149 upfront and $49 per year. When you register for your LLC, you also get a physical US address for your business in Wyoming, where mail can be sent and forwarded to you.
To get started with Wyoming Registered Agents, simply:
- Enter your filing information
- Business entity type
- Company name
- Select “member-managed”
- Add business owners
- Select “annual compliance nominee service” to have Wyoming Registered Agents renew your LLC for you yearly
- Opt for a Wyoming business address with mail forwarding for the extra $99 per year
- Input contact information
- Finish and pay
Once you have your business address, you can get an EIN number. You will apply for the EIN through the IRS. To get your business EIN as a non-resident, you will need to call the IRS at 267-941-1099 and fill out IRS Form SS-4, Application for Employer Identification Number (EIN). While this process does not typically take long, the pandemic has caused it to take 1 – 3 months in some cases.
If you live in a country that is not on Amazon’s accepted country list, you will face unique challenges. You CAN work around the obstacles, but it’s challenging. For example, if you know someone or have a business partner that lives in an accepted country, they may be able to help you register your business. Additionally, you could attempt to use an IP address changer or VPN to make it appear as those you reside in a different country; however, I do not recommend this. You would still need to apply for a US LLC and obtain an Amazon accepted bank and credit card.
LLCs | Wrap-Up
Becoming an Amazon FBA seller isn’t as easy as it looks. There are multiple steps new sellers have to take to get their accounts up and running correctly. The first and most pertinent of which is registering your business entity. I strongly recommend registering as an LLC for the legal protections and tax benefits. As a US citizen, you can easily file for an LLC through your state’s website or with a service like BusinessZen and LegalZoom. If you are not a US citizen and would prefer to have a US LLC, companies like Wyoming Registered Agents are great for getting your LLC in addition to a US address, phone number, and mail forwarding. An LLC is required for obtaining an EIN, which you will need to sell your products on Amazon.
I hope this guide helped you explore your options and learn how to get an LLC for your business as a US citizen or non-resident.
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If you want to learn more about how to set up your Amazon Seller Central account the right way, check out this article. My YouTube channel is also here to keep you in the loop with the latest Amazon seller updates, so don’t forget to subscribe.
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