Best state for llc for amazon fba account manager [Guide]



Last updated : Aug 7, 2022
Written by : Glen Feely
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Best state for llc for amazon fba account manager

Which US state is best for Amazon business?

  1. Your home state. Being a US citizen, you almost don't have any difficulties in registering the LLC and operating your Amazon business.
  2. Delaware – best state for eCommerce business.
  3. Wyoming – one of the states with the lowest tax.
  4. Nevada – the state of various supporting programs.

Should you get an LLC for Amazon FBA?

In short, no. You do not need an LLC to sell on Amazon. You can start selling immediately under your name as a sole proprietor. If you are beginning to explore ecommerce and want to test the waters of selling on Amazon, having a sole proprietorship is perfectly fine.

What is the best state to register an LLC in?

  • Delaware is the most popular state to file an LLC in because it has a strong reputation for being business-friendly and offers a fast filing process with increased protection for owners.
  • Wyoming offers low fees and great tax benefits for people looking to start an LLC.

Can an LLC have an Amazon account?

An LLC can give your Amazon FBA business a separate legal identity, distinguishing it from you and your personal assets. Any issues with your business won't impact you personally, even if someone ever sues you for selling a faulty product on Amazon.

What cities use Amazon the most?

  • New York, NY.
  • Los Angeles, CA.
  • Miami, FL.
  • Las Vegas, NV.
  • Portland, OR.
  • Phoenix, AZ.
  • San Diego, CA.
  • Seattle, WA.

What business type is an LLC for Amazon?

Amazon Seller as an LLC You can also set up a business to sell on Amazon as an LLC (limited liability company). Unlike a sole proprietor who runs an unincorporated business, an LLC exists as its own legal entity separate from the owners.

How do I change my Amazon seller account to LLC?

It is fairly easy to update your Amazon seller's account to LLC, just follow these steps: In the account settings on Amazon Seller Central, change your account to professional under "Your Services". Account settings - change selling fees charge method on file and the bank deposit details on file to your new ones.

Do I need a tax ID to sell on Amazon?

Amazon requires sellers to provide a tax identification number so that they can identify sellers and report sales to the IRS. Most businesses will need to provide an EIN, but some businesses—such as US-based sole proprietors with no employees—can use their SSN instead.

Why is Delaware the best state to form an LLC?

Delaware is often considered one of the best states to form an LLC because it has limited fees and tax obligations. In fact, many businesses choose to form an LLC in Delaware even if they don't intend on doing business in Delaware.

Is Texas good for LLC?

Texas offers many advantages to LLCs formed in the state. Notably, its business environment and economic strength, asset protection for the members of the LLC, tax benefits, and a great deal of flexibility. If your business has a physical location in Texas, it is probably best to form your LLC in Texas.

Is Florida a good state to form an LLC?

Yes, Florida is a good state to establish your LLC in. Some of the benefits include: Protection of your personal assets. Pass-through taxation.

Do I need an LLC to start dropshipping?

The answer is simply yes. If you want to do business while protecting your dropshipping company and personal assets, you'll need an LLC. It's such a system to lawfully build your online store. It'll help you stand on the safe side.

Do you need a business bank account to sell on Amazon?

In order to do so, you'll need a merchant account – a special account to gather the transactions coming from your customers. This type of account is necessary for eCommerce sellers. And it can only be created and authorized with your business banking.

What is a sole proprietorship vs LLC?

An LLC exists separately from its owners—known as members. However, members are not personally responsible for business debts and liabilities. Instead, the LLC is responsible. A sole proprietorship is an unincorporated business owned and run by one person.

Where are most Amazon sellers located?

  • Japan: 173,483.
  • Canada: 163,595.
  • Mexico: 51,087.
  • Australia: 24,227.
  • UAE: 20,842.
  • Brazil: 15,605.
  • Turkey: 5,987.
  • Singapore: 1,721.

Which country buy most from Amazon?

With 314 billion U.S. dollars in net sales, the United States were Amazon's biggest market in 2021. Germany was ranked second with 37.3 billion U.S. dollars, ahead of the UK with 31.9 billion.

Where do Amazon sellers live?

Location: Where do most Amazon sellers live? Nearly half (49%) of all Amazon sellers surveyed live in the United States, followed by China (7%), the UK (7%), Canada (7%), and India (4%) . The remaining 25% are located in both English-speaking and non-English-speaking countries throughout the world.

Is Amazon in every state?

Amazon now collects sales tax on orders in all 45 U.S. states that have a state sales tax. And that policy change freed up Amazon to locate its distribution centers throughout the country.

What are Amazon's main markets?

Using Amazon you can currently sell on 14 marketplaces: USA, UK, Germany, France, Canada, Japan, India, Italy, Spain, Mexico, Brazil, Australia, Singapore, and the UAE.

Which business entity structure is recommended for Amazon sellers?

LLC (Limited Liability Company) LLCs are probably the most common entity structure for Amazon sellers besides sole proprietors. An LLC operates as its own legal entity kept separate from your personal assets, keeping them safe in the event of a lawsuit. There are a number of taxation options for LLCs.


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Best state for llc for amazon fba account manager


Comment by Valerie Gonsalez

guys if you understand taxes here's what a lot of business owners do they go hmm cpa they must be smart they do the same thing with large oh he's a lawyer he must be smart no that doesn't mean jack okay today i'm going to walk you guys through what kind of business should you be picking it doesn't matter if you're doing real estate amazon fba a coaching company which we do all three of those or something else it's so important you understand the different business structure options and each of these have varying levels of risk tax advantages and liability protection and if we have any questions along the way make sure you post them below and we'll answer them for you first thing you need to know step number one what is the federal tax id and why does that matter a federal tax id is simply an id that identifies you to the irs when the time comes assuming that you are living in the u.s you're a united states citizen you have to pay income tax and that income tax will go to the u.s government and in some states also collect that the federal tax id number is the number that identifies you to the irs so they can say okay this identity or this business owes taxes now the federal tax id is going to vary based on one of the business structures that you choose there are multiple business structures and i'm going to share with you guys the main ones first of all the most popular the most common you've probably heard it many times is an llc it stands for limited liability company it was actually started in 1977 it is state based an llc has nothing to do with the federal government kind of like an s corp has nothing to do with a state and i'll explain in 1977 states decided there were some companies who wanted to have the taxation of a sole proprietorship also known as pass-through tax but they wanted the advantage of the limited liability that a c corporation provides so what an llc does it's really unique is it allows you to have pass-through income every time you make money there technically is no money owned to the government by the company only by you as the taxpayer even if you're a partnership within an llc it's the same thing there could be two of you it's a partnership llc let's just say one of you receives five hundred thousand the other person receives five hundred thousand each of you are going to pay income tax on what you received but when it comes to debt when it comes to lawsuits anything like that your liability is reduced greatly when you are an llc why is that well because you filed with the secretary of state and one of the states in the u.s and if someone was to sue you or you had a debt you and your personal assets are not at risk there are lawyers in this world i kid you not you gotta love them who their full-time job is to find companies that are sole proprietorships who are selling high risk products you know how they make their money they find an upset customer who had a supplement or something like physically huge risk they make sure that the company is a sole proprietorship and then they say come on let's get together and let's go sue their butt and that's how they make money because that company was a sole proprietorship so if you choose to be a sole proprietorship and you sell a high-risk product or you make a lot of money you're a much bigger target than if you're a limited liability company or a c corporation which has what's called limited liability where you can only sue the company identity not the individual so i have a question set yeah go for it so does that mean a single member limited liability company is the same thing as a sole proprietorship except for the limited liability great question so if you're a single member limited liability company you're still a limited liability company you still have limited liability but if you're a sole proprietorship you don't have that liability so there's a sole proprietorship is one kind of business identity in a sole proprietorship you and the company are one in the same there's no difference between you in fact as a sole proprietorship there's no reason to get an employer identification number unless you're trying to avoid the risk of identity theft your social security number is right here federal tax id exactly your federal tax id it's the same thing to the irs if you are a single member llc you're still taxed like a sole proprietorship but it is harder for someone to come after your personal bank account your house your car your favorite dog like they literally cannot come after your personal i mean they can still sue you but chances of them winning are like almost like nothing and no lawyer is going to waste time on that end because the liabilities now shifted to the company instead of the individual exactly and that's the only difference between those two types exactly and that's where people get really confused they think in their mind that well i have a company and me we're one in the same even just for growing your business this is so important you need to have in your just in your mind alone a separate identity from your company this is the problem that a lot of new entrepreneurs struggle with they are so attached they are so engrossed with that new company that it's hard for them to see it as a separate identity and therefore they make emotionally driven decisions based on how they're doing in the day based on a gut-feeling impulse and the company ends up dying and the company's riding the wave of their emotional roller coasters but when you treat your company almost like a newborn baby it's not you i know it's an extension of you just like your child but it's like over here it's separate it is a separate identity now what would you do with a newborn baby would you allow your emotions to affect how you treat that newborn baby hopefully not especially if they're a newborn now as a parent i'm sure we can all relate if you're a parent out there yeah absolutely there are times where you made emotionally driven decisions and they were dumb decisions myself included with a newborn baby you can't just decide because you're not in the mood to not be there for the baby one day they need milk or formula they need help they need comfort they're pooping their diapers they need their diapers to be changed and their butt clean like you have to treat your company like that in the early stages in other words no matter how you're feeling you're still going to be there for that newborn baby but if you're so tied up with your company as if it's one and the same with you then your moods are going to wreak havoc on the company you have to have an objective professional separate identity from your company now that's just a mindset thing right now let's talk about legally for a minute legally if you're a sole proprietorship you and your company are one in the same your federal tax id is your social security number technically you could go out and apply for an ein but there's really almost no reason because it's not gonna change your liability it's not gonna change your taxes do i have to file to be a sole proprietorship or is that just default great question it's default you k


Thanks for your comment Valerie Gonsalez, have a nice day.
- Glen Feely, Staff Member


Comment by grunyidor1

you decided to become an entrepreneur and jump into entrepreneurship first of all congratulations but when it comes to running your own Amazon business you have to register a company at some point today's video I want to go over llc's s corporation's C corporations the difference between each one as far as taxes and kind of how you'll do accounting also when is best to actually form an LLC or to register your company when should you do that is it required and how much does it cost I'll cover all of that in today's video welcome to the channel if you're new welcome back those are my subscribers my name is Brian Noonan I'm a full-time Amazon FB seller mentor and Coach right here on my YouTube channel I release weekly videos covering everything Amazon e-commerce nfts if you enjoy that type of content do me a favor right now head on down and press subscribe I can see each and every one of you who take just a minute to press subscribe and I appreciate each of you my job right here on this channel is to help educate teach impact as many lives as possible sharing and duck meeting my journey of how I went from a struggling broke drug addict eight years ago to being able to run and own multiple six-figure online businesses let's jump into it alright guys well welcome into this lesson I'm excited to share with you and go over something that's kind of complicated uh it was definitely confusing for me in the very beginning when I first jumped into entrepreneurship and that was business registration or business or company setup you know when do you set up a company how much does it cost that can be really confusing and then when it comes to like accounting and bookkeeping I've never been really great with Excel sheets and bookkeeping and accounting stuff so I'll go over the best kind of softwares to help you with bookkeeping and accounting for your new business I'll go over business entity types and also tax statuses like S corporation uh and how to save taxes when it comes to the the profits and the earnings you make from your business so the things I'm going to be going over today is you know Amazon business or company registration and setup I'm going to go over accounting and bookkeeping and taxes so stay tuned lots to cover in here if you need to you know watch this video a couple times don't worry about that because for me in the very beginning this took me like at least six months to learn all of these different things uh you know reading and watching and keep and keep on learning because it's complicated right it's not just taxes you have to learn but it's also like you know paying any employees once you have va's on your team uh withholding payroll taxes and then paying income taxes and then write-offs and all of this so this will be a great video that so to get you started so you kind of understand the different types of business entities there are when it comes to accounting what do you do and when it comes to paying your employees withholding payroll taxes paying taxes you'll know you'll be covered there as well to have at least a basic good understanding of all three of those things so there's a sole proprietorship there's an LLC there's s corporations there's C corporations and non-profits obviously we're in it for profit so we're going to be uh usually these two are going to be the most popular options for Amazon sellers for e-commerce Brands and LLC or S corporation the most popular by far is LLC guys limited liability Corporation this is um probably what ninety percent of Sellers and new small businesses go with is setting up an LLC but I want to explain in this video why I believe that S corporation is even better because it can save you like a lot on taxes several thousand dollars per year by going with an S corp which is a tax status uh by going with a s Corporation or C corporation so um it's also going to be a little bit different based on if you're in the USA or not in the USA and also what state you know what state are you in that's going to be a factor too all right when could you file an LLC or S corporation so to sell on Amazon you do not have to have a company or a business set up they will let you just sign up for an Amazon seller account with your personal name and details your personal bank account your personal credit card uh and your personal social security number you would just sign up for a seller account that's how I started just all my personal name and details you can set up your seller account that way and then maybe later on either before you launch right after you launch whenever you can afford to do so it's going to be a couple hundred dollars I'll go over the pricing here in a minute it's going to be a couple hundred dollars to fully set up your new LLC or S corporation so either right before you launch right after you launch maybe after you start making some profits you will want to go ahead and set up this business entity so you can keep all your expenses and incomes and earnings separate from your personal uh income if you are just on your personal uh name and details now for example you get like a like a statement at the end of the year almost like a W-2 statement of your wages or earnings from Amazon so that's what you use to file within kind of lumped in with your personal income okay if that's how it goes for taxes about so when should you file you can file now from the very beginning guys if you haven't set up your seller account or maybe you just did you can switch over your seller account so if you're currently uh you have your seller account and your personal name and details you can go ahead and follow these steps in today's video and go and register an LLC or S corporation go out and get a business checking account for that LLC get the EIN number from the IRS those are the three things a business bank account a business credit card or debit card checking account for the business and an EIN number from the IRS for the business which is like a tax ID for the business those are going to be the things that are required for the Amazon side of things that's what Amazon will request if you sign up as an LLC or S corporation now one thing is if you do sign up or you do have an LLC um what's it what's interesting is for tax interview or tax status you're still considered individual on a tax kind of interview question within Amazon's platform so even if you have an LLC you're still considered an individual for tax status so don't get tricked on that question during the tax interview part so if you've never signed up for Amazon seller account you can do this set up your LLC or S Corp wait you will need the bank account for the business open at least 60 days once you have the the business uh bank account business credit card you know open an LLC the seller account all in the business information or if you want to start uh be most easy uh today to just set up your seller account and your personal name and details and then switch it over uh to the LLC or S corporation once you have it you just update your business entity type your business address and your deposit and charge methods and then the tax inte


Thanks grunyidor1 your participation is very much appreciated
- Glen Feely


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