How to Start an LLC for Your Amazon FBA Business
Starting an Amazon FBA business can be an exciting and lucrative venture, but it's important to protect yourself and your assets by setting up a limited liability company (LLC). In this article, we'll go over every unique scenario possible, including how to start an LLC as a US citizen, non-resident, or without a social security number. We'll also cover why an LLC is important, how to file for one, and how to get an EIN.
Why You Need an LLC
An LLC, or limited liability company, is a legal structure that protects your personal assets in case of a lawsuit. If someone were to sue your business, they could only go after the assets within the LLC, not your personal assets like your home or car. This is important for Amazon FBA sellers because if a customer were to get hurt or sick from your product, you could be held liable. Additionally, having an LLC makes accounting and record-keeping easier and can provide tax benefits.
How to Start an LLC as a US Citizen
If you're a US citizen, the easiest and cheapest way to start an LLC is to file with your state. You can do this online through your state's secretary of state website or use a service like Zen Business or LegalZoom. Simply choose a name for your business, file the necessary paperwork, and pay the filing fee.
How to Start an LLC as a Non-Resident
If you're a non-resident, you can still start an LLC in the US. The best states to file in are Wyoming or Delaware, as they have the most friendly LLC regulations. You can use a registered agent service like Buffalo Registered Agents or Delaware Business Incorporators to file on your behalf. You'll also need to get an EIN and a US-based bank account and credit card.
How to Start an LLC Without a Social Security Number
If you don't have a social security number, you can still start an LLC. You'll need to file for an EIN, which is like a social security number for your business. You can do this for free online through the IRS website.
How to Get an EIN
To get an EIN, you'll need to have your LLC set up first. Then, you can apply for an EIN online for free if you're a US citizen. If you're a non-citizen, you'll need to apply by telephone or fax.
FAQ
Do I need an LLC to register for a seller account on Amazon?
Technically, no. You can use your personal information to register, but it's recommended to have an LLC for liability protection and accounting purposes.
Can I use a US LLC to sell on other Amazon FBA countries?
Yes, you can use the same LLC to sell on other Amazon FBA countries.
What states do you recommend for non-US residents to form an LLC?
Wyoming and Delaware are the most friendly states for LLC regulations.
Does your bank need to be in the same state as your LLC?
No, your bank can be located anywhere.
How can you get through the utility bill as a non-US citizen?
If you need a US utility bill, you can use a service like Delaware Business Incorporators to get one.
Will filing in another state versus the one you live in cause issues or double taxation?
It's best to consult with a CPA or tax expert for this question.
Starting an LLC for your Amazon FBA business is an important step in protecting yourself and your assets. By following the steps outlined in this article, you can set up your LLC and get started on your Amazon FBA journey with peace of mind.
