LLC for Amazon FBA sellers
Selling physical products to the public is exactly the activity an LLC was designed to protect. A customer injury claim, a trademark dispute or a supplier default lands on the company, not on your house and savings. Beyond protection, an LLC with an EIN makes Seller Central verification cleaner, lets you open a dedicated business bank account and card, and positions the brand to be sold later.
At a glance
Incofile forms the LLC, obtains the EIN, provides the registered agent and a US business address, and files the operating agreement and banking resolution you will need for the bank and for Amazon.
Do you need an LLC to sell on Amazon?
No — you can sell as an individual. You should want one as soon as you sell physical goods at volume: product liability is real, Amazon can suspend accounts and you want business and personal finances separate when that happens, and brands held in an LLC are easier to sell. Brand Registry and trademark ownership are also cleaner in a company name.
Which state should an Amazon seller choose?
If you live in the US, form the LLC in your home state. FBA inventory sits in Amazon's warehouses, but your business is run from where you live, and forming elsewhere usually means registering in your home state anyway as a foreign LLC — two sets of fees. If you live outside the US, you have no home state; Wyoming is the usual choice for low cost and privacy, with Delaware if investors are involved.
- US residents: home state
- Non-US residents: Wyoming (or Delaware for fundraising)
- Avoid "tax-free state" myths — income tax follows you, not the LLC's address
Sales tax, income tax and inventory
Amazon collects and remits sales tax on marketplace sales in nearly every state under marketplace facilitator laws, which removes most sales-tax work for FBA sellers. Income tax is different: a single-member LLC's profit is reported on the owner's return. For non-US owners, inventory in US warehouses can create US-taxable income; the treaty between your country and the US (if any) limits it, and Form 5472 is required every year regardless.
Setting up Seller Central with your LLC
Register the Amazon account in the LLC's legal name with its EIN, provide the state formation document and the operating agreement, use the LLC's bank account for deposits and its card for fees, and keep the business address consistent with the bank. If you already sell as an individual, Amazon lets you update the legal entity in account settings; have the EIN letter (CP 575) ready.
Which state should you choose?
What Incofile does for you
- Form the LLC in your chosen state
We prepare and file the formation documents, act as organiser and provide the registered agent in that state — your home address stays off the public record.
- Obtain the EIN
We apply to the IRS for your Employer Identification Number so you can open the bank account and set up payments.
- US business address and mail scanning
A real US street address for banks, marketplaces and payment platforms, with every letter scanned to your portal ($155/year).
- Operating agreement and banking resolution
The documents banks, Amazon, Walmart and payment processors ask for, prepared in your company's name.
- Compliance calendar in your client portal
Annual report deadlines, registered agent renewal and tax-filing dates, with reminders before each one — plus 24/7 access to every document.
Ready to set up your LLC the right way?
Transparent one-time pricing from $0 + state fee. Real humans answer your questions by email and chat, and your client portal shows every step of the filing.
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Amazon FBA Sellers — frequently asked questions
Can I move my existing Amazon account into an LLC?
Yes. Update the legal entity, tax information (W-9 or W-8BEN-E) and bank details in Seller Central after the LLC and EIN exist. Do not open a second account — Amazon treats duplicate accounts as a policy breach.
Do I need a resale certificate?
If you buy inventory from US suppliers, a resale certificate lets you buy without paying sales tax. Incofile can help you obtain one once the LLC is registered for sales tax where required.
Does an LLC protect me if a product injures someone?
It limits claims to the company's assets provided you keep the LLC properly separate (own bank account, contracts in its name, no mixing of funds). Product liability insurance remains sensible on top.
What about Walmart or Shopify?
The same LLC can run your Walmart Marketplace store, Shopify site and wholesale accounts — one entity, one EIN, one set of books.
How long does it take before I can list?
State approval 1–5 business days in most states; the EIN follows immediately for US owners or within 1–3 weeks for non-US owners. Many sellers list within two weeks.