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No — Amazon does not require an LLC. You can register as an individual seller, complete Amazon’s online tax interview, and start selling. But most serious Amazon sellers form an LLC anyway: it shields your personal assets, gives you an EIN for tax paperwork and disbursements, unlocks Brand Registry once you hold a registered trademark, and looks professional to suppliers. For non-US founders, a US LLC also makes it easier to open a US business bank account and pass Amazon’s identity verification checks. This guide covers the decision, the FBA tax traps, and the setup path for foreign sellers in 2026.
Table of Contents
- Does Amazon require an LLC to sell?
- 6 reasons Amazon sellers form an LLC anyway
- What Amazon actually asks for: tax interview, EIN, bank, address
- The FBA sales tax nexus trap
- Best state for an Amazon seller LLC
- Step-by-step: from LLC to your first Amazon disbursement
- Banking: getting paid as a non-US Amazon seller
- What it costs and how long it takes
- FAQ
- Sources
- Conclusion
Does Amazon require an LLC to sell?
Amazon accepts two account types: individual sellers and business sellers (LLC, corporation, or other entity). As an individual, you provide your name, ID, credit card, phone number, and tax information, and can list products the same day.
The catch is that Amazon still needs real tax and banking details either way. During signup you complete Amazon’s online tax interview — W-9 for US persons and US-formed businesses, W-8BEN-E for foreign entities — and you need a bank account capable of receiving Amazon disbursements. The LLC itself is optional; the identity, tax, and banking infrastructure around it is not — and that is exactly where a US LLC earns its keep.
One more practical note: Amazon’s verification has grown stricter in recent years, including video verification calls for many new sellers. Sellers with a clean US LLC, matching EIN paperwork, and a real business bank account tend to clear these checks faster than individuals with a patchwork of foreign documents.
6 reasons Amazon sellers form an LLC anyway
1. Liability protection for private-label brands. Private-label sellers are the brand owner — a defective product or misleading claim can draw lawsuits and Amazon policy strikes. An LLC separates your personal savings and property from the business. (It is not a magic shield — you still need product liability insurance and safe sourcing — but it is the foundation.)
2. The tax interview gets simpler. A US LLC gets an EIN and completes the W-9 side of the tax interview; foreign individuals without an EIN face the W-8BEN-E path, which adds withholding complexity. See our guide on how to get an EIN as a foreigner.
3. Brand Registry. Amazon’s Brand Registry (A+ Content, brand analytics, counterfeit protection) requires a registered trademark, filed in a legal owner’s name — sellers overwhelmingly use their LLC. Building a brand, not flipping arbitrage? Form the LLC, then file the trademark in its name.
4. Separate business banking. Amazon disburses to an account in your seller account’s name. Mixing payouts with personal money is a bookkeeping mess that weakens the LLC’s liability separation.
5. Wholesale relationships. Distributors and freight forwarders take you more seriously with an EIN and a business name; many will not open wholesale accounts for an individual buyer.
6. Cleaner taxes. A single-member LLC owned by a non-US founder is a “disregarded entity” for US federal tax — profits flow to you — but it still files Form 5472 information returns with the IRS each year. Documenting a real business with an EIN, a bank account, and books is far easier than untangling a personal account full of mixed Amazon transactions. US-formed LLCs are also permanently exempt from FinCEN’s BOI reporting under the August 11, 2026 final rule (effective August 14, 2026) — even foreign-owned ones.
What Amazon actually asks for: tax interview, EIN, bank, address
Legal entity information. Your exact legal name — personal or LLC — matching your government ID or formation documents. Mismatches are the most common cause of verification delays.
Tax identity. The tax interview assigns a W-9 (US persons/entities) or W-8BEN/W-8BEN-E (foreign persons/entities); a US LLC with an EIN takes the W-9 route wherever the owner lives. EINs are free from the IRS; foreign applicants fax Form SS-4, which typically takes several weeks — start early.
A bank account for disbursements. Amazon pays out roughly every two weeks to an account with US routing and account numbers, in the name on your seller account. A Wise Business account or a traditional US business bank account both work — see the banking section below for the non-US founder reality check.
A business address — not your registered agent’s address. Amazon asks for a business address and may verify it by postcard or utility bill. A registered agent’s address is a legal contact point for lawsuits and state mail — not a business address. Most non-US sellers use their home address abroad or a virtual mailbox with a US street address; keep it consistent across Amazon, your bank, and tax documents.
Phone number and charge method. A phone number for verification codes and a credit card for Amazon’s fees. The Professional plan is currently $39.99/month on Amazon.com; the Individual plan charges $0.99 per item instead. Sellers doing real volume take the Professional plan.
The FBA sales tax nexus trap
Your inventory creates tax obligations where it sits. When you send products to Amazon FBA, Amazon distributes your inventory across its fulfillment centers. Inventory stored in a state creates physical sales tax nexus in that state, even though you never chose the warehouse and have never visited. FBA sellers routinely end up with physical nexus in a dozen or more states purely because of where Amazon stores their goods.
But Amazon collects the sales tax for you. Every state with a sales tax now has marketplace facilitator laws, and Amazon is registered as a facilitator in all of them — it calculates, collects, and remits sales tax on your marketplace sales. You do not add tax at checkout or file those returns. For the full picture, read our sales tax nexus guide for non-resident LLC owners.
So why does nexus still matter? Three reasons. First, physical nexus can still trigger registration obligations — some states want you registered as a foreign entity or holding a seller’s permit even when the marketplace remits. Second, economic nexus thresholds ($100,000 in sales is the common benchmark, though it varies by state) create obligations independent of FBA inventory. Third, if you ever sell off-Amazon — your own store, wholesale — the marketplace shield disappears and your nexus footprint becomes your problem directly.
The honest bottom line: FBA nexus is genuinely complicated and the rules differ state by state. This article is not tax advice — before you scale FBA inventory, have a US tax professional who works with ecommerce sellers review your nexus footprint. A consultation costs far less than a multi-state compliance mess discovered two years in.
Best state for an Amazon seller LLC
Here is where Amazon sellers overthink. Your LLC’s home state matters less than forums suggest, because Amazon — not your LLC — decides where your inventory sits. No home state exempts you from FBA nexus elsewhere. The smart play: pick the cheapest, simplest home state, and foreign-qualify only where a tax professional says you must.
Wyoming and New Mexico are the two defaults for non-US founders. Wyoming: $100 filing, $60/year annual report. New Mexico: $50 filing, no annual report fee. (Verify current fees on each Secretary of State site.) Neither taxes LLCs at the state level, both allow full foreign ownership, and both keep ongoing compliance near zero. Our best-state guide for non-resident founders compares the full field.
Skip Delaware for a small Amazon store. Delaware’s LLC annual tax is $400 per year starting with tax year 2026 (raised from $300 by Delaware House Bill 400, effective January 1, 2026). Delaware suits startups planning venture funding; for a bootstrapped private-label business it is simply the most expensive mailbox you will ever rent.
Methodology: based on published state filing and annual fees (checked October 2026), no state-level LLC income tax, and foreign-ownership rules — not affiliate relationships. Verify fees before filing.
Foreign qualification: the part sellers skip. States where you are genuinely “doing business” (definitions vary) may require foreign-entity registration — typically $100–$300 per state plus annual reports, separate from sales tax registration. Not legal advice — get a professional read.
Step-by-step: from LLC to your first Amazon disbursement
The sequence for a non-US founder, in order:
Step 1 — Form the LLC in Wyoming or New Mexico. Registered Agents Inc forms your LLC for $100 + state fee — state filing, domain name, website, and one year of free registered agent service (check current pricing). Filings typically complete in a few business days.
Step 2 — Get your EIN from the IRS. Free from the IRS. Foreign applicants without an SSN fax Form SS-4, which usually takes 4–8 weeks — the longest step, so file it the day your LLC is approved. Our EIN walkthrough for foreigners covers the fax process line by line.
Step 3 — Open your business bank account. You need US routing and account numbers in your LLC’s name before Amazon can pay you. For most non-US founders this means Wise Business, set up in days once you have the EIN and formation documents.
Step 4 — Register your Amazon seller account. Take the Professional plan if you will sell more than ~40 units a month. Enter your LLC’s exact legal name, complete the tax interview (W-9 with your new EIN), add your bank account, and provide your business address. Expect identity verification — have your passport, formation documents, and a bank statement ready.
Step 5 — File for your trademark and enroll in Brand Registry. File a USPTO trademark application in your LLC’s name (currently a few hundred dollars in USPTO fees per class; check current USPTO pricing), then enroll in Brand Registry for A+ Content, brand analytics, and counterfeit tools.
Step 6 — Set up tax settings and start selling. Confirm your tax settings show Amazon collecting sales tax as facilitator. Keep your books from day one — a foreign-owned LLC files Form 5472 information returns with the IRS each year.
Banking: getting paid as a non-US Amazon seller
Amazon disburses in USD to a US-routing account matching your seller account name. Two realistic paths for non-US founders:
Wise Business — the default first pick. Wise gives your LLC real US account details (routing + account number), supports Amazon disbursements, and opens remotely with your formation documents and EIN. Our Mercury vs Wise vs Relay comparison walks through the tradeoffs in detail.
Mercury — only if you are eligible. Mercury maintains a published prohibited-country list covering roughly 48 countries of founder residence — including Pakistan, Bangladesh, Nigeria, and the Philippines. If you live in one of those countries, your application will be declined, so do not build your plans around it. Only consider Mercury if your country of residence is not on its published list (verify the current list before applying). For blocked countries, Wise Business is the default.
Either way, open the account in the LLC’s legal name with the EIN, and keep Amazon payouts strictly separate from personal money — commingling undermines the liability protection you formed the LLC for.
What it costs and how long it takes
Approximate first-year costs, Wyoming LLC (October 2026; verify current figures):
| Item | Approximate cost |
|---|---|
| LLC formation via Registered Agents Inc | $100 + state fee |
| Wyoming state filing fee | ~$100 |
| Wyoming annual report | $60/year |
| EIN from the IRS | Free |
| Registered agent (year 1) | Included in the $100 bundle |
| Wise Business account | Free to open; conversion fees per transfer |
| Amazon Professional plan | $39.99/month (optional; Individual plan is $0.99/item) |
| USPTO trademark (per class, optional but recommended) | A few hundred dollars — check current USPTO pricing |
Timeline: LLC formation takes a few business days; the EIN via faxed Form SS-4 is the bottleneck at roughly 4–8 weeks; Wise Business setup takes days once the EIN arrives; Amazon verification takes days to a couple of weeks. Budget 6–10 weeks from starting the LLC to your first disbursement — most of it waiting on the IRS.
FAQ
Can I sell on Amazon without an LLC?
Yes. Amazon lets you register as an individual seller — no LLC required. The tradeoff is personal liability: as an individual, your own assets are exposed if a product causes harm or a supplier dispute escalates. Most sellers start as individuals to test the waters and form an LLC once revenue justifies the roughly $160–$200 first-year cost in Wyoming or New Mexico.
Can a non-US resident open an Amazon seller account?
Yes. Amazon accepts sellers from most countries — you need a valid passport or government ID, a phone number that receives verification codes, a credit card, and completed tax documentation. Non-US individuals complete the W-8BEN tax interview; a US LLC owned by a foreigner completes the W-9 side using its EIN. Expect a video verification call, and keep your name and address identical across every document.
Do I need an EIN to sell on Amazon as a foreigner?
Not strictly — a foreign individual can complete Amazon’s W-8BEN-E tax interview without an EIN. But an EIN makes everything smoother: US LLCs use the W-9 path, and you need the EIN anyway to open a US business bank account. The EIN itself is free from the IRS; foreign founders apply by faxing Form SS-4, which takes about 4–8 weeks, so start early.
Does selling through FBA create sales tax nexus?
Yes — inventory stored in an Amazon fulfillment center creates physical sales tax nexus in that state. The good news is that Amazon, as a registered marketplace facilitator in every sales-tax state, collects and remits sales tax on your marketplace sales for you. Nexus can still trigger other obligations like foreign entity registration, so have a tax professional review your footprint before you scale.
Which state is best for an Amazon seller LLC?
Wyoming or New Mexico: low filing fees (~$100 and ~$50), minimal annual compliance, no state LLC income tax. Avoid Delaware for a small Amazon business — its LLC annual tax is $400 per year from tax year 2026. Your home state does not shield you from FBA nexus elsewhere; pick cheap and simple at home, and foreign-qualify where a professional says you must.
Can I use Wise for Amazon disbursements?
Yes. A Wise Business account provides US routing and account numbers in your LLC’s name, and Amazon accepts it for disbursements. It is the default for non-US founders, especially those resident in the roughly 48 countries on Mercury’s published prohibited list (including Pakistan, Bangladesh, Nigeria, and the Philippines), where Mercury applications are declined. Open the Wise account in your LLC’s exact legal name to match your seller account.
Sources
- Amazon Seller Central, “Sell on Amazon” registration requirements and tax interview documentation — sellercentral.amazon.com (checked October 2026)
- Amazon, Brand Registry eligibility (registered trademark requirement) — sellercentral.amazon.com
- IRS, Form SS-4 and EIN application guidance for foreign applicants — irs.gov
- Wyoming and New Mexico Secretaries of State, LLC filing fees — sos.wyo.gov, sos.nm.gov (checked October 2026; fees change, verify before filing)
- Delaware Division of Corporations, LLC annual tax ($400 from tax year 2026 per House Bill 400) — corp.delaware.gov
- FinCEN final rule, August 11, 2026 (effective August 14, 2026), exempting US-formed companies from BOI reporting — fincen.gov
- Tax Foundation, state sales tax and marketplace facilitator law summaries — taxfoundation.org
Conclusion
You do not need an LLC to start selling on Amazon — but if you are building a real brand, especially as a non-US founder, a US LLC is the single highest-leverage step you can take: liability protection, an EIN for the tax interview, and a clean path to a US business bank account. Use Wise Business for disbursements, get professional advice on FBA nexus before scaling, and keep your books clean from day one.
Ready to set up the entity behind your Amazon brand? Form your LLC with Registered Agents Inc — $100 + state fee covers your state filing, a domain name, a website, and one year of free registered agent service (check current pricing). Then work through our EIN guide for foreigners and the sales tax nexus guide to finish your setup the right way.