Set up a US Company for Amazon FBA & E-Commerce

An e-commerce business in the USA is a company that generates revenue and profits from selling products or services online. An e-commerce business can be operated from any digital platform, such as smartphones, websites, apps, and online marketplaces like Amazon and Shopify. The transaction is through the payment gateway and requires shipping the products to customers.

Opening a company in the USA offers various advantages for international Amazon sellers. Establishing a legal entity in the country will enhance your business operations and also give you access to funding opportunities.

• Access to Amazon Programs :- Establishing a US company for Amazon FBA gives you access to Amazon programs like Amazon FBA and Amazon Brand Registry.
• Limited Liability :- Legal entities in the US, such as a limited liability company, offer limited liability protection for Amazon sellers.
• Simplified Financial Operations :- Having a US company for Amazon FBA allows you to open a business bank account, which simplifies financial transactions.
• Access to the Vast US Market :- Your Amazon business in the US will give you access to a vast local US market.

Recently, Amazon has updated its policies in the USA for all sellers. The major focus of the policy changes on Amazon FBA (Fulfilment by Amazon) reimbursements and fees, and a more stringent compliance for product authentication, updating the rules for inventory management, and stringent monitoring of customer communication.

To sell on Amazon USA, the legal and regulatory requirements include intellectual property rights, safety compliance, mandatory business documentation, and compliance with the US legal regulatory standards. It is also mandatory to complete your identity verification and set up tax and payment information.

• Provide Personal Information :- To legally operate your Amazon e-commerce business in the US, you need to provide personal information.
• Complete Verification :- Amazon will verify your identity documents and bank account details for confirmation.
• Product Compliance :- Your products will have to ensure compliance with the USA’s state and national laws.
• Set up Payment and Tax Information :- It is mandatory to have a business bank account in the USA for your Amazon seller account.

Yes, as a foreigner, you can own a company in the USA to sell on an e-commerce store like Amazon. You do not need to be a citizen of the country to establish a company and operate an Amazon store in the USA. You can open an LLC and sell through Amazon FBA, which is a program to sell globally through Amazon.

The foreigners selling on Amazon USA will have to pay both federal and state income tax, depending on where their products are being sold or stored. You will also be required to complete mandatory forms to certify your foreign status. However, if your country has a tax agreement with the US, you can claim reduced rates.

To handle banking and payments in the US as a foreign Amazon seller, you need a US business bank account to receive your Amazon pay-outs through the Automated Clearing House (ACH) transfers. Some banks in the US allow non-residents to open an account online if you have an EIN. If you prefer to transfer the earnings to your local bank account, Amazon also provides currency conversion services.

The best US entity for Shopify sellers will depend on individual business needs, but most e-commerce stores, including Shopify, prefer an LLC (either a single-member LLC or an LLC with two or more members). However, if you have plans to apply for funding and investment, you can choose a corporation entity.

Yes, foreign entrepreneurs can establish a single-member US LLC to sell on Amazon. For a US LLC legal entity, you will need to go through the company registration process as an LLC, with supporting documents and apply for an Employer Identification Number (EIN).

An e-commerce business is a thriving business in the USA that first requires company registration. To register your company to operate as an e-commerce business in the USA, you will have to complete the registration process, which will include choosing the right entity and applying for an EIN.

• Choose Business Structure :- An LLC is the preferred structure for most e-commerce companies in the USA.
• Reserve Company Name :- Select and reserve a company name that is available for trademark in the USA.
• Apply for Employer Identification Number (EIN) :- For business tax purposes, apply for an EIN from the Internal Revenue Service (IRS).
• Apply for Licenses and Permits :- Apply for industry-specific licenses and permits for your business activities in the USA.
• Open a Corporate Bank Account :- Open a local corporate bank account in the USA to facilitate the earnings from your e-commerce platform.
• Choose an E-Commerce Platform :- After completing the legal requirements, choose an e-commerce platform and build your online store to start operations.