In this comprehensive guide, I talk about how to form an LLC for amazon fba. I will outline all the possible options so if you’re a US citizen or if you are live in those countries that aren’t approved to sell on amazon what should you do for your business for amazon fba.
How to Form an LLC for Amazon FBA (2022)
- 1 Why LLC is Important for Amazon FBA
- 2 If You are Not in an Accepted Country by Amazon
- 3 How to Form an LLC For Amazon FBA
- 4 Step 01: Name your LLC
- 5 Conclusion
Why LLC is Important for Amazon FBA
You have a lot of options when it comes to how you structure your business. One great option is the limited liability company (LLC). An LLC is a hybrid of a corporation and a partnership.
It has some benefits of partnership, like limited liability and tax treatment, but it’s also easier and less expensive to form than a corporation.
An LLC is very important for amazon fba especially when you start to scale do private label just because if you do it on your personal account then you’re personally liable if anything happens god forbid and gets hurt then you’re personally liable they can sue they can go after your personal assets.
With an LLC your personal assets can be protected from that, so they can only sue for what the business is worth or what the business owns. An LLC is sued for negligence; the owner’s personal assets are not at risk. That’s why I would advise LLC for amazon fba.
If You are Not in an Accepted Country by Amazon
If you’re not in an accepted country for amazon so your road is much tougher. Possibly, there are two ways:
- You can go to someone else in an accepted country to help you so maybe they can start a business in that country for you or set up your account for you.
- You can use a VPS of the country that is accepted on Amazon. VPS is like a VPN but more protected and secure than a VPN. For VPS, I recommend Digital Ocean.
Now you fully understand, what is the importance of an LLC for Amazon FBA and how can a person open an account on Amazon who lives in a country that is not approved for business on Amazon.
Let’s come to the main point of this guide, How to form an LLC for Amazon FBA. If you are a US citizen, so this is the most ideal circumstance you can be in everything becomes a lot easier but If you are not a U.S. citizen, you have to buy a Virtual Address in a state where you want to form an LLC.
How to Form an LLC For Amazon FBA
Basically, there are two ways to form an LLC for Amazon FBA:
- Form an LLC yourself
- Hire a Professional Formation Service
In this in-depth guide, I will tell you how to form an LLC for Amazon FBA yourself. For forming an LLC for Amazon FBA, you have to follow five steps:
Step 01: Name your LLC
The next step to form an LLC for Amazon FBA is to select the name of your LLC. The name of your LLC is essential in obtaining an EIN and opening a bank account in the US for your business.
There are a few guidelines to follow when you are about to name your company:
- The company name must include the term-limited liability company or the abbreviations LLC / L.L.C.
- Specific terminologies like FBI, State Department, etc. they can mistake your LLC for the government agency. The use of such terms is forbidden.
- The use of restricted words like University, Lawyer, and Banks requires additional documents and an authorized person.
Step 02: Hire a Registered Agent
The next step to form an LLC for Amazon FBA is to appoint a Registered Agent.
A Registered Agent is a person or a company who receives all official mail and processing services on behalf of your business. To keep your business in good standing, you must maintain a registered agent, which we do for $ 99 per year.
They are required by law and must maintain a physical address and maintain regular opening hours. Since you do not live in the United States, these are requirements that you cannot meet.
Micahgutu Formation is best for this task. For Registered Agent service, we charged $99 per year, which is comprehensively cheap and more valuable than others.
Step 03: File a Certificate of Formation
In the next step, you have to file a Certificate of Formation which is known as Articles of Organization with the Secretary of State.
The Certificate of Formation must include:
- Name of your LLC.
- Name and Address of the Registered Agent of your LLC.
- Signature of an Authorized Person.
Step 04: Create an Operating Agreement
An Operating Agreement is not necessary to form an LLC for Amazon FBA, but it’s highly advised to have one. An Operating Agreement is a document which is sets out the rights and responsibilities of the members and managers of an LLC. If you do not have an Operating Agreement, state LLC law will govern the operation of your LLC.
Step 05: Apply for an EIN
The next step to form an LLC for Amazon FBA is to apply for EIN. An EIN stands for Employer Identification Number. You will require an EIN to file and pay taxes and open a bank account.
Once the State has verified that your Articles of Incorporation (for LLCs) or Articles of Incorporation (for corporations) have been processed, you can apply for an EIN by completing Form SS-4 with the Internal Revenue Service (IRS).
The second option to form an LLC for Amazon FBA is to use an LLC formation service. There are many LLC formation services available online but I recommend our Micahguru Formation.
We have a separate package for each state which, includes Filing Fees, Registered Agent Fee $99/year, Expedited Filling Services, Annual Report Services, Operating Agreement Template, (EIN) Employer Identification Number, Banking Resolution Template, Work-Free Compliance with 100% Accuracy Guarantee.
In this guide, I will show you how to form an LLC for Amazon FBA Whether you live in the United States or you live in the UK you live in Canada or you live in a country that is not approved for business on Amazon.