Are you wondering if you need an LLC to sell on Amazon? In this article, we’ll share all the details so you can figure out if getting an LLC for your Amazon business is a top requirement. We’ll also provide details on how to choose the best service for helping you set up an LLC business.
49% of Americans start their product search on Amazon. Therefore, the potential to make money by selling on Amazon is massive because the buying power is unmatched. However, before you become a successful seller, you’ll need to determine if Amazon requires you to form an LLC.
Do You Need An LLC To Sell On Amazon?
No, you don’t need an LLC to sell on Amazon. In fact, the low barrier to entry is one of the biggest advantages of starting a business as an Amazon seller. Therefore, you can open up an Amazon Seller Central account there’s no requirement to produce evidence of having a business.
However, the signup process does have an optional section where you can share the details of your business, including if you have an LLC already set up. As you’ll see in this article, there are many advantages to ensuring that your Amazon business has an LLC set up.
Advantages Of Registering Your Business As An LLC
Now let’s explore the advantages of getting an LLC for your Amazon business. This will help you approach why taking the step is worth your time and money.
Liability Protection
An LLC gives you the ability to receive liability protection for damages. For example, if a customer wants to pursue legal action for a faulty product, it’s the LLC that is liable for damages and not you personally.
This protects Amazon sellers because your personal bank account will not take a massive hit and potentially render you bankrupt. Therefore, you can work on your Amazon business without worrying about the potential of legal fees grinding everything to a halt.
Receive A Bank Loan
Once you set up an LLC, you’ll have a higher chance of successfully applying for a bank loan. Therefore, Amazon sellers can use the newly acquired funds to invest in buying more products. Hence, by getting an LLC, you can scale your business faster at the start.
However, don’t ask for a bank loan until you have proof of concept. That’s because you need to prove to yourself and the bank, that the business is profitable. Once you have a recipe for success, then getting a loan helps take your Amazon FBA business to the next level.
Manage Funds
Do you want to run your Amazon business with partners? Then setting up an LLC helps ensure that you can manage funds effectively and transparently. Each business partner will have access to the LLC and monitor all transactions. Hence, you don’t need to share information since everything is transparently available on the LLC books.
Also, you can use the LLC to pay suppliers and receive funds from Amazon. This ensures that your personal accounts won’t be scrutinized with regard to taxes. In fact, with an LLC, you can save money by potentially paying fewer taxes. However, you should consult a tax account to verify this for your specific use case.
More Authority
With an LLC under your belt, you’ll have more authority when selling products on Amazon’s digital stores. Customers who notice your business is registered as an LLC may buy your products compared to a competitor that hasn’t taken the step.
Furthermore, when doing business with suppliers, having an LLC may lead to better deals. That’s because suppliers are looking for serious business partners, and LLC formation is a step in the right direction.
How To Choose The Best Service To Form An LLC
There are many services that will help you set up an LLC for your Amazon business. However, it’s important to choose the right one. In this section of the article, we’ll share the top factors of consideration when choosing an LLC registration service you can trust.
- Price: compare the prices of the services you come across, since there are enough options to find a good deal. The more money you save, the more you can spend on your Amazon business. Here at Business Anywhere we provide one of the more competitive price points on the market.
- Fast process: you don’t want an LLC registration process that takes all day to complete. Hence, look for a service that provides a quick registration process that you can finish in a single sitting. We have optimized the business registration steps so you can complete the process fast.
- User interface: ideally, the user interface will be fast and help you along the way. This ensures you don’t need to contact customer support to understand how to register an LLC.
- Customer reviews: it’s a good idea to look at what other customers say about a company registration service. You may spot red flags or find one that has glowing reviews. Business Anywhere has enjoyed excellent reviews for many years, so you can trust our service with your business registration needs.
If you don’t have time to research multiple LLC formation services, then choose Business Anywhere for business registration services.
Selling On Amazon – Do You Really Need An LLC?
To conclude, you aren’t required to have an LLC, but it’s a big advantage to have one. Amazon is becoming an increasingly competitive e-commerce platform, so you need every edge you can get. Therefore, the investment in getting an LLC will pay off in the form of additional business growth.
Also, anyone who is running an Amazon business is eligible to register for an LLC. This includes those who are living all around the world. Therefore, you have no reason to avoid registering an LLC and multiple reasons to take the plunge.
Want to avoid spending a lot of time looking for a good quality business registration service? Then you can use our service here at Business Anywhere. We can register your Amazon business as an LLC without taking up much of your time.
