Ready to be an Amazon Seller?

To sell in the U.S. on Amazon.com, you will need to provide the following documents:
- A valid credit card
- Phone number
- Tax ID information
- Utility bill from theU.S.
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With regard to providing Tax ID information, you have two options: (1) provide a Tax ID associated with an individual (social security number (SSN) or taxpayer identification number (ITIN); or (2) provide a Tax ID associated with a company (employer identification number (EIN)). 

The recommended and standard option to open a store on Amazom.com is by setting up a company. In the U.S. a company set up as either a corporation or limited liability company (LLC) offers the owners protections against liabilities that the company may incur. Simply put, a corporation or LLC acts as a liability shield between third parties and the owner’s assets.  

If you decide to use your personal tax ID instead, you will be required to go through an online step-by-step interview, that will determine whether you will need to complete a W-9 form (as a U.S. taxpayer) or a W-8BEN form (as a non-U.S. taxpayer).
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Although using the personal U.S. tax ID is a relatively simple and possible solution to open a store on Amazon, a few things need to be considered here:
- Using a personal tax ID will reveal all the information about the person.
- The person registering the tax ID is responsible for all activity on Amazon.com, and any liability that arises therefrom, including, but not limited to, tax liability to the Internal Revenue Service (IRS) or liability to third parties (e.g., injury sustained from use of products sold on the platform).

Benefits of incorporating in Delaware

Here are some reasons why incorporating in Delaware is beneficial:

3.1 Tax flexibility
Delaware has some of the most business-friendly tax laws. Businesses formed in Delaware without operation don’t need to pay state income tax (only franchise tax).
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3.2 Modern corporate law
Delaware has a special court to rule on corporate law disputes without juries. Legal disputes are addressed promptly and expertly by judges who specialize in corporate law.

3.3 Simple and quick to set up
Delaware doesn’t require a business address, and setting up only takes about 2-3 days. Moreover, you don’t have to disclose owners’ names in the LLCs, or directors or shareholders in the C Corporation.

There are a few things you need to prepare first:
●   Business Name
●   Type of company: LLC or C Corporation
●   Description of your business activity
●   Members details for LLC or Shareholder structure for C Corporation, including the name, passport copy, and email address
●   Utility bill copy
●   Percentage of shares and amount of capital money
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Incorporating as an LLC may require a Registered Agent, and Greenhouse can help you with this.

Once all the requirements are completed, the incorporation may take 2-3 days (assuming you have chosen Delaware). However, for foreign persons, there will be additional requirements (e.g., obtaining a EIN for the company). To open a bank account for the company, it must obtain an EIN.

- LLC Articles of Organization (Business registration)
- Company registration filing service
- Operating agreement for the company (including banking resolutions)
- Registered agent, its address and details
- Employer Identification Number (EIN)

- Open a bank account. For non-U. S citizens, an account can be set up remotely. The fee for this starts from $1200, including setting up an account and corporate seal.

- Aside from the bank account opening, there will be reports that need to be filed monthly and/or quarterly. 

- Annual Delaware Franchise Tax. One of the benefits of incorporating as an LLC in Delaware is that there’s no annual report required. However, there is a mandatory tax (franchise tax) of about $300 that has to be paid annually before June 1. There’s a $200 late fee if you miss the deadline with interest of 1,5% in tax and late payment. 

- Annual Registered Agent fees are $150.

It may take you up to 60 days to start selling on your Amazon U.S. store.