Forming an LLC as an FBA business is essentially the same as forming a traditional LLC. But there are some unique aspects of e-commerce you might consider:
What is an FBA LLC?
An FBA LLC is a limited liability company formed specifically for online sales via Fulfillment by Amazon (FBA). FBA is a program that allows business owners to sell their products online and distribute them to customers using Amazon’s storage and shipping services.
How do I form an FBA LLC?
You can form an FBA LLC the same way you’d create a traditional LLC. Once you know what state you’d like to register in, you’ll have to file the appropriate paperwork (like articles of organization) and pay state fees. Learn more about forming an LLC on Northwest’s Start an LLC page.
Do I have to form my FBA LLC in my home state?
No. You can form an LLC in any state, which can be helpful when it comes to lowering start-up costs and annual fees. That said, if you run your business out of your home, you’ll still have to pay taxes in your home state, which might mean double taxation. It’s a good idea to check-in with a business attorney or CPA to figure out what might work best for your business.
Do I need an EIN for my FBA LLC?
Yes. Amazon requires a Taxpayer Identification Number (TIN) in order to sell products via FBA. While this can either be a Social Security Number (SSN) or an Employer Identification Number (EIN), it’s bad practice to use your SSN for your limited liability company—so EIN it is.