Last updated: October 14, 2026
You’ve already decided to sell on Amazon FBA. The question now is a different one: is it worth forming an LLC for it, or can you keep going with the company you already have in your home country? The answer depends on how much you already sell and how serious your plan to grow in the United States is.
This guide focuses on what most articles about how to sell on Amazon FBA leave out: the legal and tax structure behind the operation. You’ll understand when an LLC pays off, how the EIN works, what Form 5472 is and why it carries a $25,000 penalty, and which state to register your company in.
Key Takeaways
Amazon doesn’t require an LLC to sell through FBA, but an LLC removes three practical roadblocks: a U.S. bank account, credibility with suppliers and asset protection. The real problem an LLC solves is separating business risk from your personal assets and simplifying how you get paid in dollars; it isn’t a stand-alone regulatory requirement. It makes sense for sellers who already sell consistently on Amazon.com, plan to use Brand Registry or restricted categories, or have already been blocked by a payment gateway. When choosing a state, compare the annual maintenance cost, not just the formation price. An ongoing compliance plan (with a deadline calendar and Form 5472 support) starts at $998/year, and FBA sellers, whose inventory is physically stored in the U.S., usually fit the Essential plan ($1,308/year), not the entry plan.
Table of Contents
- Do you need an LLC for Amazon FBA?
- LLC vs. selling with your home-country company: what changes
- LLC for Amazon FBA: overview
- Why an LLC solves real problems for FBA sellers
- Who really needs an LLC for Amazon FBA
- Which state to choose for your LLC
- EIN: your U.S. company’s tax ID
- Form 5472 and the $25,000 penalty
- ITIN: when you need it and when it can wait
- Bank account and receiving your Amazon payouts
- Step by step to form the LLC and sell on Amazon
- How to choose the right partner to form the LLC
- Everything you need to know, in one table
- Why form your LLC with Globalfy
- Frequently asked questions
How to Sell on Amazon FBA: The LLC at a Glance
| Item | Detail |
| Amazon’s requirement | No LLC required; accepts a foreign company via W-8BEN-E or a U.S. LLC |
| Recommended states | Wyoming, Delaware, Florida, Texas, New Mexico |
| Formation time | Wyoming: 1–7 days · Florida: 25–30 days |
| EIN | 2–3 days with the right process for non-residents, no SSN |
| Annual maintenance cost | Wyoming ~$62 · Delaware ~$400 · varies by state |
| Federal tax obligation | Form 5472 + pro-forma 1120 (foreign-owned single-member LLC) |
| Penalty for a late 5472 | $25,000 per form not filed on time |
| Documents required | Passport – no U.S. visa needed |
Do You Need an LLC for Amazon FBA?
No, technically not. Amazon lets a non-U.S. seller operate on Amazon.com with a company registered in their home country, by filling in the W-8BEN-E tax form in Seller Central. That’s the simplest route for someone testing the U.S. market with a few SKUs.
The problem shows up when the business grows. Without a U.S. entity, you rely on your foreign company for everything: getting paid in dollars, negotiating with suppliers, accessing restricted categories and, in many cases, getting approved by payment processors such as Stripe. That’s exactly the pattern that shows up in Globalfy’s sales calls: payment gateways blocking non-U.S. companies push sellers toward forming a U.S. LLC.
Amazon also treats accounts with a U.S. LLC with less friction in verification processes, especially for sellers pursuing Brand Registry or selling in categories that require prior approval (health, toys, battery-powered electronics).
LLC vs. Selling With Your Home-Country Company: What Changes
The table below sums up the real trade-off – without inflating the LLC side or hiding the extra cost.
| Factor | With your home-country company | With a U.S. LLC |
| Upfront cost | Zero (uses your existing structure) | From $588/year for company formation and address services (no compliance); $1,308/year on the plan with ongoing compliance, plus the state fee |
| USD bank account | Depends on an international account or an intermediary | Direct U.S. bank account (Mercury, Lili) |
| Tax form | W-8BEN-E | Its own EIN + Form 5472 |
| Asset risk | Personal assets exposed through the foreign company | Liability limited to the LLC |
| Restricted categories / Brand Registry | More friction in approval | More direct process |
| Tax withholding | Standard rate, with no treaty benefit applied | Pass-through structure, with treaty benefits where your country has a treaty and the setup is right |
Neither option is “wrong”. An LLC pays off when sales volume justifies the fixed compliance cost, usually from the point where the seller starts reinvesting profit and scaling ads consistently.
Why an LLC Solves Real Problems for FBA Sellers
The common mistake is to think of the LLC as a stand-alone Amazon requirement. In practice, it solves three problems that show up together for anyone selling in dollars while living outside the U.S.
Bank account. Amazon requires a bank account that can receive dollars. Without a U.S. entity, sellers depend on international accounts with worse exchange rates or on intermediaries. An LLC with an EIN opens a direct path to banks such as Mercury and Lili, with applications possible even before the EIN is issued.
Risk separation. A product complaint, a trademark dispute or a liability lawsuit in the U.S. is brought against the LLC, not against your personal assets back home. That’s not a technical detail: it’s the difference between losing a product’s inventory and losing your house.
Operational credibility. U.S. suppliers, carriers and even Amazon itself deal more smoothly with a company formally registered in the U.S. than with a foreign individual. That translates into faster category approvals and stronger negotiating power with suppliers.
Who Really Needs an LLC for Amazon FBA
The solo seller in the scaling phase
You’ve validated the product, you’re reinvesting in ads and you project recurring revenue. This is the profile that benefits most from a single-member LLC, treated by the IRS as a “disregarded” entity for tax purposes, which simplifies filing.
Sellers who’ve been blocked by a payment gateway
Stripe and PayPal restrictions on non-U.S. entities are, according to Globalfy’s sales history, one of the biggest triggers for LLC sign-ups. If it’s already happened to you, an LLC fixes the problem at the root.
Sellers aiming for Brand Registry or restricted categories
A registered private-label brand, health products, toys or battery-powered electronics require more robust documentation. An LLC with a U.S. tax ID (EIN) and a matching bank account speeds up that approval.
Sellers who already make enough to justify dedicated accounting
Once your sales volume creates sales tax nexus in multiple states, it makes sense to move to a plan with monthly bookkeeping and quarterly tax support, not just basic formation.
One point that often goes unnoticed: by definition, anyone selling through FBA has inventory physically stored in the U.S. That counts as a U.S. presence for plan eligibility with providers such as Globalfy – which means the entry plan designed for a 100% remote operation with no physical presence usually doesn’t apply. FBA sellers typically need the next tier, with broader federal filings.
Which State to Choose for Your LLC
Wyoming, Delaware, Florida, Texas and New Mexico are the states usually recommended for non-residents. For Amazon sellers, the right criterion isn’t “which state is most famous”, but how much it costs to keep the company active every year – since FBA doesn’t require physical presence in any specific state.
| State | Formation cost | Annual fee | Note for FBA sellers |
| Wyoming | $103.75 | ~$62.25 | Chosen by ~40% of Globalfy clients; low recurring cost |
| New Mexico | $50 | No annual report for LLCs | Lowest formation cost of the group |
| Florida | $125 | Annual report required | Good option if you already have operations or logistics in Florida |
| Texas | $309 | Franchise Tax (exempt up to a revenue threshold) | Relevant physical presence for those negotiating locally |
| Delaware | $110 | ~$400 | Standard for those planning to raise investment; not the cheapest for pure FBA |
If your only goal is to sell on Amazon FBA with no physical operations in the U.S., Wyoming usually wins precisely because of its maintenance cost, not because it’s “the best state” in a generic sense.
EIN: Your U.S. Company’s Tax ID
The EIN (Employer Identification Number) is the tax identification number issued by the IRS. It’s required to open a bank account, register as a professional seller on Amazon and meet the LLC’s tax obligations.
You don’t need an SSN or ITIN to get an EIN. The process for non-residents follows a specific path – by fax or mail, since the IRS online tool rejects applicants without an SSN or ITIN. Done correctly, it takes 2 to 3 business days; done without that know-how, it can drag on for weeks.
Amazon doesn’t automatically suspend an account for lacking an EIN, as long as the correct tax form (W-8) is filled in. But without an EIN you can’t open the bank account Amazon itself requires for payouts – so the bottleneck shows up either way.
Form 5472 and the $25,000 Penalty
This is the point non-resident sellers most often overlook, and the most expensive one to get wrong. A foreign-owned single-member LLC must file Form 5472 every year, together with a pro-forma Form 1120, with the IRS, even if the company owes no federal income tax.
The penalty for not filing Form 5472 on time is $25,000, applied even when no tax is due. It isn’t proportional to profit: it’s fixed, and it applies simply for not having filed the document. Many sellers only discover this obligation after receiving an IRS notice, by which point the deadline has already passed.
Beyond this federal duty, your country of residence may have its own rules for declaring a stake in a foreign company and reporting the income it generates, depending on how money flows between the two sides. Check this with a tax adviser in your country.
ITIN: When You Need It and When It Can Wait
The ITIN (Individual Taxpayer Identification Number) is different from the EIN: the EIN identifies the company, the ITIN identifies you as an individual to the IRS. If your LLC only files Form 5472 and you don’t need to file a personal return (Form 1040-NR), the ITIN can wait.
It becomes necessary when you start reporting personal income in the U.S., want to avoid the standard 30% withholding on U.S.-source payments or need to prove your tax identity to claim benefits under a tax treaty. Processing Form W-7 (the ITIN application) takes 7 to 11 weeks depending on the time of year; outside tax season (May to December) it tends to be faster.
Bank Account and Receiving Your Amazon Payouts
Amazon requires a U.S. bank account to deposit sales payouts. With the LLC and EIN in hand, you can open an account with partners such as Mercury, Lili and Revolut – all with processes designed for non-residents, and the application can start even before the EIN is issued, although final approval depends on the financial institution’s own review.
Worth stressing: no provider, including Globalfy, guarantees bank approval. The bank decides according to its own compliance criteria.
Step by Step to Form the LLC and Sell on Amazon
- Choose the state based on the annual maintenance cost and your operating profile (see the previous section).
- Register the LLC – Wyoming takes 1 to 7 days; Florida between 25 and 30 days.
- Apply for the EIN through the right process for non-residents (2–3 days when done properly).
- Open the bank account with Mercury or Lili, using the LLC and EIN.
- Sign up for Amazon Seller Central as a Professional account, linking your EIN and bank details.
- Set up annual compliance – a deadline calendar for the state Annual Report/Franchise Tax and the federal Form 5472.
- Set up bookkeeping from the first month so you don’t have to rebuild records at filing time.
How to Choose the Right Partner to Form the LLC
Not every formation company covers the full cycle. When evaluating options, check these points – they’re exactly the criteria Globalfy was built to win on:
- Does the plan include ongoing compliance, or just formation? Many providers form the LLC and disappear – Form 5472 and the Annual Report are left to you.
- Is there human support in your language? It reduces the risk of mistakes on tax forms that are already complex in English.
- Is the provider transparent about separate state costs? State fees, ITIN and multi-member filings shouldn’t be surprises after you sign up.
- Does the provider flag your home-country obligations (such as declaring your stake and reporting income), even if it isn’t the one handling that side?
- Does the total annual compliance cost make sense against the risk of a $25,000 penalty for a missed 5472?
Everything You Need to Know About an LLC for Amazon FBA
| Category | Summary |
| Amazon’s requirement | Not mandatory; a foreign company + W-8BEN-E is also accepted |
| When it pays off | Recurring revenue, gateway blocks, Brand Registry, restricted categories |
| Cheapest state to maintain | Wyoming (~$62/year) |
| Company tax ID | EIN – obtained without an SSN in 2–3 days with the right process |
| Biggest compliance risk | Form 5472 not filed: $25,000 penalty |
| Personal tax ID | ITIN – needed only when reporting personal income (1040-NR) |
| Bank account | Mercury or Lili, approval subject to the bank |
| Home-country obligations | Declaring your stake and reporting the income, per your country’s rules |
Why Form Your LLC With Globalfy
Globalfy solves the problem most LLC formation services miss: forming the company is easy, staying compliant over the next twelve months is the hard part. Formation, EIN, U.S. address, registered agent, compliance calendar and banking assistance all live in a single dashboard, depending on the plan – with a dedicated account executive, not a ticket queue.
That’s decisive for anyone who will file Form 5472 every year under the risk of a $25,000 penalty: Globalfy’s compliance calendar warns you before the deadline, and support runs in English, Portuguese and Spanish. More than 10,000 founders served in more than 100 countries, with a 4.9 out of 5 rating on Trustpilot from 700+ reviews.
The plan’s annual cost also goes further than it looks at first: Globalfy plans include access to more than $200,000 in partner credits – Stripe, Google Ads, OpenAI and others. Combining two or three of these credits can cover a good part of the annual plan, which changes the question from “how much does it cost to maintain the LLC” to “how much does it actually cost once the credits are used”.
If you already take your Amazon business seriously and don’t want to discover the 5472 obligation through an IRS notice, it’s worth talking to a specialist before forming the LLC on your own.
Frequently Asked Questions About an LLC for Amazon FBA
Does Amazon require an LLC to sell through FBA?
No, Amazon doesn’t require an LLC to sell through FBA. A non-U.S. seller can operate with a company registered in their home country, by filling in the W-8BEN-E form in Seller Central. An LLC becomes worthwhile when sales volume grows, when a payment gateway blocks you or when you pursue restricted categories and Brand Registry.
How long does it take to form an LLC to sell on Amazon?
The timeline depends on the state you choose: Wyoming takes 1 to 7 days, while Florida takes between 25 and 30 days. The EIN, through the right process for non-residents, comes through in 2 to 3 business days. Counting formation, EIN and bank account, a seller can be operational in about two to three weeks.
What is the penalty for not filing Form 5472?
The penalty for not filing Form 5472 on time is $25,000, applied even when the LLC owes no federal income tax. The form is mandatory for every foreign-owned single-member LLC, together with a pro-forma Form 1120. It’s the most expensive compliance obligation to ignore for a non-resident seller with a U.S. LLC.
Do I need a U.S. visa to form the LLC as a non-resident?
No, no U.S. visa is needed to form an LLC. The only personal document required is a passport. You can form, manage and sell through your U.S. LLC without ever leaving your country.
How does double taxation work between the U.S. and my home country when selling on Amazon?
A foreign-owned single-member LLC is treated by the IRS as a pass-through entity, which avoids corporate-level taxation in the U.S. In your country of residence, the income from the U.S. operation usually has to be reported under local rules, depending on how money flows between the two sides. The right structure and whether your country has a tax treaty with the U.S. determine whether there’s effective double taxation – which is why specialist advice on both sides is worthwhile.
What is the best state to form an LLC for Amazon FBA?
There’s no single “best state”: for pure FBA selling, with no physical operations in the U.S., Wyoming is usually the cheapest to maintain, with an annual fee of about $62.25. About 40% of Globalfy clients choose Wyoming for that reason. Delaware and Texas make more sense for those planning to raise investment or who already have a local physical presence.
Can I sell on Amazon without forming a company in the United States?
Yes, you can sell on Amazon USA using a company registered in your home country and the W-8BEN-E form, without forming a U.S. company. That route works well for testing the market with a few products, but it creates more friction with bank accounts, restricted categories and supplier negotiations as the business grows.
What if I formed my LLC on my own and don’t know if I’m compliant?
That’s common among sellers who formed their LLC through a low-cost formation service with no ongoing support. The first step is to check whether the previous year’s Form 5472 was filed and whether the state Annual Report is up to date – the two points with the highest penalty risk. A specialist can review your situation and move your compliance onto a managed calendar before the next deadline.