Selling on Amazon Without an LLC
No LLC is needed to sell on Amazon. You can create a seller account and start selling without one. However, an LLC offers advantages such as asset protection and providing a professional image.
Advantages of an LLC for Amazon Sellers
With an LLC, problems with your Amazon business wouldn’t affect you personally. An LLC separates personal and business assets, reducing confusion during audits or legal issues. This structure connects business debts and liabilities to the company instead of the individual, protecting entrepreneurs personally from potential lawsuits, debts, and liabilities. Amazon buyers prefer purchasing from established and professional businesses, and forming an LLC shows you take your business seriously.
Establishing an LLC Steps
To establish an LLC, follow these steps:
- Choose a name.
- Assign a designated agent.
- Draft the operating agreement and articles of organization.
- Get an EIN.
- Open a business bank account.
Deciding if an LLC is Right for Your Amazon FBA Business
Should I open an LLC for Amazon FBA?
You can sell on Amazon without an LLC, but if you want to protect your personal assets, reduce tax liabilities, and establish a professional image, forming an LLC might be beneficial. If you’re just trying out being an Amazon FBA seller as a hobby, you might start as a sole proprietor and then transition to an LLC as your business grows. For those committed to making their Amazon business successful long-term, an LLC could be the best option to keep your venture protected.