Is Amazon a Sole Proprietorship?

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Overview of Amazon

  • Originally an online bookseller, Amazon now focuses on ecommerce, cloud computing, and other services.
  • Corporation listed on NASDAQ.
  • Headquarters in Seattle, Washington.
  • Child companies like Amazon Services LLC, Amazon Advertising LLC, Amazon Web Services, and Audible.

Business Structure

  • Amazon allows testing small online sales as a sole proprietorship, but forming an LLC better protects established sellers.
  • As a corporation, Amazon limits owners’ liability but can be expensive to run.
  • By owning LLC subsidiaries, Amazon reduces income tax and may avoid some sales tax.

Amazon Services

  • Offered by Amazon Services LLC to third-party Amazon sellers.
  • Services include storage, shipping, and order fulfillment to optimize taxes.

Amazon Web Services (AWS)

  • Provides on-demand cloud computing platforms and APIs.
  • Designed for individuals, companies, and governments to quickly build, deploy, and manage applications and services in the cloud.

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