Amazon.com, Inc. is a C corporation listed on NASDAQ. It is originally an online bookseller that now focuses on eCommerce, cloud computing, digital streaming, and artificial intelligence services. The company is named after the Amazon River and is headquartered in Seattle, Washington.
Amazon’s Business Structure and Services
Subsidiaries and Services
Amazon has child companies like Amazon Services LLC, Amazon Advertising LLC, Amazon Web Services (AWS), and Audible. Amazon Services LLC offers services to third-party Amazon sellers including storage, shipping, and order fulfillment. The LLC structure allows Amazon to optimize taxes.
Tax Optimization and Liability
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.
Entrepreneurial Opportunities with Amazon
Amazon is not a franchise but offers opportunities for entrepreneurs to operate their own Amazon delivery service. It allows testing small online sales as a sole proprietorship but forming an LLC better protects established sellers.