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                              Features of registering a company in the USA for trading on Amazon

                              by Alex James
                              April 13, 2022
                              Reading Time: 6 mins read
                              0
                              Features of registering a company in the USA for trading on Amazon
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                              This article is for those who are still planning to create a business on amazon, or are already trading. How to start making money on amazon, do you need to register a company in the US to work on the platform and how to do it – read on.

                              How to become a seller on Amazon?

                              Registering on the Sell. Amazon service is the first step for those who want to start an Amazon business. The usual procedure awaits you: enter your email (or phone number) and password. Next, follow 8 steps to open your official business on amazon.com:

                              1. Select an account status. By default, a Professional account is offered (further instructions about it). Those wishing to register an Individual account must go to the Pricing tab and select the appropriate tariff.
                              Individual account Professional account
                              Rate 0.99$/sale+commission $39.99/month+commission
                              Who suits Up to 40 sales per month;
                              Unformed assortment;
                              Sales without ads.
                              From 40 sales per month;
                              Sales with advertising;
                              Advanced sales tools (API, reports);
                              Assortment from limited categories.
                              1. Enter Legal name: your full name or company name.
                              2. Specify the billing address — the address for payment documents (more on this later).
                              3. Connect a payment card to the service.
                              4. Get verified.
                              5. Take a survey about the format of tax reports.
                              6. Sign the documents specified by the service with an electronic signature or by requesting the originals to a physical address.
                              7. Complete the product listing.

                              If you have a Private Label (U.S.-registered trademark), that must also be recorded. Registration is over, you can start trading!

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                              Amazon registration documents

                              For an Individual account, supporting documents are not required for amazon seller accounting. But in the Professional account, the marketplace imposes a number of requirements on documents . In addition to reliability, they must be in color, clear, in high resolution and in full. It is unacceptable to send a photo of documents taken by a gadget to the service.

                              Documents are accepted in jpeg, png, pdf, tif, jpg formats from 10 mb in size. You can not use special characters in the names – &, #, $.

                              Russian and Ukrainian languages ​​are not suitable for registering on Amazon. Translate them into a language suitable for the service (English, French, Chinese, Arabic, Italian, German, Japanese, Portuguese, Turkish, Spanish) and notarize.

                              To register a seller on Amazon, you need a bank statement and ID. Passport, id-card, driver’s license. Send double-sided documents as a single file.

                              The list of additional documents may differ in different countries:

                              • Supporting documents for business;
                              • Utility bills;
                              • Business licenses;
                              • Bank statements.

                              how to fill in address on amazon

                              Several lines are responsible for the address in the registration form at once (enter all data in Latin):

                              Address: house number, street name and apartment.

                              Address line 2: an additional field in case the address does not fit in the first line.

                              City/Town:

                              State/Province/Region:

                              Postal/ZIP-code: postal code.

                              Country: country UK –

                              If you are a dropshipper, you will need a US Amazon address. In the US market, there are companies that deliver goods only within the country, or deliver unreasonably expensive. In such cases, intermediary companies will help you get an American address where the goods you ordered will arrive, and from there you can take out parcels outside the United States in a way convenient for you.

                              How to sell on Amazon from UK

                              Trading on Amazon from UK takes place according to the standard scheme: product selection, niche analysis, registration on the marketplace. For Ukrainian traders, it is important to determine the method of delivery of goods to Amazon warehouses and the method of withdrawing funds.

                              Delivery is organized by sterlinxglobal or logistics companies. The latter are ready to help with the paperwork.

                              It is most convenient to withdraw money to UK through the Payoneer payment system, with which you can receive funds to an account in a Ukrainian bank. The minimum withdrawal amount is $200, the withdrawal fee is 2%. Money is credited to the account in foreign currency, but they can be withdrawn only in hryvnia.

                              Why register a company in the US to trade on Amazon?

                              It is possible to trade on Amazon as an individual, but practice shows that users without a company face a number of difficulties even at the registration stage:

                              • Amazon’s unofficial policy calls into question the accounts of individuals from Eastern Europe: the administration of the service rejects identity documents, requires them to be sent again, requests a utility bill (confirmation of residence). Users complain on social networks about problems with registration:

                              Having a company in the US speeds up the registration process on the platform, and Amazon accepts verification documents without comment.

                              • The control. After registration, in the course of work, Amazon sometimes requires individuals to re-verify. The marketplace controls the place of residence by periodically requesting a utility bill. If the administration of the service has suspicions, they require additional documents. Users with a company in the US are not bothered by Amazon with unnecessary requests.
                              • From September 1, the service introduces mandatory seller liability insurance : users get the opportunity to complain about the seller. By creating an Amazon business as an individual, you take full responsibility for possible problems, risking personal property. By having a company in the US, you will be liable with the property of the company, and personal assets will remain intact.
                              • legitimacy of income. Sellers who make a lot of profits from trading on Amazon attract close attention from the tax authorities. And at the same time, they do not always have documents confirming the source of income: tax returns and sales contracts. These documents are required when buying real estate, cars and other assets. A company in the USA will help plan the tax burden on the business and the business owner, observing all the legal requirements of Ukraine, America and other countries.
                              • Additional expenses. Individuals pay more for advertising services. This is due to the tax on Google: it is levied on resident sellers in Ukraine. US companies do not pay it.
                              • The tax burden. Trading on the marketplace without paying taxes will sooner or later lead the seller to the dock. Therefore, before you create a business on Amazon, think about what tax system to adjust it to. Individuals are required to pay income tax. But having a company registered in the US, you pay income tax. And the tax rate depends on the state in which you open a company.

                              What is required to register a company in the USA

                              List of required documents:

                              • Copies of civil and foreign. passports of directors and shareholders of the company, corporate secretaries;
                              • Data on the distribution of shares and shares in the company;
                              • Documents confirming the address of residence (utility bills);
                              • Variants of company names indicating the form of ownership;
                              • Company activities.

                              Opening a corporate account

                              A corporate bank account in the United States is a pass to the international trading system in dollars. It allows you to conduct dollar transactions with most countries of the world. You can open a corporate account only for a US company or a US branch of a foreign company.

                              General term and cost of registration

                              It is difficult to determine the timing and how much it will cost to register a company in the United States and get Amazon In UK. It depends on the state and whether you do everything yourself or use the services of intermediaries. The first option is cheaper, but takes longer. And there is a risk that savings at the time of registration will lead to additional costs already at the first submission of reports to the tax office. Lawyers will save time and do everything on their own, but you will have to pay extra for the comfort.

                              By itself, registering a company in the United States is fast: in Wyoming – in 5 working days, in Florida – up to 10 days, and in Delaware in general in 1 day. Remember that the procedure takes place at 2 levels: the state level and the US tax. It takes much longer to obtain EIN and ITIN tax numbers.

                              EIN is an employer’s individual tax number. Without it, the company will not be able to function, so draw it up immediately after registering a business. It takes 3-4 weeks to receive an EIN.

                              ITIN is a tax identification number for non-US residents. Required to open a corporate bank account. The term of receipt is from six months.

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