There are many different benefits to selling on Amazon, from the extra income to not needing any special certifications to run your own business. And being able to do all of it from your own home? Even better.
One of the biggest questions people ask is if you need a reseller’s permit to sell on Amazon. This mainly comes down to where you live and your sales. We’re going to take a closer look at what you need to get started as a seller on Amazon.
Do You Need a Resellers Permit to Sell on Amazon?
When it comes to selling on Amazon, their requirements are surprisingly minimal. If you’ve ever considered getting into Amazon selling or reselling, you’ve probably wondered “Do I need a reseller’s permit to sell on Amazon?” As far as the guidelines Amazon has in place, they do not require a resellers permit or a business license, but there is more in play than just their requirements.
Whether or not you need a license to sell online is determined by where you live. Some states and cities require either a resellers license or a business license to sell online, even if you are a sole proprietor and you don’t have an EIN.
Benefits of Setting up an LLC as an Amazon Seller
Setting up an LLC to sell on Amazon is not a requirement, but it can make your life a lot easier in a few ways.
When you run a business as a sole proprietorship, there is no legal separation between you and your business, making your business debts your debts. This can put your assets at risk if you face any accusations of negligence. Establishing an LLC makes your business a “separate legal entity”, fully separating your personal and business assets.
If you want to build a reputation and impress potential customers, adding an LLC to your business can show how serious you are about your business. It forms a layer of trust that you won’t get if you’re a brand-new seller without a pre-established customer base.
Since one of the options for managing an LLC is being managed by the members of the corporation, this allows all of the members to share the responsibility of daily operations, including making decisions. Another option is being managed by designated managers, who can either be members of the LLC or outside individuals hired to manage it. This is ideal if the owners of the LLC want to hire someone to run their business who has more operational knowledge.
More Options at Tax Time
If you’re operating your business as an LLC, instead of a sole proprietorship, you will probably be able to leverage certain tax breaks and deductions that are not able to be claimed by individuals or other unincorporated businesses. If you keep your business and personal finances separate, you can also reduce the chances of being audited, which is where the IRS challenges your tax filing.
If You’re A Reseller & Need Expert Setup On Amazon
If you have a business that you want to get started reselling on Amazon, one of the first things, and best things, that you should do is work with a powerful Amazon management company. Not only can The Amazon Junkies help you find drop shippers that need your product, but we can even help you with the paperwork and filings needed to form your LLC. Reach out today and tell us what your goals are for your business, and we’ll tell you how we can help you meet them.