US LLC for Online Sellers: Amazon, Shopify and Beyond
Many sellers who live outside the US consider a US LLC to sell on Amazon or a Shopify store, take US card payments and sell to American customers. It can help, but it does not remove tax, shipping or compliance work, and it does not decide what a marketplace or bank will accept. This guide sets out what the LLC does and does not do. It is general information, not legal or tax advice.
Start Formation in United States →Why sellers form a US LLC
- Marketplaces and payment providers often ask for a registered business, and a US company can be easier to present to a US-facing platform
- It separates your personal assets from the business if there is a dispute or a product claim
- It gives you a US business identity and an EIN, which several US services ask for
- It keeps business income, expenses and bank activity in one legal entity
What a marketplace usually asks for
Marketplaces verify the seller before they let you list. They typically want business documents, an identity document for the owner, proof of address, a bank account and a payment method. The exact list changes, and each platform decides for itself whether to approve you.
A US LLC helps you present these documents in a familiar form. It does not make approval certain.
Sales tax
In the United States, sales tax is set by each state, and a state can require a seller to collect it once sales into that state pass its threshold, even if the seller has no office there. Many marketplaces collect and remit sales tax on the seller's behalf for sales made through the marketplace, but a store you run yourself, such as a Shopify site, usually leaves this with you.
Exemptions and thresholds differ by state and by product, so check them or ask a tax adviser.
Income tax and yearly filings
A single-member LLC owned by a non-US person is generally disregarded for federal purposes, and it usually files Form 5472 with a pro forma Form 1120 each year. Whether the business owes US income tax depends on where its income comes from and whether it carries on business in the US, and your home country may tax the profits as well.
The LLC also has state filings, such as an annual report or fee, depending on the state.
Payments and banking
Payment providers and banks each decide whether to open an account for a company, and they look at the owner, the business model and the country. Some accept non-resident owners and some do not.
No formation service can promise an account, so plan how you will be paid before you rely on it.
What the LLC does not solve
- Import duties, customs and shipping rules for the goods you sell
- Product liability and insurance, which you still need to consider
- Consumer-protection and marketplace rules in each country you sell to
- VAT or similar taxes when you sell to customers in other countries
- Your own country's tax rules on the profit you take
Choosing the state
For an online seller run from abroad, the choice is usually between Wyoming and Delaware, weighed on recurring cost, filings and how you will raise money. Our comparison guide sets out the trade-offs.
With CORPYO
CORPYO forms US LLCs remotely in Wyoming and Delaware, and can obtain the EIN and act as the registered agent. Marketplace approval, banking and tax registrations are separate decisions, and CORPYO does not promise them. This page is general information, not legal or tax advice.
Steps to set up a US LLC for online selling
- 1Decide whether a US company fits where your customers and platforms are
- 2Choose the state and form the LLC
- 3Apply for the EIN
- 4Set up a separate business bank or payment account, where a provider accepts you
- 5Register on the marketplace and complete its verification
- 6Check state sales tax and diarise the yearly filings
Frequently Asked Questions
Do I need a US LLC to sell on Amazon?
Not always. Marketplaces have their own rules, and some accept sellers from many countries. A US LLC can help when a US-facing platform wants a US business.
Will a US LLC get my seller account approved?
No. Each marketplace decides for itself. The LLC gives you documents to present, not an approval.
Do I have to collect sales tax?
It depends on the state and where the sale is made. Marketplaces often collect for sales made through them, while your own store usually leaves it with you.
Does the LLC pay US income tax?
It depends on the source of its income and whether it carries on business in the US. It still usually files Form 5472 with a pro forma Form 1120.
Can I get a US bank account or Stripe account?
You can apply. Each provider decides, and no formation service can promise one.
Does the LLC handle customs and shipping rules?
No. Import duties, customs and shipping remain your responsibility.
Related guides
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