Selling on Amazon with your US LLC: guide for international sellers

600 billion dollars of gross sales (2024 data). A US LLC gives you full access to the Amazon Seller ecosystem. Here is everything about FBA, FBM, Brand Registry and payment routing.

Amazon US moved more than 600 billion dollars in gross sales in its latest fiscal year, and 100% of those payouts run through a provider that asks for an EIN and a US bank account before sending you a single dollar.

Amazon is the world's largest marketplace. A US LLC can give an international seller a cleaner operating base when the account, tax profile, banking file and documentation all tell the same story.

Why a US LLC for Amazon?

Selling on Amazon US (amazon.com) as an individual or foreign company creates unnecessary complications. With a US LLC:

Full platform access:

• Amazon Seller Central account without country restrictions
• Access to all Amazon advertising tools (Sponsored Products, Brands, Display)
• Eligibility for Amazon Lending
• Access to FBA (Fulfillment by Amazon) without issues
• Brand Registry available for trademark holders

Payment simplicity:

• Amazon pays directly to your Mercury account in USD
• No currency conversion at Amazon's unfavorable rates
• Payments every 14 days once account is established

Tax and compliance:

• Clear business structure for sales tax collection
• Professional invoicing for B2B sales
• Better treatment for Amazon's verification processes

Getting started: the process

1. Form your LLC (handled by Exentax)

2. Open Mercury account (coordinated by Exentax)

3. Create Amazon Seller Central account:

• Individual plan ($0/month, $0.99/item fee) or Professional plan ($39.99/month, no per-item fee)
• Professional plan is required for FBA and most advertising features
• Verification requires LLC documents and personal ID

4. Register for sales tax:

• Use TaxJar or Avalara to manage sales tax collection
• Connect to Amazon's automatic tax collection where available

5. List your products

FBA vs. FBM: which is right for you?

FBA (Fulfillment by Amazon):

• Amazon stores your inventory in their warehouses
• They pick, pack, and ship orders
• Customer service handled by Amazon for shipping issues
• Prime eligibility — huge conversion boost
• Fees: storage + fulfillment per unit

FBM (Fulfilled by Merchant):

• You handle warehousing and shipping
• Lower fees but more work
• Good for large, heavy items where FBA fees are prohibitive
• Control over packaging and shipping experience

Sales tax on Amazon

Amazon collects and remits sales tax for most states automatically ("Marketplace Facilitator" laws). For states where Amazon doesn't handle this, you may have obligations. Services like TaxJar (monthly fee) integrate with Amazon and handle this automatically.

For digital product sellers: the MoR alternative

If you sell digital products (ebooks, courses, software) on Amazon or your own website, consider using DoDo Payments as a Merchant of Record for your own storefront. DoDo handles global VAT/GST/sales tax automatically, so you can sell directly to consumers without the Amazon marketplace fees (which can be 15-30% for some categories).

Beyond Amazon: multi-channel e-commerce

Your LLC enables selling on multiple platforms simultaneously:

• Amazon: the biggest marketplace
• Shopify with Stripe US. your own store, full control
• Etsy: for handmade, vintage, and craft items
• eBay: for general commerce
• Walmart Marketplace: growing competitor to Amazon

Financial infrastructure for Amazon sellers

Inventory financing

As your Amazon business grows, you may need inventory financing. With a US LLC and established banking history on Mercury:

• Amazon Lending becomes available (based on your selling history)
• Various third-party inventory financing options become accessible
• Your LLC's financial track record builds credibility with lenders

Amazon FBA: the complete LLC setup

If you're selling on Amazon through Fulfillment by Amazon (FBA), here's the specific setup:

Sales tax nexus: the critical consideration

When you use Amazon FBA, your inventory is stored in Amazon warehouses across multiple US states. This can create sales tax nexus: meaning you may be required to collect and remit sales tax in those states. This is different from income tax (which depends on ECI, sourcing and documentation for non-residents).

Good news: Amazon collects and remits sales tax on behalf of sellers in most states under marketplace facilitator laws. But you should still track nexus and may need sales tax registrations in some states.

Shopify + LLC: the direct-to-consumer path

For DTC brands, the LLC + Shopify combination is powerful:

1. Shopify Payments → powered by Stripe US (2.9% + $0.30)
2. Revenue deposited → directly to Mercury
3. Supplier payments → via the validated USD rail in Mercury or Wise for international suppliers, checking fees, FX and recipient-bank charges before sending
4. Shipping → integrated with ShipStation or Shippo
5. Sales tax → managed through TaxJar or Avalara

Product sourcing through your LLC

When sourcing products internationally (from China, India, Vietnam), your LLC provides advantages:

Payment flow for e-commerce sourcing:

1. Revenue → Amazon/Shopify → Mercury checking
2. Supplier payments → Mercury wire (domestic) or Wise (international at mid-market rate)
3. Amazon fees → Deducted automatically by Amazon
4. Operating expenses → Mercury checking
5. Owner's Draw → Mercury → Wise → personal bank

E-commerce vs. services: key LLC differences

Amazon account types and LLC requirements

Dropshipping through your LLC

For dropshipping businesses, the LLC provides critical advantages:

• Stripe/Shopify Payments: process cards from your own store
• Mercury: manage supplier payments in USD with reconciled statements and current fee checks
• Wise: pay international suppliers (China, India) at real exchange rates
• Professional invoicing: legitimate US business entity for supplier negotiations

> <a href="/en/book">Review my case</a>

To keep going on this thread, <a href="/en/blog/routing-9-digits-swift-iban-when-to-use-each">IBAN, SWIFT and routing numbers: understanding international banking codes</a> and <a href="/en/blog/scale-your-digital-business-cleanly-with-a-us-llc">How to scale your digital business with a US LLC</a> fill in nuances this guide only touched on.

Separate marketplace proceeds from operating cash

For ecommerce, account choice depends on marketplace, payment processor, suppliers and currency; the banking architecture must separate collections, purchases and reserves:

• Mercury: for Amazon sellers, its value depends on payout flow, supplier payments, reserves, chargebacks and whether the account can be documented during marketplace or bank review.

For an ecommerce operator, the decision is not only whether an LLC can sell online. The real review is whether Amazon, payment processors, suppliers, inventory flows and tax residence all tell the same story before volume starts exposing weak documentation.

Banking, tax and evidence criteria

Fintech and CRS information evolves; here is the current state:

• Amazon and ecommerce need banking that can absorb volume. Marketplace payouts, refunds, ads, supplier payments and inventory purchases should not share a vague personal trail.
• Separate the payout account from the working reserve. Ecommerce cash flow can look profitable while inventory and advertising are consuming liquidity. A second business layer helps avoid spending tax or supplier money by accident.
• Provider reviews should be expected. A seller may be asked for invoices, supplier contracts, website, source of funds or proof of activity. Those documents should already match the LLC file.
• Exentax designs the stack around fulfilment reality. Amazon FBA, 3PL, dropshipping, digital products and hybrid ecommerce each create different banking and compliance needs.