US Company Setup and Tax for E-commerce Sellers
Short answer: Most e-commerce sellers start with an LLC and get an EIN. They then add state sales tax permits and resale certificates as their sales channels and suppliers require them. Non-US owners follow the same path, with four differences. First, you can get an EIN without an SSN or ITIN by applying to the IRS by phone, fax or mail. Second, you generally need an ITIN only if you personally have a US federal tax purpose. Third, an S-corp election is not open to nonresident alien shareholders. Fourth, a foreign-owned single-member LLC must file an annual information return with the IRS even when it owes no US tax. This hub puts ECOMHUTSY's guides in order, from choosing an entity to tax IDs, sales tax and yearly upkeep, and links each step to the service that handles it. The guides are general information, not legal or tax advice. Confirm your own position with a qualified US tax professional and an adviser in your home country.
Choosing an entity: LLC, S-corp or C-corp
An LLC is the most common starting point. By default, the IRS treats a single-member LLC as a disregarded entity and a multi-member LLC as a partnership. An S-corp is a tax election, not a separate type of company. The IRS does not allow nonresident alien shareholders in an S-corp, so this option is mainly for US owners. A C-corp is taxed separately from its owners and often suits founders who plan to raise investment. It also carries its own filing work and its own tax on profits.
Forming and maintaining a US LLC as a non-US owner
You form an LLC by filing with a US state and appointing a registered agent in that state. States generally do not require owners to be US citizens or residents. The order of steps matters: the entity first, then the EIN, then the bank account, then marketplace registration, with the same legal name everywhere. After formation comes the yearly upkeep. That includes a state annual report in most states. A foreign-owned single-member LLC also files Form 5472 with a pro forma Form 1120 every year, and the IRS penalty for missing it is significant.
Tax IDs: EIN and ITIN
The EIN is your business's US tax ID. Banks, Amazon's tax interview and most US suppliers will ask for it. The IRS issues it free of charge. An ITIN is a personal taxpayer number for people who are not eligible for an SSN. You usually apply for it with Form W-7, attached to a federal tax return. It does not give you any immigration status or work authorization. Most non-US owners of a single-member LLC need the EIN first. They only need an ITIN once a personal federal filing or treaty claim requires one.
Sales tax permits and marketplace facilitator rules
In states with marketplace facilitator laws, Amazon calculates, collects and remits sales tax on many third-party sales. That does not remove every obligation for the seller. Inventory stored in a state can create a tax connection, called nexus, with that state. Sales through your own website are not covered by the marketplace. And buying wholesale usually starts with a state sales tax permit. Work out where you have nexus before you assume that the marketplace covers everything.
Resale and exemption certificates for wholesale buying
A resale certificate lets a registered reseller buy inventory without paying sales tax at the time of purchase, because tax is collected later when the item is sold. Each state sets its own form and its own rules for accepting certificates from other states. Most suppliers want to see a sales tax permit first. Wholesale distributors often ask for a certificate before they will open an account at all, so make it part of supplier onboarding, not an afterthought.
resale certificate →tax exemption certificate →FBA wholesale management →
Common questions
Should an e-commerce seller choose an LLC, an S-corp or a C-corp?+
Many sellers start with an LLC because it is simple to form and maintain. An S-corp election can suit some US owners, but nonresident aliens cannot be S-corp shareholders. A C-corp often suits founders who plan to raise investment. Choose with a qualified tax adviser.
Can a non-US resident get an EIN without an SSN or ITIN?+
Yes. The IRS online application requires an SSN or ITIN, but foreign applicants can apply by phone, fax or mail using Form SS-4. The IRS does not charge for an EIN.
Do Amazon sellers need a sales tax permit if Amazon collects the tax?+
Often, yes. Amazon collects tax on many marketplace sales, but stored inventory can create nexus, sales on your own website are not covered, and wholesale buying usually requires a permit. Check each state where you hold stock or make sales.
What annual filings does a foreign-owned US LLC have?+
Most states require an annual or biennial report. A single-member LLC wholly owned by a foreign person must also file Form 5472 with a pro forma Form 1120 each year, even if it owes no US income tax.
Is this tax advice?+
No. These guides are general information based on public IRS, state and marketplace guidance, and the rules change. Speak to a qualified US tax professional, and an adviser in your home country, before you act.
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