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Old 08-22-2017, 03:18 PM
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Tax/Business Start Up concerns for Prospective Amazon FBA Business Owner

HI ALL!

So, I?m working on setting a business system up for selling through Amazon FBA.
For me, a major attraction to getting into FBA selling was the potential to be location independent, meaning I can travel the globe if I wanted, while running my FBA business.

In arriving at my business mentor?s recommended Start Up tasks such as applying for city permits, business licenses, business entity set-up, etc. I'm concerned I won't be able to travel as freely as I dreamt up; now, this is with me assuming I'll need to register my business in said Start Up tasks as it having a single location- i.e. Los Angeles, CA.

Can someone please clarify my concerns, and also add in any other legal/tax/governmental/etc. necessary measures for launching/running an Amazon FBA business while traveling the globe?

Hope to hear back soon.

Thank you!

Drew G.



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Old 08-23-2017, 03:10 AM
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Join Date: Oct 2010
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Amazon.com is the largest online retailer. In fact, it?s quickly becoming the largest search engine as well.
People often head to Amazon when they are looking for something ? even before searching Google. selling on Amazon using FBA beats out so many other e-commerce business models!
while it?s not 100% required, setting up a legal entity is generally a good idea. Amazon will let you register with just your SSN#.
Amazon doesn't require you to have a business license but your state revenue service might. Amazon usually determines which warehouse they will require you to send shipments based on your business address. FBA, fundamentally, it?s the same as a traditional ecommerce business. But, instead of your having to fulfill orders one by one, Amazon stores your products for you and even picks, packs and ships them out to customers. If you are strictly looking for tax advantage and corporate legal protection, delaware has always been the best state to open a company. The state you incorporate in you also have to collect state sales tax. Since there is not many people living in delaware, there is double benefit there. You also can incorporate quite easily and many Amazon sellers have. But you can just as easily buy individual policies just by yourself. There would be an advantage to being part of a larger group, perhaps, but simply incorporating by itself won't get you this. Sellers who use Amazon?s Fulfillment by Amazon service are required to collect and remit sales tax in any states where their inventory has been stored.

FBA warehouse in USA are spread over multiple states and locations. I don't know which specific warehouse your products will be in, nor i think anyone will be able to answer that question for you here. When you sign up and start shipping the goods to FBA, they will split up the goods to 2-3 different warehouse. So I hope that give you a better understanding to your FBA question for tax purpose.



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