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. |