Signing up for an Amazon account: individual or U.S. company?

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Registering an account on Amazon is becoming an increasingly important topic for many entrepreneurs. However, before doing so, the question arises - is it worth registering an account in the name of an individual or is it better to set up a company in the USA straight away?


In this article, we will look at the benefits of registering an account with a US company and why it may be a better choice.

 

Advantages of registering an Amazon account with a USA company

 

1. Legal status

An Amazon account registered to a USA company has the legal status of a USA resident. When you register, you provide a USA address and tax number, which makes you a legal resident in the eyes of Amazon. This opens up access to certain product and brand categoriesm, as well as items in the pesticide category that may not be available to individuals from other countries.

2. Access to product categories and brands

For those who are residents of other countries, some categories of merchandise may not be available because they are not legal residents of the United States. This may be due to different rules and restrictions in different countries.

One of the most popular product categories on Amazon is the "pesticides" category (this category includes various products such as seeds, chemicals, farm tools and equipment). It is only available to US residents. Besides this, which is very important for those who are engaged in the OA or Wholesale model, many brands and categories can be opened immediately, and it is easier to do this if you are a US resident (which is exactly what the registration of an Account for a US entity gives). And some brands in general is not possible to add to the sale on accounts created on physical and even legal persons of other countries, amazon gives an error: "Your Account Does Not Qualify"..

3. Amazon's trust

Amazon questions the accounts of individuals from CIS countries and Eastern Europe, which can lead to rejections and repeated requests for documents. By registering a company in the USA, you increase the level of trust on the part of Amazon, and the verification process goes smoothly.

4. Control and responsibility

Companies in the USA are less likely to face re-verification and requests for additional documents from Amazon. This makes it easier on the platform and gives you more control over your account. Also, by having a company, you are NOT personally liable, which protects your personal assets.

5. Tax optimization

A company in the USA will help you plan your business and owner's tax burden, complying with all legal requirements of the USA and your country. It will protect you from problems when buying real estate or other assets in the USA, as you will have the necessary documents to prove the source of your income.

Conclusion

Registering an account on Amazon is an important step for those who want to successfully trade on this platform. If the USA market is the main nichefor your business, registering an account directly with a USA company may be a better option. This will give you access to certain product categories, increase your credibility with Amazon, and make tax optimization easier.

FAQ

Most common questions and answers

What documents are required to register a company on Amazon?

Basic documents such as company registration certificate, tax number and bank details to withdraw funds from Amazon, last month's account statement, contact person's passport, visa or mastercard for PRO plan payment, phone number and email id.

What are the additional costs of registering a company on Amazon?

Additional costs may include attorney or consultant fees, enrollment and administrative fees, and Amazon's monthly Pro Plan fee. 

Can I sell on Amazon if I already have a company in another country?

Yes, you can sell on Amazon with a company in another country. However, please note that access to some product categories may be limited, and it is likely that your account will NOT have products in the pesticide category available.

What should I do if my Amazon account application is rejected?

If your account has been rejected, it is recommended that you contact Amazon Support for information about the reasons for the rejection and possible solutions, or professionals who deal with this type of problem.

What taxes will I be required to pay when I sell on Amazon?

Tax obligations depend on your country of residence and USA law. It is recommended that you contact a tax professional for advice.