What Licenses Do I Need To Sell On Amazon? That is a question we are often asked by people interested in starting an Amazon business.
Technically, you don't NEED any licenses to sell on Amazon. All you really NEED to start selling on Amazon is a computer with WiFi and a credit card.
If you want to build an Amazon business the right way, we highly suggest you obtain two licenses;
1. Re-Seller Permit
Often referred to as a Re-Sale Certificate, Re-Seller Permit, or Sales Tax ID, this license is required if you plan to buy new products from authorized US suppliers and then re-sell them on Amazon.
This license allows you to not pay sales tax when you purchase inventory from your supplier and allows you to collect sales tax from your customers (or, in our case, allows Amazon to collect sales tax on your behalf).
A re-seller permit makes a legitimate retailer in the eyes of many suppliers. So much so that most authorized US suppliers will request your re-seller permit information before they do business with you.
2. Business License (Business Entity)
An LLC, Corporation, S Corp, other other business entity is usually not required to start selling on Amazon but we highly recommend you use a legal business entity for Amazon.
We recommend you use an LLC for three reasons 1. Legitimacy, 2. Tax Benefits, 3. Corporate Shield.
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