Amazon FBA, LLC or Inc.
Asked by: Chris - 7 March, 2014
Hello, I am currently selling on Amazon FBA. Just a few item to test it out. Not as a Pro seller yet. I would like to go Pro and buy direct from wholesalers. They will not deal with me without a registered Co. and a tax ID. I live in Tx. I'm not sure what to do. LLC or S corp?
I am the only employee and or shareholder and will be into the future.
Which entity would you recommend ?
Tax benefits?
Tax levels?
Any other info you could give me dealing with Amazon at the pro level would be great.
Thank you.
Hello, I am currently selling on Amazon FBA. Just a few item to test it out. Not as a Pro seller yet. I would like to go Pro and buy direct from wholesalers. They will not deal with me without a registered Co. and a tax ID. I live in Tx. I'm not sure what to do. LLC or S corp?
I am the only employee and or shareholder and will be into the future.
Which entity would you recommend ?
Tax benefits?
Tax levels?
Any other info you could give me dealing with Amazon at the pro level would be great.
Thank you.
Answered by: Ray Albert - 11 March, 2014
Dear Chris,
To my understanding, LLC is usually the more practical entity as it is very flexible and easy to maintain. We have a research article titled 'LLC vs. Corporation' which compares these entity types conveniently side-by-side.
We have another article titled 'Choosing Business Entity' which you will also find helpful.
When dealing with Amazon FBA you might be interested to review the following Q&A: Form a LLC for online business using Amazon FBA. Amazon also maintains a forum for FBA sellers that you should check out.
Dear Chris,To my understanding, LLC is usually the more practical entity as it is very flexible and easy to maintain. We have a research article titled 'LLC vs. Corporation' which compares these entity types conveniently side-by-side.
We have another article titled 'Choosing Business Entity' which you will also find helpful.
When dealing with Amazon FBA you might be interested to review the following Q&A: Form a LLC for online business using Amazon FBA. Amazon also maintains a forum for FBA sellers that you should check out.
