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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.

Answered by: admin  — 7 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.

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