What Is the Best Way to Sell on Amazon Without an LLC?

What is an LLC?

An LLC, or Limited Liability Company, is a legal business structure that protects the personal assets of the business owners. LLCs separate the business from the individual owners, so the owners' personal assets are protected from any business debts or liabilities.

Benefits of an LLC for Selling on Amazon

Forming an LLC provides several advantages for those selling on Amazon:

Personal asset protection - Your personal assets like your home or car are protected from any business lawsuits or debts.

Tax benefits - LLCs allow you to take business expense deductions and choose how you are taxed.

Credibility - Customers often feel more comfortable buying from an established LLC rather than an individual.

However, keep in mind you can still sell on Amazon successfully even as an individual seller without an LLC. An LLC is not an absolute requirement.

What is an Amazon Individual Seller Account?

An Amazon Individual Seller account allows you to sell products on Amazon without registering a formal business. It is designed for small-scale sellers, ideal for testing out the Amazon marketplace. Some key points about Individual Seller accounts:

No business licenses or fees required - You can sign up for free and start selling quickly.

Lower sales limits - Individual accounts allow you to sell up to 40 items per month.

Easy to upgrade - You can switch to a Professional Seller account in the future if your sales volume increases.

Tips for Creating an Amazon Individual Seller Account

Signing up is straightforward, but make sure you have the following ready:

Your personal identification

A business name and address

Contact information like an email and phone number

Your bank account details

Your tax ID number

Amazon provides guidance during the registration process. As long as you have the required documents and details, creating an account is simple.

Conclusion

Selling on Amazon does not necessarily require forming an LLC, especially when starting out. An Individual Seller account allows you to test selling without any formal business registration. And you can always upgrade your account later as your sales volume grows. Just make sure you understand all policies around operating legally before you begin selling.

Frequently Asked Questions

Do I need an LLC to sell on Amazon?

No, you do not need an LLC to sell on Amazon. You can start selling using an Amazon Individual Seller account without formally registering a business. An LLC provides liability protections but is not required.

What are the sales limits on an Amazon Individual Seller account?

Individual Seller accounts allow you to sell up to 40 items per month. If you exceed this sales volume regularly, you would need to upgrade to a Professional Seller account.

What documents do I need to set up an Individual Seller account?

You will need to provide your personal ID, a business name/address, contact info, bank account details, and tax ID number when registering your Individual Seller account.

Can I sell trademarked products on Amazon without approval?

No, you must obtain approval from the trademark holder before selling trademarked items on Amazon. Confirm the policies to avoid issues.

How much does it cost to set up an Amazon Individual Seller account?

Registering for an Amazon Individual Seller account is free. You can start selling without paying any monthly fees. Fees only apply if you upgrade to a Professional account.

Can I use FBA fulfillment with an Individual Seller account?

Yes, you can utilize Fulfillment by Amazon (FBA) to store inventory and fulfill orders, even with an Individual Seller account. FBA fees would still apply.

What should I do if my sales exceed the 40 item per month limit?

If you consistently exceed 40 sales per month on your Individual Seller account, you would need to upgrade to the Professional Seller account by paying the $39.99 monthly fee.