EIN

Do You Need an EIN to Sell on Amazon?

In this article, we will explain whether an EIN number is required for your Amazon business. First, there will be situations where you need an EIN number for your business on Amazon. Also, in some cases, you will not need an EIN number for your business on the Amazon site. In the scope of the title, ‘Do you need an EIN to sell on Amazon?’ let’s explain details about this situation.

In What Situations Would You not Need an EIN for Your Amazon Account?

You can sell individually on Amazon. To register with Amazon for the first time for individual selling, you have to: 

  • Open an account with Amazon. 
  • You can add your bank account details. 
  • You can also use your SSN number.

There are many benefits of following these steps. These benefits are as follows:

  • You sell your products faster.
  • You can test your sale on Amazon.
  • Your bank account and SSN number are sufficient to start selling. You don’t need anything else.

You need to start (personal selling) on ​​the Amazon platform as we described above. Depending on the title, ‘Do you need an EIN to sell on Amazon?’ we can say that: Using this method is fine until your sales increase. When your sales go up, your accounting works will increase. It is not enough to use this method when your accounting work increases.

Single-Member LLC

You can start an LLC. You can also keep all purchases separate from your personal expenses. You can get a business credit card. At this point, let’s explain a situation that not everyone understands. If you have a business entity, you do not need an EIN number to run your business on Amazon.

You can operate as the sole member of an LLC. You do not need to obtain an EIN number with the IRS for this. Depending on the title, ‘Do you need an EIN to sell on Amazon?’ we can say that: In such a case, the IRS does not consider it necessary to provide an EIN number. If you’re a single-member LLC also under Amazon tax terms, simply enter your SSN number. In short, if you are a Single-member LLC, fill in the tax information as if you were an individual seller.

If you have a single-member LLC, you cannot always handle your taxes as a sole proprietorship. In other words, you may need an EIN number even if you are a single LLC member. In the scope of the title, ‘Do you need an EIN to sell on Amazon?’ below we explain the situations where an EIN number is required even if you are the only LLC member.

In What Situations Would You Need an EIN for Your Amazon Account?

If you are a single-member LLC, you can choose between S-Corp and C-Corp. When you make this choice for your company, the IRS will not see you as an individual. The IRS will now consider you an S-Corp or C-Corp.

As a result, even if you are the only person in your LLC, an EIN number is required when you choose one of these options. Therefore, even if you are a single member in your LLC, you will need an EIN when you enter any of these selections.

In the scope of the title, ‘Do you need an EIN to sell on Amazon?’ we can say that: Do you need an EIN number if you have an LLC with multiple members? There is no need to choose the S-Corporation or C-Corporation option in a multiple-member LLC.  Such LLCs are automatically registered as partnerships. In short, if you own LLC with multiple members, you should apply for the EIN number.

S-Corp, C-Corp, or Partnership Business

The IRS agency can accept an LLC as: S-Corp, C-Corp, or partnership. In other words, the IRS can skip the LLC part for this company. So the company can have a real S-Corp, C-Corp or partnership. LLCs selected in taxation proceedings work the same way. But on the Amazon platform, select your business type accordingly in the federal tax section.

As a result, in this article, you learned when to use an EIN for your Amazon seller account. We’ve also explained the situations where you won’t need an EIN number. In the scope of the title, ‘Do you need an EIN to sell on Amazon?’ we can say that: We recommend that you consult an expert to make the best choices in this regard.

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