GUIDE FOR AMAZON SELLERS: HOW TO GET AN EIN?
If you wonder whether you need an EIN or ITIN to sell on Amazon, please read on. Most of the time, we get asked by our clients if it’s possible for them to sell on Amazon and is it required to get an EIN or ITIN. We can say ‘yes’ to both of these questions.
Because of tax purposes, in order to run a business in the US, Social Security Numbers (SSN) and Employer Identification Numbers (EIN) are highly important. In order to report sales and numbers to the IRS by the end of the year, Amazon needs these identification numbers to identify the seller.
Amazon sellers who have an SSN or ITIN can easily get an EIN while those who do not have an ITIN or SSN usually inquire how to get an EIN number to sell on Amazon.
If you need any help getting your EIN number to sell on Amazon please call us at 1-302-867-0778 or email us at email@example.com
Reasons that you will need an EIN to sell on Amazon.
– Amazon needs to be able to identify the seller.
In order to prevent a problem where Amazon sellers could potentially have multiple accounts, this is one of the several ways to protect sellers as well as buyers.
– Tax purposes for the Internal Revenue Service (IRS).
By the end of each year, Amazon disclose sales numbers to IRS and then compares them to the numbers that each Amazon seller reported to the IRS. Amazon can’t submit these to IRS without an EIN number.
– Importing and customs.
US Customs and Border Protection (CBP) requires an identifying number as well. More generally, you can give more information to CBP during the import so that your goods will be in Amazon’s warehouses faster.
What is an Employer Identification Number (EIN)?
An Employer Identification Number also called Federal Tax Identification Number is a nine-digit number assigned by the Internal Revenue Service (IRS) to classify taxpayers who need to pay tax returns.
The application process to obtain an EIN requires an ITIN or an SSN for Amazon sellers. However, if they do not have either of these, they will seek info about how to get an EIN to sell on Amazon. To see more check out ein-itin.com
Who is eligible to get an EIN?
Regardless of the size of your business, all owners of business need an EIN. You must obtain an EIN whether you are an LLC, a corporation or sole proprietor if you pay more than $600 annually. Amazon sellers must be aware of that owning a business is a sole proprietorship and having no employees makes them ineligible for an EIN.
Do you need an ITIN or SSN to get an EIN?
Having an ITIN or SSN to acquire an EIN is not necessary actually. But there are some factors that you must consider.
-Structure of the corporation (S-Corporation, LLC, C-Corporation, etc.)
-If you are U.S. resident or non-U.S. resident
-U.S. based co-founders of the business
-Association of a business with an American accountant or a lawyer.
If you need any help getting your EIN number to sell on Amazon please call us at 1-302-867-0778, or email us at firstname.lastname@example.org