If you are planning to start an online business and wondering if do you need a business license to sell in Amazon, then you’re in the right place.
As an entrepreneur selling online, you will also face some challenges like those brick-and-mortar businesses. You’ll be thinking if you will need a business license for Amazon or you can just launch your store without any legalities.
So to make sure you’ll do the right thing, below are some reminders for you to get started with your Amazon business.
Get A Business License To Sell On Amazon
If you keep asking yourself, Do I need a business license to sell on Amazon? The answer is Yes.
Whether you are operating as a sole proprietor, an LLC, or a corporation, securing Amazon FBA business license is a must-have. This does not only give you the permit to operate legally but it also gives you the confidence to run your business without facing any restrictions and penalties anytime soon.
Therefore, it is important that you secure your business license for Amazon FBA prior to actively selling online. While Amazon may not be strict about your requirements, failure to comply with your local, state, and federal rules can be a problem.
Types of Products That Need Amazon FBA Business License
If you want to get started selling on Amazon, make sure you familiarize yourself with the products that require Amazon seller business license.
These product requirements all depend on the industry and location. If unsure, you can refer to your accountant, tax advisor, and Attorney for guidance and advise. This way you won’t face any hassle in opening your Amazon business.
The following industries require federal licenses. You would also want to go to their respective agencies to process your requirement.
- For aviation, you can go to the Federal Aviation Administration.
- For Alcoholic Beverages, The Local Alcohol Beverage Control Board and the Alcohol and Tobacco Tax and Trade Bureau can issue your license.
- For Agriculture. The US Department of Agriculture can help.
- If you plan to sell ammunition, firearms, and explosives, you can refer to the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
- If you are selling products for the fish and wildlife industry, you need to secure permits from the US Fish and Wildlife Service.
- For commercial fisheries, you can go to the National Oceanic and Atmospheric Administration Fisheries Service for the license.
- If you’re into the maritime transportation industry, the Federal Maritime commission if your way to go.
- For mining and drilling, the Bureau of Safety and Environmental Enforcement can issue your permit.
- For transportation and logistics, the US Department of Transportation should be your go-to agency.
If you are in any of the industry mentioned above, you are required to obtain your federal license. However, we seldom see Amazon sellers in any of those markets.
In some area, a general business license is necessary depending on state even if you are selling online and no customer is visiting your location.
Rules may differ from state to state so you should always check with your local jurisdiction to which permit and license you should comply. You can refer to your state’s secretary and department of licensing for more information whether you are required or not to register.
How To Get A Business License For Amazon
Just like securing your stock items and other requirements, your business license is an important one as well. So if you are serious about running your Amazon business, it’s time to get your Amazon license now.
To get you a business license from Amazon, check with your town or city hall. They will ask you some requirements so you could push through with your registration.
Filling out a registration form won’t take you more than 10 minutes and the fee is only minimal. You also have the option to register as a corporation, LLC, or sole proprietor.
Aside from that, you will also need a sales tax ID and permit to pay and collect sale taxes. Therefore, as an Amazon seller, you need to register for foreign qualification on the states where you’ll sell your products and conduct business.
This way you have a tex nexus so you could be authorized to collect and remit sales tax depending on the state. But before doing so, it’s highly recommended you discuss the details with your tax advisor or attorney to understand the ins and outs of it.
Securing an Amazon business license can be daunting especially if you have other requirements to complete to successfully run your online business and sell on Amazon.
If you want to expedite the process and avoid the hassle of doing the leg work, Amz- Expert can help. Our team is experienced and professional in handling Amazon registration so you can legally operate your business. You don’t need to spend countless hours to get your registration approved. Our legal team can help you so you can complete the registration process seamlessly.
The good news is you don’t have to go through the tedious process because we have it covered. Over the years, we have helped businesses run a registered and licensed online business. We can surely help you with yours.
Do you need a business license for Amazon? No need to worry because AMZ- Expert can help you in processing your requirements so can get started selling on Amazon and make money now. Contact us to get started!