Do You Need a US LLC to Sell on Amazon?

Short answer: You do not have to open a US LLC to sell on Amazon. Amazon's official registration guide says a seller can register as an individual. An LLC can help with banking, payments and branding in some cases, but it brings annual US reporting obligations and costs. Make the decision together with a tax and legal professional.

Last updated: November 2026. This is a general guide from the DevCommerce team, not legal or tax advice. We checked the facts against official IRS, FinCEN and Amazon pages. For your own situation, talk to an accountant or lawyer who knows both US and Azerbaijani tax.

Can you open an Amazon account from Azerbaijan without an LLC?

Yes. The FAQ on Amazon's seller registration guide says plainly that you do not need to be an LLC or registered business to sell on Amazon. During registration you choose "None, I am an individual" as the business type, and Amazon adapts the form for individuals. Azerbaijan is also on the list of countries accepted for registration.

So the idea that you must "open a US company first, then join Amazon" is not true for everyone. Many sellers start as individuals, receive payouts through a service such as Payoneer and come back to the company question only once sales are stable. We explain individual registration step by step in /en/blogs/how-to-sell-on-amazon-from-azerbaijan-569.

What does a US LLC give a seller?

An LLC separates the business from your personal affairs and can make some services easier to access: a business account at a US bank or fintech, US-based payment providers, and contracts with wholesale suppliers and distributors. None of this is automatic, though. Every bank and provider runs its own checks and can decline an application.

• Payment providers: for example, Azerbaijan is not on Stripe's list of supported countries. A seller with a US company can apply for a US account, but approval is not guaranteed.
• Wholesale: some US distributors only work with companies that have sales tax documentation.
• Brand and contracts: signing contracts, issuing invoices and bringing in partners is easier under a company name.
• Separate books: business income and expenses sit in a separate account.

What obligations and risks does an LLC bring?

A single-member LLC owned by a foreign person is usually treated as a disregarded entity for tax purposes, but it must still file Form 5472 with a pro forma Form 1120 with the IRS every year. The penalty for not filing on time or correctly is $25,000. On top of that come state fees, a registered agent and bookkeeping costs.

These requirements are set out in the IRS Form 5472 instructions: a foreign-owned US disregarded entity must attach Form 5472 to a pro forma Form 1120 and file it by that form's due date, and it cannot file Form 5472 electronically. This is also the most common problem we see: the company is formed and the owner forgets that the filing is due even with zero sales.

There is an Azerbaijani side too. Forming an LLC does not automatically remove your tax residency or local obligations in Azerbaijan. Clarify with a local accountant in advance how foreign income should be declared.

Which state should you choose: Wyoming, Delaware or New Mexico?

These three states come up often among foreign founders because formation can be done remotely and annual requirements differ. The main differences between states are formation and annual fees, annual report requirements and how much owner information is public. There is no "best state"; the choice depends on your business plan and where you actually operate.

Fees and rules change, so take specific numbers only from the state's official website or from the professional handling your formation.

How do you get an EIN, and does it cost money?

An EIN is a US company's tax identification number, and the IRS issues it for free. According to the IRS, applicants whose principal place of business is outside the US cannot use the online tool and must apply by phone, fax or mail. The online tool also requires an SSN or ITIN.

The IRS EIN page states that you never have to pay a fee for an EIN. Third-party firms may offer to get one for you; that is a paid service, not an IRS fee. You apply with Form SS-4, and the responsible party's details must be correct.

Once you have the EIN, keep the IRS confirmation letter (usually called CP 575) somewhere safe. Banks, payment services and Amazon often ask for official EIN confirmation when they verify company details.

Can you open a US bank account from Azerbaijan?

Sometimes, but with no guarantee. US banks and fintech companies treat foreign-owned LLCs according to their own rules: some open accounts remotely, some require an in-person visit, and some do not work with residents of certain countries at all. Conditions change quickly, so check each provider's current requirements directly.

You can receive Amazon payouts without an LLC or a US bank account: services such as Payoneer issue receiving-account details in the currencies Amazon supports. See our comparison of payment services in /en/blogs/payoneer-paypal-stripe-wise-azerbaijan-573.

Does an LLC need to file a BOI report?

According to FinCEN's official page, companies created in the US are currently exempt from Beneficial Ownership Information (BOI) reporting. FinCEN made this exemption permanent with a final rule in 2026. Because these rules have changed several times in recent years, check FinCEN's current position before you form a company.

Source: the FinCEN BOI page. Note that the BOI exemption does not remove IRS filings such as Form 5472.

What are the annual costs of an LLC?

Annual costs include state fees, a registered agent, an address service, an accountant to prepare tax filings and bank service fees. The total varies a lot by state and provider. You pay these costs whether or not you have sales, which is why forming an LLC before you have any sales is often a rushed decision.

• the state's annual fee or report;
• a registered agent;
• an accountant for IRS filings (Form 5472 and the pro forma 1120);
• bank or fintech account fees;
• a local accountant and filings in Azerbaijan.

How does forming an LLC work, step by step?

The general order is: first confirm with a professional that you really need an LLC, then choose a state and a registered agent, file the formation document with the state, get an EIN, open a bank account and set up a filing calendar. Company details go into your Amazon account last, once the documents are ready.

1. Advice: discuss your business plan with an accountant who knows US and Azerbaijani tax.
2. State and registered agent: check fees and annual requirements on the official website.
3. Formation: file the formation document (usually Articles of Organization) with the state's Secretary of State.
4. Operating Agreement: put the company's internal rules in writing; banks often ask for it.
5. EIN: apply to the IRS with Form SS-4.
6. Bank: choose a bank or fintech that works with foreign-owned LLCs.
7. Calendar: set reminders for Form 5472, the state annual report and registered agent renewals.

What should you watch for when opening an Amazon account as an LLC?

For a company registration, Amazon asks for the company's registration document, the owner's ID and proof of address. The company name, address and registration number must be identical across all documents; mismatches slow verification. If you use an address from an address service, check in advance that it meets Amazon's requirements.

Amazon's registration guide lists a "business license or registration" document separately for companies. Changing company details after registration can trigger extra verification, so decide up front which status you will register under.

Who needs an LLC and who does not?

A seller who is just starting on Amazon, testing a product and able to receive payouts through Payoneer usually does not need an LLC right away. For a seller planning wholesale with US distributors, access to US payment providers or a business with a partner, an LLC can make sense. Either way, decide with a professional.

What are the most common mistakes when forming an LLC?

The costliest mistakes are forgetting Form 5472, forming the LLC long before any sales and paying annual costs for nothing, believing "tax-free company" promises, ignoring obligations in Azerbaijan and paying for an EIN as if it were an IRS fee. Getting professional advice up front prevents all of them.

• Remember that the annual IRS filing is due even with no sales.
• When choosing a formation service, ask for a full written list of annual costs.
• Use the same company name, address and EIN details in Amazon and bank documents.
• Sort out tax on both the US and the Azerbaijani side with an accountant.

For the overall Amazon setup, see our What is Amazon FBA guide, and for personal training see the Amazon FBA course page.

Frequently asked questions

Is an LLC required to sell on Amazon?

No. According to Amazon's official registration guide, you do not need to be an LLC or registered business to sell on Amazon. You select "None, I am an individual" as the business type. Azerbaijan is also on the list of countries accepted for registration.

What must a foreign-owned LLC file?

Under the IRS instructions, a foreign-owned US disregarded entity must file Form 5472 attached to a pro forma Form 1120 every year. It cannot be filed electronically. The penalty for not filing on time and correctly is $25,000.

Does getting an EIN cost money?

No. The IRS issues EINs for free and says so on its official page. Applicants whose principal place of business is outside the US cannot use the online tool and apply by phone, fax or mail. Any fee charged by a third party is that firm's service fee.

If I form an LLC, do I still have tax obligations in Azerbaijan?

Forming an LLC does not automatically remove your tax residency or local obligations in Azerbaijan. Clarify in advance, with an accountant who knows both US and Azerbaijani tax, how foreign income should be declared.

Does an LLC have to file a BOI report?

According to FinCEN's official page, companies created in the US are currently exempt from BOI reporting, and the exemption was made permanent by a final rule in 2026. Because the rules have changed before, check FinCEN's current position before forming a company.