Starting to sell on Amazon.com: account types, identity verification, the tax interview, Brand Registry, fees and choosing the right entity (2026)

Nine checkpoints, from preparation to steady operations: the entity, the account and plan, identity verification, the tax interview, payouts, the fulfillment method, brand and category approvals, a fee check, and bookkeeping and annual returns. The first four decide whether the account opens and stays open; the last five decide whether you make money and stay clear of penalties.

Amazon's own figures put third-party sellers at about 60% of paid units sold in its store in the first quarter of 2026. For Chinese sellers and small U.S. sellers alike it is one of the largest online channels, and also the strictest on review and compliance. This guide covers getting onto Amazon and setting up the company correctly; state taxes from FBA inventory, inventory cost and tariffs are in our guide at yclcpa.com/fba and aren't repeated here.

Description: Each row is a checkpoint, with Amazon's requirement, the related government obligation and what YCL can do alongside you.

Checkpoint	Amazon side	Government side	YCL's part
1. Entity	Individuals, U.S. LLCs, U.S. corporations and foreign companies can all register	The entity decides which returns you file, whether Form 5472 applies and how much tax you pay	Pre-launch review: entity, state, whether to file Form 8832
2. Account and plan	Individual $0.99 per item; Professional $39.99 a month	None	Volume check to see which plan costs less
3. Identity verification	Government ID, proof of address from the last 180 days, video call or photo check; China-based sellers need a company business license	The company must be in good standing and the EIN record accurate	Formation, EIN, Good Standing, address change (Form 8822-B)
4. Tax interview	W-9, W-8BEN or W-8BEN-E, with name and TIN matched against IRS records	The wrong form leads to a wrong 1099-K that doesn't tie to your return	Which form to use and how to complete it
5. Payouts	A bank account in your own or your company's name, or an Amazon-approved payment service	Account holder matches the entity; company money stays out of personal accounts	Account setup that feeds the books
6. Fulfillment	FBA, merchant-fulfilled (FBM), Seller Fulfilled Prime (SFP), Multi-Channel Fulfillment (MCF)	Physical presence where inventory sits; who is importer of record	Inventory-state review (see yclcpa.com/fba)
7. Brand and categories	Brand Registry needs a trademark; some categories need approval	Trademarks are filed by attorneys; product compliance by labs and attorneys	Trademark and certification costs booked correctly
8. Fee check	Referral fees, FBA fees, storage, inbound placement, surcharge, ads	Duties go into inventory cost	Per-unit margin model
9. Books and returns	Settlement reports, 1099-K, Tax Document Library	Federal and state returns, Form 5472, off-Amazon sales tax, annual reports	Monthly books, annual returns, compliance calendar

U.S. residents can sell as individuals or through a U.S. company; Amazon says you don't need to be an LLC or registered business. Sellers in China register a North America unified account (U.S., Canada, Mexico, Brazil) through Amazon Global Selling and must use a company business license; individual business licenses (getihu) aren't accepted. Everyone needs a government ID, proof of address from the last 180 days, an internationally chargeable credit card, a bank account for payouts and tax information.

Amazon's registration guide (sell.amazon.com), organized by type of seller:

Description: Each row is a type of seller, with the entity documents, identity and address documents, the tax interview form and points to watch.

Seller	Entity documents	Identity and address	Tax interview	Watch for
U.S. individual (citizen, green card holder, tax resident)	Choose "None, I am an individual"; no company needed	Driver's license or passport; bank or credit card statement from the last 180 days	W-9 with SSN or ITIN	Income goes on Schedule C; switching to a company later means re-verification
U.S.-owned LLC or corporation	State formation documents, registration number, registered address	ID and proof of address for the primary contact and beneficial owners	W-9 with the company EIN (single-member LLCs follow the owner rules)	Registered address must match formation documents; name must match the EIN letter
Mainland China company (Global Selling)	Company business license (individual business licenses not accepted)	Original and color scan of the legal representative's ID card or passport; possible postcard address check	W-8BEN-E	Visa, Mastercard or AMEX, no virtual cards; possible secondary review
Hong Kong or Taiwan company	Local business registration documents	Representative's ID, proof of address	W-8BEN-E	Same as above
Foreign-owned U.S. LLC	U.S. state formation documents, EIN	Foreign owner's passport and proof of address; all beneficial owners disclosed	Depends on whether the LLC elected corporate status: if not, the owner gives a W-8; if so, the LLC gives a W-9	Pro forma 1120 + 5472 or 1120 + 5472 every year

• Beneficial owners: anyone who directly or indirectly owns or holds voting rights over more than 25%, or otherwise controls the business, must be listed; if nobody qualifies, a senior manager is treated as one. A legal representative registering for the company may need a letter of authorization.
• Proof of address: a bank or credit card statement from the last 180 days showing the address you entered. Screenshots, blurry photos and scans with cropped corners get rejected.
• Credit card: used for the monthly fee and other charges; it doesn't need to be in your or your company's name, but Amazon's China page says virtual cards aren't accepted.
• Store name: must be unique and doesn't need to match your business name; the legal business name, however, must match your formation documents and the tax interview exactly.
• One entity, one account: as a rule, one person or company runs one selling account per region; a second account needs a legitimate business reason under Amazon's current multiple-account policy. Using someone else's ID, business license or bank account is a common cause of suspension.
• INFORM Consumers Act: "high-volume" sellers with 200 or more sales and $5,000 or more in gross revenue in a 12-month period must give the marketplace bank, tax ID and contact information and recertify every year; those with $20,000 or more must disclose their name and address to buyers.

If you sell fewer than about 40 items a month and are just testing, the Individual plan is fine; if you plan to advertise, ship in volume to FBA or build a brand, go straight to Professional. The plan and the entity are separate questions: you can hold a Professional plan as an individual. But if you're in it for the long run, expect volume, or have partners or foreign owners, set up the company before you register, because changing the entity on a live account is painful.

• The math: $39.99 ÷ $0.99 ≈ 40.4 items. Steady sales above 40 a month make Professional the cheaper plan.
• China-based sellers: Amazon Global Selling requires a Professional North America unified account.
• When a company makes sense: a U.S. individual selling under an SSN reports on Schedule C, exactly like a single-member LLC; the LLC mainly adds legal liability protection and keeps payouts, books, the brand and any later sale in the company's name. For foreign sellers, U.S. company vs. Chinese company affects W-8s, Form 5472 and U.S. income tax; see the entity table below.
• The cost of switching later: you update the legal entity in Seller Central and retake the tax interview, which often triggers re-verification and can pause payouts; seller forums have plenty of reports of updates that didn't go smoothly. Register with the entity you actually intend to use.

Amazon checks the ID, proof of address, company documents and the details you entered, then asks the primary contact to take a photo of their face with the ID or join a video call with an Amazon associate and show the originals. Verification usually takes three business days or less. A mismatch in name, address or TIN can lead to requests for more documents or a rejection.

• Uploads: high-quality color scans or photos showing all four corners with legible text; no screenshots or blurry images; documents that require a signature must be signed.
• Two ways to verify: a photo of your face with your ID (usually faster), or a scheduled video call where you show the originals of your ID and proof of address. Mainland China sellers include the business license in the photo.
• Address check: Amazon may mail a postcard with a code to the business address you gave, so that address must actually receive mail.
• Get the company side ready first: the state formation documents, the registered address and the name and address on the IRS EIN letter (CP 575 or 147C) should match what you enter on Amazon. If the EIN letter shows an old address, file Form 8822-B first (see yclcpa.com/changes); if the state annual report is late and the company isn't in good standing, file it or reinstate first (see yclcpa.com/annual).
• It happens again later: Amazon re-verifies identity periodically or when risk signals appear (including by video call); changing bank accounts, changing the legal entity or logging in after a long gap can trigger it. Consistent records save far more time than last-minute document hunts.

Every seller completes the U.S. tax identity interview in Seller Central; it produces a W-9, W-8BEN or W-8BEN-E from your answers and is signed electronically. U.S. persons and U.S. entities give a W-9, foreign individuals a W-8BEN and foreign companies a W-8BEN-E. A single-member LLC owned by one foreign person that hasn't elected corporate status is disregarded for tax, so its owner gives a W-8 as a foreign person rather than a W-9 under the LLC's EIN.

Description: Each row is a type of entity, with the form to submit, whose name and TIN go on it, whether Amazon issues a 1099-K and points to watch.

Entity	Form	Name and TIN	1099-K	Watch for
U.S. individual	W-9	Your name; SSN or ITIN	Yes, above the threshold	Income on Schedule C
Single-member LLC owned by a U.S. person	W-9	Owner on line 1, LLC on line 2; TIN per the W-9 instructions	Yes, above the threshold	Taxed like the individual
U.S. C corporation, S corporation, multi-member LLC	W-9	Entity name and EIN	Yes, above the threshold	Files 1120, 1120-S or 1065
Foreign-owned LLC that elected corporate status on Form 8832	W-9	LLC name and EIN	Yes, above the threshold	A U.S. corporation: 1120 + 5472
LLC owned by one foreign person, no election	Owner's W-8BEN (individual) or W-8BEN-E (company)	Owner's name; ITIN or EIN if any	Generally no	Pro forma 1120 + 5472 every year; if the income is effectively connected, IRS rules call for a W-8ECI
Chinese company selling directly	W-8BEN-E	Chinese company name; Chinese tax number allowed	Generally no	Whether U.S. inventory creates U.S. income tax is case by case (see yclcpa.com/fba)

• Amazon checks with the IRS: most interviews submitted electronically with an e-signature validate within 3 to 5 business days; full validation can take up to eight weeks, and if you just received your EIN (the interview has a "received within 60 days" box) allow the full time. If validation fails, Amazon emails you and you have 30 days to correct it; after that, selling privileges are suspended.
• W-8s expire: a W-8BEN or W-8BEN-E expires on December 31 three years after you give it, so one submitted in 2026 runs through December 31, 2029. Retake the interview before then; without a current W-8, selling privileges are suspended.
• The classic mistake with foreign-owned single-member LLCs: seeing a U.S. EIN and a U.S. address, many owners submit a W-9. Under the W-9 instructions, a disregarded entity with a foreign owner gives a W-8, not a W-9. With a W-9, Amazon treats the LLC as a U.S. person and issues a 1099-K under its EIN, while the LLC files only a pro forma 1120, so the IRS sees a mismatch. More on W-8s at yclcpa.com/w8ben.
• The W-8ECI gap: if a foreign seller's income is effectively connected with a U.S. trade or business (ECI), IRS rules call for a W-8ECI, which requires a U.S. TIN. Sellers report that Amazon's interview doesn't always offer that path; sales proceeds aren't subject to 30% withholding in any case, so the W-8 here mostly drives 1099-K reporting and status. If the option isn't there, ask a CPA how to complete it and whether to keep a memo on file.
• After a C corporation election, update the interview: once a foreign-owned LLC elects corporate status on Form 8832 it is a U.S. corporation and retakes the interview with a W-9 under its EIN.

Amazon collects and remits sales tax on marketplace orders as a marketplace facilitator in states with a sales tax, and issues 1099-Ks to U.S. sellers. But the 1099-K shows gross sales, not profit, and Amazon doesn't touch your income tax, Form 5472, income or franchise taxes in inventory states, or sales tax on your other channels.

• 1099-K threshold: the federal threshold is more than $20,000 and more than 200 transactions in a year, restored by OBBBA (signed 2025-07-04); some states set lower thresholds and Amazon reports under those. Download the form from the Tax Document Library in Seller Central.
• Reconcile the 1099-K: it includes what customers paid for goods before referral fees, FBA fees and refunds; list the differences from your settlement reports when you file (see yclcpa.com/1099k). No 1099-K doesn't mean no income to report.
• Foreign sellers: foreign persons with a valid W-8 and a non-U.S. address generally don't get a 1099-K, which doesn't mean nothing is due in the U.S.; see the entity table below.
• Sales tax: all 45 states with a sales tax and DC have marketplace facilitator laws, so Amazon collects and remits on marketplace orders and you generally don't. Your website, wholesale, in-person and other channels are yours to handle; some states still require registration or returns from sellers with inventory there; gross-receipts taxes such as Washington B&O and the Texas franchise tax aren't paid by Amazon. Details at yclcpa.com/fba.
• Wholesale and Vendor Central: if you sell to Amazon as a vendor (Vendor Central, usually by invitation), Amazon is the buyer and retailer; you make wholesale sales, collect Amazon's resale certificate, and don't receive a 1099-K.

Amazon pays your sales, net of fees, to the payout account on file on its settlement cycle, and that account must be in your own or your company's name. U.S. sellers usually use a U.S. bank account; China-based sellers can use a domestic Chinese bank account (through the Amazon Currency Converter for Sellers), an Amazon-approved third-party payment service, or a Hong Kong or other overseas account. Since 2026 the U.S. store holds funds until 7 days after delivery (DD+7).

• The account holder must match the entity: if the company sells, payouts go to the company's account. Running company money through a personal account muddles the books and the taxes and invites questions during verification.
• Third-party payment services: Amazon requires that any service receiving your proceeds be enrolled in its Payment Service Provider program. Seller forum posts list LianLian, Payoneer, PingPong and WorldFirst among them; check the current list in Seller Central. With a third-party account, select United States in the "Bank Address" field.
• Currency conversion: with a non-U.S. bank account you're paid through the Amazon Currency Converter at Amazon's rate. In the books, record the settlement in dollars and the deposit in the currency received, and track the exchange difference separately.
• DD+7: order funds become available 7 days after the customer receives the item. Seller forums and trade press report full U.S. rollout in March 2026; merchant-fulfilled sellers with slower shipping feel it most, and Amazon can extend the hold for higher-risk accounts. Build that lag into your starting cash.
• Year-end income: sales made by December 31 that are still held or unpaid are current-year income under the accrual method, and cash-method individuals still work from settlement reports. File from settlement reports, not bank deposits.

Five main buckets: the plan fee ($39.99 a month for Professional), referral fees (15% in most categories), FBA fulfillment fees, storage and inventory-related fees, and advertising. From January 15, 2026, U.S. FBA fees rose by an average of $0.08 per unit with referral rates unchanged; from April 17, 2026, a 3.5% fuel and logistics surcharge applies to FBA fulfillment fees. On November 5, 2026 Amazon announced its 2027 changes: FBA fees up an average of $0.19 per unit.

Description: Each row is a fee, with how it's charged, the 2026 figure or rule and the announced 2027 change.

Fee	How it's charged	2026	Announced for 2027
Selling plan	Monthly or per item	Professional $39.99/month; Individual $0.99/item	No change seen
Referral fee	Percentage of the total sales price (including shipping and gift wrap) or a category minimum	15% in most categories, 3%–45% overall; $0.30 per-item minimum in most categories; plus $1.80 per item closing fee for books, music, video, DVD and software	3D printers from 2026-11-05: 12% on the first $200 and 5% above; Amazon Renewed promotional 10% rate through 2027-10-18
FBA fulfillment fee	Per unit by size, weight and price band	Average +$0.08 per unit from 2026-01-15 (Amazon puts it under 0.5% of the average selling price)	Average +$0.19 per unit from 2027-01-15; oversize tiers redrawn
Fuel and logistics surcharge	3.5% of the fulfillment fee	FBA from 2026-04-17; MCF and Buy with Prime from 2026-05-02	Rate unchanged; Amazon says it keeps reviewing it
Monthly storage and aged inventory	By volume and age; higher October–December	Current, plus a storage utilization surcharge	From 2027-02-01 the storage utilization and aged inventory surcharges go away, replaced by one age-based monthly storage fee
Inbound placement	Per unit when you choose fewer inbound locations	Since 2024	Rate card unchanged; standard-size central inbound regions cut from three to two
Low-inventory-level fee	Per unit when days of supply are too low	Since 2024	From 2027-02-01, only when both the trailing and forward 28-day supply fall below 28 days; new Professional sellers exempt for 365 days, among others
Returns processing, removal, disposal	Per unit	Returns processing fee for certain categories and high-return items	Adjusted; see fee pages
Advertising	Cost per click	Your budget	—

• No new FBA fee types in 2026: Amazon said so in its October 15, 2025 announcement, which also noted no U.S. referral or FBA fee increase in 2025. The fuel and logistics surcharge was announced separately in April 2026 as temporary, and it stays in the 2027 announcement.
• FBA prep services: trade press reports that Amazon stopped U.S. FBA prep and item labeling services on January 1, 2026, so units must arrive labeled and packed. Check Seller Central notices.
• New seller incentives: Amazon advertises more than $50,000 in potential incentives for new sellers (branded sales bonuses, inbound shipping credits and similar), on its own terms. Book the bonuses and credits as fee reductions or income; don't leave them out.
• How fees hit the books: referral fees, FBA fees, storage, surcharges and ads are current expenses; freight to Amazon's warehouses and import duties are inventory cost, deducted as cost of goods sold when the units sell (see yclcpa.com/fba).

Steady volume, a Prime badge and no appetite for shipping and customer service point to FBA; oversize, slow-moving goods or your own warehouse point to merchant fulfillment (FBM); a U.S. warehouse that meets Prime speed and a wish for the badge without sending stock to Amazon point to Seller Fulfilled Prime (SFP); stock in Amazon's network that also has to ship your website or other channels' orders points to Multi-Channel Fulfillment (MCF). For tax, what matters is where the goods sit: inventory in a state gives you physical presence there.

• FBM is measured more strictly: order defect rate, late shipment rate, pre-fulfillment cancel rate and valid tracking rate all need to hit the targets; returns follow Amazon's returns policy (including prepaid return labels), and return shipping is your cost.
• Sales tax on MCF orders: an order sold on your website and shipped from Amazon's warehouse isn't an Amazon marketplace sale, so its sales tax and 1099-K reporting are separate from Amazon (website sales tax: yclcpa.com/stripetax).
• Who is importer of record: when goods ship from China to FBA or a warehouse, the importer of record carries the duties and the right to refunds. Amazon generally won't act as your importer. Duties, the suspended $800 de minimis exemption and inventory cost are in yclcpa.com/fba.

Amazon Brand Registry is free, but it requires a registered or pending trademark issued by the designated government trademark office of a country with a corresponding Amazon store; you must own the mark, and the brand name or logo must be permanently affixed to the product or packaging. For the U.S. store, the usual route is a USPTO application before launch; applicants domiciled outside the U.S. must be represented by a U.S.-licensed attorney.

• What to prepare: a standalone logo image, a photo of the logo on the product or packaging, the registration or application number, a copy of the mark for design marks (it must match the record exactly) and the categories where the brand should appear. The brand name must match the trademark record exactly; a different space, capitalization or punctuation mark can mean rejection.
• Pending applications: Amazon says pending applications work "in some cases." Seller forum reports say pending marks filed directly with the USPTO are sometimes accepted only when filed through Amazon's IP Accelerator (Amazon-vetted law firms). Go by the Brand Registry page at the time.
• USPTO fees: since January 18, 2025, the base application fee is $350 per class, with surcharges for incomplete information or free-form descriptions. Examination takes months, so start before launch.
• Chinese trademarks: Brand Registry only accepts marks from offices on its list of countries with an Amazon store; whether a Chinese mark works for the U.S. store depends on that list at the time. For the U.S. store, a U.S. trademark is generally the safer route.
• Who owns the mark: keep the trademark, brand and account in one entity, or put a written license in place. If a Chinese factory owns the mark and a U.S. company sells, royalties are a related-party transaction that needs arm's-length pricing and a contract, and may bring withholding and Form 5472 reporting (see yclcpa.com/subsidiary). Trademark filings and license agreements belong with an attorney.
• Category approvals and product compliance: some categories, brands and products need approval first; children's products need a Children's Product Certificate, wireless devices FCC authorization, cosmetics FDA registration and listing. Labs and attorneys handle those; we book the costs correctly.

Beyond product and service metrics, tax and identity problems are a common reason new accounts get suspended: a tax interview that doesn't match IRS records, an expired W-8, inconsistent verification documents, borrowed credentials and mismatches during an entity change. All of these can be avoided before you open the store.

Description: Each row is a common problem, with how Amazon responds and how to prevent it.

Problem	Amazon's response	Prevention
Tax interview name or TIN doesn't match IRS records	Email notice; selling suspended if not corrected within 30 days	Copy the name exactly from the EIN letter; tick "received within 60 days" for a new EIN
Expired W-8BEN or W-8BEN-E	Selling suspended without a current W-8	Note the expiry (December 31 of the third year after submission) and retake the interview early
Identity, address or bank details don't line up	Requests for documents, video verification, possible suspension	Align the registered, EIN, bank and statement addresses; update IRS and state records first
Using someone else's ID, license or bank account	Possible policy violation, suspension, frozen funds	Use your own real entity and accounts; agents operate, they don't own
Changing the legal entity (individual to company, new company)	Tax interview redo, re-verification, possible payout hold	Choose the entity before registering; if you must change, have the new entity's documents ready
Company not in good standing or dissolved by the state	May fail re-verification	File state annual reports and renew the registered agent on time (see yclcpa.com/annual)

• Account Health Rating: scored from 0 to 1,000, with 200 and above considered healthy. Policy violations, IP complaints and missed fulfillment targets pull it down.
• Common targets: order defect rate under 1%; for merchant-fulfilled orders, late shipment rate under 4%, pre-fulfillment cancel rate under 2.5% and valid tracking rate above 95%. Your Account Health page governs.
• Appeals: appeals over listings and account deactivations sit with your operations team or service provider; where Amazon asks for company documents, tax documents or IRS records, we prepare the company and tax side.

U.S. residents usually start as individuals or single-member LLCs and look at an S corporation once profit is steady and higher. Foreign sellers on the U.S. store have three common routes: the Chinese company sells directly, a foreign-owned U.S. LLC, or a U.S. C corporation (or an LLC that elected corporate status). The foreign-owned single-member LLC looks simplest but files a pro forma 1120 + 5472 every year, and with U.S. inventory and operations the owner may also owe a 1040-NR. Many higher-volume sellers go straight to a C corporation.

Description: Each row is a seller situation, with the usual entity, tax interview form, annual federal filings and points to watch.

Situation	Usual entity	Tax interview	Annual federal filing	Watch for
U.S. resident, starting out	Individual or single-member LLC	W-9	1040 + Schedule C + 15.3% self-employment tax	Compare an S corporation once profit is steady (see yclcpa.com/scorp)
U.S. resident, higher profit or partners	LLC or corporation taxed as an S corporation; multi-member LLC	W-9	1120-S or 1065 with K-1s	Reasonable salary for S corporations; foreign persons can't be S corporation shareholders
Foreign individual owning a U.S. LLC alone, no election	Single-member LLC (disregarded)	Owner's W-8BEN	Pro forma 1120 + 5472; owner files 1040-NR on effectively connected income (needs an ITIN)	$25,000 per missed Form 5472; U.S. inventory raises ECI risk
Foreign individual or company; U.S. LLC elects corporate status on Form 8832, or a U.S. corporation is formed	C corporation	W-9 (company EIN)	1120 + 5472	21% federal tax; dividends to foreign owners withheld at 30%, generally 10% under the U.S.–China treaty; 60-month lock after a Form 8832 change
Chinese factory or trading company + U.S. subsidiary	U.S. C corporation buying from the Chinese company	U.S. company's W-9	1120 + 5472 (related-party transactions)	Arm's-length purchase prices (§482); inventory basis capped by customs value (§1059A) (see yclcpa.com/subsidiary)
Chinese company selling directly, no U.S. company	Chinese company	W-8BEN-E	1120-F if there is effectively connected income; treaty positions disclosed	Whether U.S. inventory creates a permanent establishment is case by case (see yclcpa.com/fba)
Multi-platform seller (Amazon + Walmart + TikTok + website)	One company with books by channel, or a company per brand	Same entity and TIN on every platform	By entity; off-marketplace sales tax yourself	Consistent details everywhere; inventory states reviewed together

The full analysis of the foreign-owned single-member LLC (disregarded status, W-9 vs. W-8, effectively connected income, the Form 8832 C corporation election, dividend withholding) is in our guide at yclcpa.com/walmart. The Amazon-specific points:

• Three layers for a foreign-owned single-member LLC: the LLC files a pro forma 1120 + Form 5472 by April 15 each year, on paper or by fax (see yclcpa.com/5472); the owner gives a W-8 in Amazon's interview; and with goods in U.S. FBA warehouses and ongoing U.S. sales, the owner's profit may be effectively connected income that calls for a 1040-NR and an ITIN (see yclcpa.com/itin).
• Electing C corporation status on Form 8832: the LLC then files 1120 + 5472, pays 21% federal tax, and profit no longer flows through to the owner. Under Treas. Reg. §301.7701-3(c)(1)(iv), after a change in classification you generally can't change again for 60 months; an initial election effective on formation doesn't count. After the election, retake Amazon's interview with a W-9 (see yclcpa.com/ccorp).
• Dividends to foreign owners: a C corporation's dividends to foreign shareholders are withheld at 30%; a Chinese tax resident with a valid W-8BEN or W-8BEN-E who qualifies under the treaty generally gets 10%, and the company files Forms 1042 and 1042-S.
• Chinese factory plus U.S. company: purchase prices from a related Chinese factory must be arm's length (IRC §482), and the U.S. cost basis of imported goods generally can't exceed customs value plus related costs (IRC §1059A). A low declared customs value and a high book cost won't reconcile. Related-party transactions are reported on Form 5472 each year (see yclcpa.com/subsidiary).
• State taxes: Amazon runs many warehouses in Texas, and inventory there generally creates nexus; 2026 and 2027 franchise tax reports with total revenue at or under $2,650,000 owe no tax but still file an information report. LLCs and corporations with inventory in California or over California's doing-business thresholds owe at least the $800 minimum franchise tax. Picking a state: yclcpa.com/llc; comparing entities: yclcpa.com/entity.
• BE-13: a foreign person who sets up a new U.S. company and takes 10% or more of the voting interest files a BE-13 with the Bureau of Economic Analysis within 45 days.

Amazon has the most traffic and the most mature fulfillment network (FBA), along with the most layers of fees and the strictest review and account health rules. Walmart charges no monthly fee and also takes 15% in most categories; Wayfair works on a supplier model in which Wayfair itself is the seller; Etsy is built around handmade, vintage and creative goods; TikTok Shop runs on content and creators; on a Shopify website you sell directly and collect sales tax yourself. For tax, the key differences are who the seller is, who collects sales tax and who issues the 1099-K.

Description: Each column is a channel and each row a point of comparison: seller of record, main fees, fulfillment, who can join, sales tax, 1099-K and payouts.

	Amazon	Walmart	Wayfair	Etsy	TikTok Shop	Shopify website
Seller of record	You (third-party seller); Amazon under Vendor Central	You	Wayfair (you are the supplier)	You	You	You
Main fees	Professional $39.99/month; 15% referral in most categories; FBA fees	No monthly fee; 15% referral in most categories (3%–20%)	No commission; Wayfair pays the wholesale cost you quote	$0.20 listing; 6.5% transaction fee; U.S. payment processing 3% + $0.25	About 6% commission in most categories	Basic $39/month ($29 billed annually); U.S. online cards 2.9% + 30¢
Fulfillment	FBA, FBM, SFP, MCF	WFS or seller-fulfilled	Drop ship or CastleGate	Mostly seller-fulfilled	Platform logistics or approved warehouses	Your own, including MCF
Who can join	U.S. individuals or companies; Chinese and other foreign companies (Global Selling)	U.S. sellers and sellers from listed countries, China included, by application	U.S. and international suppliers, by application	Handmade, vintage and craft supply sellers, subject to payment-country support	Local stores need a U.S. individual or company; cross-border stores usually by invitation	Almost anyone; payment options vary by country
Sales tax on platform orders	Amazon collects and remits	Walmart collects and remits	Wayfair collects as retailer; you take a resale certificate	Etsy collects and remits	TikTok collects and remits	You collect (see yclcpa.com/stripetax)
1099-K	U.S. sellers above the threshold	Same	Generally none (wholesale payments)	Same	Same	Shopify Payments above the threshold
Payouts	Settlement cycle; DD+7 hold	Settlement cycle	Wholesale payment terms	Deposit schedule	Withdraw after settlement	Regular payouts from the payment processor
Detailed guide	This page and yclcpa.com/fba	yclcpa.com/walmart	yclcpa.com/wayfair	yclcpa.com/etsy	yclcpa.com/tiktok	yclcpa.com/shopify

• Selling on several platforms: use the same name, address and EIN everywhere, keep books by channel, and reconcile each platform's 1099-K separately; for inventory states, combine stock across all platforms and third-party warehouses. Temu's models (fully managed and local seller) are covered at yclcpa.com/temu.
• The opportunity for cross-border sellers: Amazon Global Selling offers Chinese sellers Chinese-language onboarding, training and service-provider networks, and one North America unified account covers the U.S., Canada, Mexico and Brazil. The upside is in building a brand: sellers with a U.S. trademark and Brand Registry get A+ content, brand ads and infringement tools, which is steadier than listing generic goods.
• The price is compliance: Amazon's reviews, account health rules and fees change more often than anyone's. Getting the entity, tax interview, payouts and brand right at the start saves a lot of suspensions, document requests and back taxes later.

Each month, download settlement reports and transaction detail from Seller Central and separate gross sales, refunds, referral fees, FBA fees, storage, surcharges, ads, reimbursements and reserves. Amazon deposits a net amount; the books should record gross revenue and list each fee, or the 1099-K and the return won't tie.

• Gross vs. net: revenue is what customers paid for the goods (excluding sales tax Amazon collected), with each fee listed separately. Booking only the bank deposit drops all the fees and leaves the 1099-K unreconciled.
• Reserves and cut-off: with DD+7 and settlement periods crossing month-end, assign revenue to months from orders and settlement reports, not deposit dates.
• Returns, reimbursements, chargebacks: customer refunds reduce revenue; Amazon reimbursements for lost or damaged inventory are income; chargebacks and A-to-z claims are tracked separately. Inventory and reimbursements are covered at yclcpa.com/fba.
• Ads and service providers: book ad invoices monthly; U.S. service providers, operators and designers paid $2,000 or more in a year get a 1099-NEC (the threshold starting in 2026), so collect a W-9 first (see yclcpa.com/1099nec).
• Multiple currencies: record settlements in dollars and deposits at the actual rate, with the exchange difference shown separately. Whether and how salaries and rent for a team in China are deductible by a U.S. company depends on the entity and the contracts.

Go through these 12 items before you register and most suspensions, document requests and back-tax problems never happen.

1. Entity: individual, U.S. LLC, C corporation or Chinese company; whether a foreign-owned LLC should elect C corporation status on Form 8832.
2. Formation and registered agent: state formation documents, a registered agent, a company address that receives mail (see yclcpa.com/llc and yclcpa.com/ra).
3. EIN: the IRS EIN letter (CP 575 or 147C) with a name and address that match the formation documents; apply by fax if the responsible party has no SSN.
4. ITIN (if needed): a foreign owner with a 1040-NR filing obligation applies with the return through a CAA (see yclcpa.com/itin).
5. Identity and address documents: original ID and a statement from the last 180 days, with matching addresses.
6. Payout account: a U.S. bank account in the company's name or an Amazon-approved payment service, held by the same entity.
7. Credit card: an internationally chargeable Visa, Mastercard or AMEX, not a virtual card.
8. Tax interview: choose W-9, W-8BEN or W-8BEN-E from Figure 3; match name and TIN exactly to IRS records; note the W-8 expiry date.
9. Trademark: file for a U.S. trademark before launch and prepare the Brand Registry materials.
10. Fulfillment and imports: FBA, FBM or SFP; who is importer of record and pays duties; which states the goods will sit in.
11. Margin check: model per-unit profit from Figure 4, including referral fees, FBA fees, surcharge, storage, ads, duties and returns.
12. Compliance calendar: federal returns and Form 5472 (April 15), state annual reports, off-Amazon sales tax, 1099-NEC (January 31), W-8 expiry, BE-13 (45 days after formation).

Example (hypothetical numbers, to show the method): Ms. Li is a Chinese tax resident with a trading company in Shenzhen that buys home goods from partner factories. In 2027 she plans to sell one $25 product through FBA on Amazon.com and expects 32,000 units a year.

Step 1: per-unit margin

At 32,000 units, sales are $800,000 and profit after these items is about $158,080. After software, service providers, trademark, bookkeeping and other costs, assumed at $38,080, pre-tax net profit is about $120,000.

Step 2: three entity routes side by side

• Related-party purchases: in route C, the U.S. company buys from the Shenzhen company and must be able to show the price is a market price; the customs value and the book cost of goods should agree, and the related-party amounts go on Form 5472 every year.
• State taxes are extra: inventory in Texas, California and other states brings its own income and franchise tax questions; the $25,200 in route C is federal only.
• The answer moves with the facts: lower profit, bringing all the money home, or reinvesting in the U.S. each lead to a different choice. The example shows the order: model first, choose the entity next, register the account last.

Start with whether you are a U.S. or foreign seller, whether you already have an entity and whether the account is open, then follow the matching path.

• Situation A: U.S. resident testing the waters. Open an Individual or Professional plan in your own name with a W-9; report on Schedule C; revisit an LLC or S corporation as volume grows, ideally before you commit to Professional.
• Situation B: U.S. resident building a long-term brand. Form the LLC, get the EIN and a company bank account, then register on Amazon in the company's name; file the U.S. trademark at the same time; compare an S corporation once profit is steady.
• Situation C: a Chinese company selling directly. Register a Professional North America unified account through Global Selling with a W-8BEN-E; if goods go to FBA, review whether U.S. inventory creates U.S. filing obligations, and settle who imports.
• Situation D: a Chinese owner selling through a U.S. LLC. Decide before registering whether the LLC elects corporate status on Form 8832, which decides W-8 vs. W-9 in the interview; file Form 5472 either way; if a Chinese factory supplies the goods, keep the purchase price and customs value consistent.
• Situation E: the account is open but the tax interview is wrong or records don't match. Settle the correct form and name first, fix IRS or state records if needed, then retake the interview; act quickly on Amazon's 30-day correction email. If past filings were missed, catch them up first.