Selling on SHEIN in the U.S.: supplier, SHEIN Marketplace or semi-managed, plus sales tax, 1099-K, Form 5472 and entity setup (2026)

As of November 2026 there are three common routes. You can be a SHEIN supplier: SHEIN orders, prices and sells to U.S. customers in its own name. You can open a SHEIN Marketplace store: you set prices and ship, and SHEIN is the platform. Or you can use the semi-managed (local-warehouse) model: you ship stock to a U.S. warehouse first and fulfill locally. A pure supplier has almost nothing to file in the U.S.; in the other two you sell goods in the U.S. yourself and need a U.S. tax plan.

SHEIN built its fast-fashion business on on-demand production: new styles start small and get reordered based on sales. SHEIN Group says a new SHEIN-branded item usually launches with only 100 to 200 pieces. In May 2023 SHEIN announced a global integrated marketplace and opened its U.S. site to third-party sellers that year. From 2024, industry reports described a semi-managed model for Chinese sellers that requires local stock and local delivery.

Description: each row is one model, showing who sets the price, who sells to the customer, where goods ship from, who imports, and what the seller generally files in the U.S.

Model	Who prices	Who sells to the customer	Ships from	Importer of record	Seller's U.S. filings
Supplier (including SHEIN-brand OEM / ODM)	SHEIN	SHEIN (its U.S. selling entity)	SHEIN warehouses, mostly direct from China	Arranged by SHEIN	A factory delivering in China with no U.S. staff or inventory generally has no U.S. income tax filing
Consignment-style "managed" model	Mainly the platform	Per the contract	Seller delivers to a platform warehouse in China	Arranged by the platform, per the contract	Same, generally none; read the contract
SHEIN Marketplace (U.S.)	Seller	Seller (SHEIN is the marketplace)	Seller's U.S. warehouse, a 3PL or SFS	Seller or the seller's forwarder	The entity's federal and state returns; Form 5472 if foreign-owned; 1099-K reconciliation
Semi-managed / local warehouse	Seller quotes; platform involvement in pricing reported differently	Per the contract and back-end rules	Seller's U.S. warehouse	Seller or forwarder (DDP)	Goods in the U.S.: ECI and state nexus; a foreign company may file 1120-F

• Names change: SHEIN's programs for Chinese sellers changed names, thresholds and categories several times from 2023 to 2026. This guide follows SHEIN's U.S. seller site (seller-us.shein.com) and its published agreement and policies, and flags what isn't public.
• The contract decides the tax: two sellers can both "keep stock in a U.S. warehouse" and get different tax results, depending on whether the contract says they sell to SHEIN or sell through SHEIN to the customer. Have a CPA read it before you sign.

A supplier factory makes goods to SHEIN's orders and delivers them at a supply price. SHEIN designs or selects the styles, sets retail prices and sells to U.S. customers in its own name; import and U.S. sales tax are on SHEIN's side. A Chinese factory that delivers in China and has no U.S. staff or inventory generally files no U.S. income tax return and needs no U.S. company.

• Small batches, fast reorders: SHEIN Group says new styles start with 100 to 200 pieces and get reordered if they sell. For the factory, orders are steady but margins are thin; payment terms, deductions and quality penalties sit in the supplier agreement.
• How goods reach the U.S.: most SHEIN goods ship direct from central warehouses in China. Marketplace Pulse reported on 2026-07-30 that over 90% of SHEIN's 2025 net revenue came from goods held in those Chinese warehouses, so the end of de minimis hit SHEIN's own costs first and then flowed into retail and supply prices.
• The supplier's taxes are in China: revenue from sales to SHEIN is domestic Chinese revenue (VAT, export rebates and so on are outside this guide). Suppliers don't fill in a U.S. W-9 or W-8 and generally won't receive a 1099.
• Selling on your own: many suppliers want to move from supplying to selling their own brand. That means Marketplace or semi-managed, and with it a U.S. entity, taxes and importer questions.

SHEIN's U.S. seller site says it is looking for "U.S. brands and sellers." Its registration guide lists formation documents, Form W-9 or W-8BEN-E, a trademark certificate or brand authorization letter (when selling another brand), and a bank confirmation letter. Before the first payout you pass KYC verification, which asks for the last 4 digits of an SSN. Applications are reviewed; signing up doesn't guarantee a store.

Description: each row is one rule, showing what SHEIN's site says and what isn't public and should be confirmed with your account manager.

Item	What SHEIN's site says	Not public / confirm in writing
Who can join	Recruits U.S. brands and sellers; applications are reviewed	Revenue thresholds: third-party sources disagree ($5,000,000 or $2,000,000 a year); SHEIN's site doesn't say
Registration documents	Formation documents; W-9 or W-8BEN-E; trademark certificate or brand authorization; bank confirmation letter	Whether a Chinese company can join the U.S. site directly; get a written answer
KYC	Merchant certification before the first payout; last 4 digits of an SSN	How a representative without an SSN is verified
Fees	No monthly, listing or advertising fees; fixed commission by category; incentives for new sellers	Exact rates aren't published; third-party sources mostly cite about 10%, with 0% for a new seller's first 30 days (3 months in early reports)
Shipping	Self-fulfillment: ship within 48 hours, deliver within 7 business days, upload tracking; or SFS	SFS is for select sellers, with separate storage and fulfillment fees
Late fee	$1.00 per order not delivered within 7 business days	—
Payouts	Settled every Monday, sent by a payment service provider via ACH in 1–3 business days; SHEIN never debits your bank account; commissions and return fees come out of the next payout	Settlement report format
Returns	30 days from delivery; intimates, jewelry, cosmetics, pet products, custom items and free gifts aren't returnable; UPS return labels by default, cost deducted from payouts	—
Sales tax	SHEIN collects and remits as a marketplace facilitator, at no charge	—

• Registration steps: SHEIN's guide lists four: complete category, business, contact, store, financial and tax information in Seller Hub; pass KYC; set a return address; apply for brand approval if you sell third-party brands.
• Listing: single or bulk upload in Seller Hub, a third-party connector such as Rithum or CEDCommerce, or direct API integration (no API fee).
• SHEIN's name for your records: SHEIN's FAQ says to set it up in your system as SHEIN US Services, LLC, with a Los Angeles address. Treat it as the platform counterparty in your books.
• The agreement: you accept the SHEIN Marketplace Services Agreement and policies (restricted products, IP, seller code of conduct, ranking). It includes an arbitration clause; contract and IP questions belong with a lawyer.

Semi-managed is SHEIN's program for Chinese sellers, reported to have launched first in the U.S. in May 2024: companies only, stock must sit in a local warehouse and ship locally with delivery in about 7 business days; early reports cited zero commission and no monthly fee. The big differences from Marketplace are pricing power and contract structure. Some reports say the seller quotes a supply price and SHEIN helps set the retail price; others say the seller prices freely. Your contract decides.

• Little is public: semi-managed rules live in SHEIN's China recruitment channel and seller back end, not on a public page. This guide relies on industry reports from 2024 to 2026; category scope (some say apparel only, others say no apparel), thresholds and fees have changed. Get the terms in writing from your account manager.
• The seller is often a Chinese company: reported document lists include a business license, W-8 tax form, payout account, brand documents and proof of overseas inventory. In other words, many sellers are Chinese companies holding stock in U.S. warehouses and selling in the U.S., which is the situation that most needs U.S. tax planning (see the section on foreign-owned LLCs and Chinese companies below).
• Three contract questions: who owns the goods when they sell in the U.S.; who is the importer of record; and whether SHEIN pays you for goods (a sale to SHEIN) or sales proceeds minus commission (a sale through SHEIN). The answers decide whether you're doing business in the U.S., which returns you file and whether you get a 1099-K.
• Why the platform pushes local stock: once de minimis ended, shipping parcel by parcel from China got expensive. Importing in bulk to a U.S. warehouse means duty on the bulk shipment's customs value and faster delivery; the cost is that the seller carries inventory, import and U.S. tax compliance.

Directly. SHEIN's model of small parcels shipped from China depended heavily on the $800 de minimis exemption. De minimis ended for mainland China and Hong Kong on 2025-05-02 and was suspended for all countries on 2025-08-29; SHEIN raised U.S. prices in late April 2025 and has leaned more on local warehouses and local sellers. For sellers with stock in U.S. warehouses, the importer of record pays duty, and the duty goes into inventory cost.

Description: each row is a tariff layer or rule with its status, what it does and what it means for SHEIN sellers. It matches the tariff timeline in our guides at yclcpa.com/fba and yclcpa.com/aigo.

Tariff or rule	Status	What it does	What it means for SHEIN sellers
$800 de minimis	Suspended: ended for China 2025-05-02, suspended for all countries 2025-08-29; OBBBA removes the legal basis from 2027-07-01	Parcels are entered and pay duty	Direct-mail costs rose; platforms shifted to U.S. warehouses
Normal (MFN) duty	Always applies	By HTS code; apparel and footwear rates are often high	Classify correctly; cost by code
Section 301 (China)	In effect	25% or 7.5% on most Chinese-origin goods	Goes into inventory cost
Section 301 (forced-labor action)	In effect (from 2026-07-24)	12.5% on Chinese-origin goods, on top of existing duties	Another layer of cost; be able to document the supply chain
IEEPA tariffs	Ended: the Supreme Court ruled on 2026-02-20 that IEEPA doesn't authorize tariffs	Refunds through CBP's CAPE function (from 2026-04-20)	Only the importer of record or its broker can claim
Section 122 temporary 10%	Expired (2026-02-24 to 2026-07-24)	150-day surcharge	Goods entered in that window carry it in cost

• SHEIN's prices: Reuters reported on 2025-04-16 that SHEIN told U.S. customers prices would change from 2025-04-25. Media measured later increases in different ways, so we don't quote a percentage.
• SHEIN's U.S. business: Marketplace Pulse reported on 2026-07-30 that SHEIN's U.S. revenue fell year over year in the first quarter of 2026. That pressure shows up in recruitment terms, fee incentives and delivery rules, so ask how long any incentive lasts and what the rate is afterward.
• Who imports matters most: if your own U.S. company is importer of record, it registers with CBP and needs a customs bond for formal entries (generally goods over $2,500); the duty records are yours, and only the importer can claim refunds such as IEEPA refunds. Under DDP the forwarder is the importer, and you need its duty breakdown to cost inventory correctly.
• Apparel and forced-labor screening: cotton goods are screened under the Uyghur Forced Labor Prevention Act (UFLPA) and can be detained. Supply-chain documentation is prepared with your broker and lawyer; we book the related costs and losses correctly.

SHEIN Marketplace skews toward young women shopping fashion and accessories, charges no monthly or advertising fees and uses fixed category commissions, but its delivery standard is tight (7 business days) and its policies are still changing fast. For tax, SHEIN, Amazon, Walmart, Etsy and TikTok Shop are all marketplace facilitators that collect sales tax and issue 1099-Ks; Wayfair runs a supplier model where Wayfair itself is the seller.

Description: each row is a platform, showing who sells to the customer, main fees, fulfillment, who can join, sales tax, 1099 and payouts.

Platform	Who sells to the customer	Main fees	Fulfillment	Who can join	Sales tax	1099	Payouts
SHEIN Marketplace	Seller	No monthly fee; fixed category commission (rate not published, third parties cite about 10%); $1 per order late past 7 business days	Self-fulfilled or SFS (by invitation)	Recruits U.S. brands and sellers; KYC asks for SSN last 4	SHEIN collects	1099-K	Settled every Monday, ACH in 1–3 business days
SHEIN supplier	SHEIN	Supply price; SHEIN sets retail	Delivered to SHEIN warehouses	Factories and suppliers	SHEIN collects as retailer	Generally none	Supplier agreement terms
Amazon	Seller	Professional plan $39.99/month + referral fees (15% in most categories)	FBA or self-fulfilled	U.S. and foreign sellers (including China), with identity verification	Amazon collects	1099-K	Per settlement cycle
Walmart Marketplace	Seller	No monthly fee; referral fees 6%–20% (15% in most categories)	WFS or self-fulfilled	Approval required; U.S. businesses and businesses from listed countries (including China)	Walmart collects	1099-K	Per settlement cycle
Wayfair	Wayfair (the supplier sells to Wayfair)	Wholesale price; Wayfair sets retail	Drop ship or CastleGate	U.S. and international suppliers	Wayfair collects as retailer	Generally none (wholesale proceeds)	Supplier agreement terms
Etsy	Seller	$0.20 listing; 6.5% transaction fee; U.S. payment processing 3% + $0.25	Self-fulfilled	Handmade, vintage, original design and craft-supply sellers; no new shops from mainland China	Etsy collects	1099-K	Per Etsy Payments settings
TikTok Shop	Seller	About 6% in most categories (May 2026 fee table)	Platform logistics (FBT) or approved warehouses	Local stores need a U.S. person or company; cross-border mostly by invitation	TikTok collects	1099-K	Per Seller Center

• Platform details: Amazon at yclcpa.com/amazon and yclcpa.com/fba, Walmart at yclcpa.com/walmart, Wayfair at yclcpa.com/wayfair, Etsy at yclcpa.com/etsy, TikTok Shop at yclcpa.com/tiktok, Temu (fully managed, semi-managed and local sellers) at yclcpa.com/temu, and your own store at yclcpa.com/shopify.
• Selling on several platforms: one U.S. company can run several marketplaces with one set of books split by channel. Each platform issues its own 1099-K and stores inventory in its own states, so nexus has to be looked at together.
• Who SHEIN fits: apparel, shoes, bags, accessories, beauty and small home goods aimed at young women, from brands and sellers who can ship from a U.S. location within 48 hours. Heavy, bulky or installed goods may fit Wayfair or Walmart better.

SHEIN's U.S. tax policy says SHEIN is a marketplace facilitator, is registered in every state and locality with a marketplace facilitator law, and calculates, collects and remits sales tax on orders shipped there, wherever the seller is located, at no extra charge. You don't collect sales tax on SHEIN orders. Off-platform sales, income and franchise taxes in states where your inventory sits, and gross receipts taxes remain yours.

• What SHEIN doesn't cover: the policy says SHEIN is responsible only for taxes under marketplace facilitator laws; it doesn't file income or gross receipts taxes for you, or sales tax on sales you make to U.S. buyers through other channels.
• You may still have to report: the policy also warns that you may have reporting obligations even when SHEIN collects. Sellers already registered in a state sometimes have to list marketplace sales on their returns; follow each state's form.
• Double payments: if you also remitted tax on SHEIN orders, you claim the refund from the state; SHEIN doesn't.
• Thresholds count all channels: most states' economic nexus threshold is $100,000 a year (some add 200 transactions); California, Texas and New York use $500,000. Some states count marketplace and exempt sales toward the threshold. Add your own store and wholesale in (North Carolina at yclcpa.com/salestax; your own store at yclcpa.com/stripetax).
• Inventory creates physical presence: stock in a state's warehouse (including SFS and 3PLs) gives you physical presence there, which can bring income or franchise tax; P.L. 86-272 generally doesn't protect sellers with inventory in the state and doesn't apply to receipts-based taxes like the Texas franchise tax or Washington B&O (details at yclcpa.com/fba).

Selling apparel: how do state clothing exemptions work?

On SHEIN orders, SHEIN's tax system applies the clothing exemptions. On your own store, wholesale or in-person sales, you apply them. The main ones: New York's 4% state tax doesn't apply to clothing and footwear under $110 an item, and local tax depends on the county or city; Massachusetts exempts the first $175 of each item and taxes only the excess; New Jersey, Pennsylvania and Minnesota generally exempt clothing but tax fur, accessories and sport or protective gear.

Description: each row is a state, showing whether ordinary clothing is exempt, any per-item cap and common taxable exceptions.

State	Ordinary clothing	Per-item cap	Common taxable exceptions	Authority
New York	Exempt from the 4% state tax; local tax depends on the locality	Under $110	Jewelry, watches and similar accessories; costumes and rented formal wear; protective gear and sport pads; skates	NY Tax Bulletin ST-122; Publication 718-C (local elections)
New Jersey	Exempt	None	Fur clothing (plus a separate 6% fur clothing retail gross receipts tax); accessories (handbags, jewelry, wallets, wigs); sport and recreational equipment; protective equipment unless needed for daily work	N.J.S.A. 54:32B-8.4; NJ bulletin S&U-4 (rev. 07/22)
Pennsylvania	Everyday clothing exempt	None	Formal day or evening wear, fur, sporting goods and sports clothing, accessories	PA Department of Revenue REV-717 (02-26)
Minnesota	Exempt	None	Fur clothing, accessories, sports and recreational equipment, protective equipment	MN Department of Revenue Fact Sheet 105
Massachusetts	Exempt	First $175 of each item; tax on the excess	Clothing and footwear designed for athletic or protective use and not normally worn otherwise	M.G.L. c. 64H §6(k)

• Per item, not per order: New York's $110 and Massachusetts' $175 apply to each item (or pair), not the order. A $200 coat sold into Massachusetts is taxed on $25.
• Accessories are the usual mistake: jewelry, bags, hair accessories and hats, big sellers on SHEIN, are mostly not clothing in these states and are taxable. Put an item in the wrong category and the tax SHEIN collects is wrong, and complaints and refunds land on you.
• Other states: Rhode Island, Vermont and some others also exempt clothing fully or partly; we didn't check each one here, so look them up for your own store's orders.

U.S. companies, U.S. individuals and multi-member LLCs give a W-9; foreign companies give a W-8BEN-E. A foreign-owned single-member LLC is disregarded for tax, and the W-9 instructions say the foreign owner provides a W-8 (usually a W-8ECI when there's U.S. business income) rather than a W-9 under the LLC's EIN. If payouts exceed $20,000 and 200 transactions for the year, the platform or its payment service provider issues a 1099-K showing gross amounts, which you reconcile to the settlement details.

• Names and TINs must match: the name and EIN on the W-9 must match IRS records exactly, and match your formation documents, bank account and KYC; mismatches trigger B notices and, if not fixed, 24% backup withholding.
• Foreign-owned single-member LLCs: SHEIN's registration guide only says "W-9 or W-8BEN-E." How a foreign-owned single-member LLC fills this in depends on the owner; if the back-end choices don't fit, ask your account manager before ticking a box (which form to use: yclcpa.com/w8ben). This is one reason many sellers use a C corporation, or have the LLC elect corporate status on Form 8832.
• Reconciling the 1099-K: it shows customer payments gross, including shipping, before commissions, refunds, return fees and $1 late fees; your payouts are net. List the differences from Seller Hub's settlement details (yclcpa.com/1099k). States with lower thresholds (Massachusetts, Maryland, Virginia and others at $600) may produce a state 1099-K.
• Suppliers get no 1099-K: supplier revenue is payment for goods, not third-party settlement, so suppliers generally don't receive one.

It depends on who you are and where the money ends up. A U.S. resident usually starts with a single-member LLC on Schedule C and considers an S election once profit is steady. A foreign individual's single-member LLC files pro forma 1120 + 5472 by default, plus a 1040-NR if there's ECI, and many elect C corporation status on Form 8832. A Chinese factory selling in the U.S. often uses a U.S. subsidiary as importer and seller. Multi-platform sellers use one company and one set of books.

Description: each row is a type of seller, showing the usual entity, the tax form given to SHEIN, annual filings and points to watch.

Seller	Usual entity	Tax form to SHEIN	Annual filings	Watch out for
U.S. resident (citizen, green card holder, resident for tax)	Single-member LLC; S election once profit is steady	W-9 (LLC's EIN or your SSN, per the W-9 instructions)	Schedule C and self-employment tax; with an S election, Form 1120-S and a reasonable salary	S corporations: yclcpa.com/scorp; California LLCs pay at least $800 a year
Foreign individual's single-member LLC	Wyoming or Delaware LLC, or a C corporation election on Form 8832	Default: the owner's W-8; after a C election: W-9	Default: pro forma 1120 + 5472, plus 1040-NR with ECI; C corporation: 1120 + 5472	After an 8832 election, generally no change for 60 months; dividends withheld at 30%, generally 10% under the U.S.–China treaty
Chinese company + U.S. subsidiary	U.S. C corporation owned by the Chinese company	W-9	1120 + 5472; state returns; BE-13 when formed	Related-party pricing (§482, §1059A): yclcpa.com/subsidiary
Chinese company selling directly (e.g., semi-managed)	No U.S. company	W-8BEN-E	1120-F with ECI; a company claiming no permanent establishment under the treaty generally still files 1120-F with Form 8833	U.S. inventory, importer and state nexus need a review first
Multi-platform seller (SHEIN + Amazon + own store)	One U.S. company	Same information on every platform	One federal return; every platform's 1099-K reconciled together	Look at inventory states and own-store sales tax together

• No S corporation for foreign owners: foreign individuals and foreign companies can't be S corporation shareholders (C corporations: yclcpa.com/ccorp).
• State of formation: Wyoming and Delaware are common; an office or staff elsewhere usually means foreign qualification there; inventory or "doing business" in California means at least the $800 minimum franchise tax; inventory in Texas brings the Texas franchise tax (no tax due below $2,650,000 for 2026 and 2027 reports, but an information report is still required). State comparison at yclcpa.com/llc; entity choice at yclcpa.com/entity.
• BE-13: a foreign person who sets up a U.S. company and acquires 10% or more of the voting interest reports on BE-13 to the Bureau of Economic Analysis within 45 days.

A single-member LLC owned by a Chinese individual is disregarded by default: it files pro forma 1120 + Form 5472 every year, with a $25,000 starting penalty per missed form. Selling to U.S. customers from a U.S. warehouse usually produces income effectively connected with a U.S. business (ECI), so the owner files a 1040-NR. Electing corporate status on Form 8832 turns the LLC into a U.S. C corporation: it files Form 1120, pays 21% federal tax and can give a W-9. A Chinese company selling from a U.S. warehouse without a U.S. company has to look at whether it's doing business in the U.S. and whether it has a permanent establishment under the treaty.

The full analysis (W-9 versus W-8, when Form 8832 pays off, how to pick the effective date) is in our Walmart guide; here are the key points, consistent with that guide (yclcpa.com/walmart):

• Default (no election): the LLC files no income tax return of its own but files pro forma 1120 + 5472 (yclcpa.com/5472) by fax or mail, not e-file; an owner with ECI files a 1040-NR and may need an ITIN first (yclcpa.com/itin).
• C corporation (Form 8832): the effective date can be up to 75 days before filing and up to 12 months after; after a change in classification you generally can't change again for 60 months (Treas. Reg. §301.7701-3(c)(1)(iv)), though a new entity's initial election doesn't count. A corporation 25% or more foreign-owned still files Form 5472 with its 1120.
• Dividends: after-tax profit paid to a foreign shareholder is subject to 30% withholding, generally 10% for a Chinese tax resident under the U.S.–China treaty with a valid W-8BEN or W-8BEN-E; the payer files Form 1042-S.
• A Chinese company selling from a U.S. warehouse (common in semi-managed): holding inventory in the U.S. and selling regularly is generally a U.S. trade or business. Under the U.S.–China treaty, facilities used solely for storage, display or delivery of goods aren't a permanent establishment, but whether there's a permanent establishment depends on all the facts (U.S. employees, agents who habitually sign contracts and so on). Claiming treaty benefits generally means filing Form 1120-F with Form 8833, not filing nothing.
• Pure SHEIN suppliers aren't in this group: a factory that only sells to SHEIN in China and has no U.S. inventory or staff generally doesn't face these issues.

A common structure: the Chinese factory manufactures, and a U.S. subsidiary imports, holds inventory and sells on SHEIN Marketplace. The subsidiary's purchase price from the parent must be arm's length, and the IRS can adjust it under IRC §482; the same price is the customs value, so duty follows it. Price too low and U.S. profit looks inflated; price too high and you overpay duty and invite IRS questions.

• Keep both sides consistent: under §1059A, inventory bought from a related party generally can't be costed above its customs value. You can't declare a low price at customs and book a high one.
• Keep documents: the purchase agreement, pricing support (cost plus, comparable prices), invoices and entry summaries, ready when the return is filed; large transfer pricing adjustments can carry 20% or 40% penalties (yclcpa.com/subsidiary).
• Form 5472 reports the transactions: purchases, loans and service fees between the subsidiary and its parent are each reported on Form 5472.
• Factories moving on from supplying: a factory that keeps supplying SHEIN while its U.S. subsidiary sells its own brand on SHEIN Marketplace should keep the two lines' pricing and margins separate, so the U.S. subsidiary's profit holds up.

Download settlement details and order reports from Seller Hub monthly. Book sales gross, and record commissions, return shipping, $1 late fees and SFS storage and fulfillment fees separately as expenses; refunds reduce revenue, and returned goods go back into inventory. Inventory cost includes purchase price, inbound freight, duty and customs fees and becomes cost of goods sold when the item sells. Sales tax SHEIN collects isn't your revenue.

• Settlements are net: SHEIN settles every Monday and deducts commissions and return fees, so the bank deposit is net. Booking only deposits leaves the 1099-K unreconciled.
• Sort deductions by type: late fees, return labels and SFS fees are expenses; refunds reduce revenue; disputed deductions sit in a separate account until resolved.
• Inventory and duty: each shipment's entry summary, duty payment and forwarder invoice support inventory cost; under DDP, get the duty breakdown from the forwarder.
• One set of books for several platforms: if SHEIN, Amazon, TikTok and your own store share one company, split by channel so profit is clear and nothing is double-counted or missed at tax time.

Settle the model and entity first, then prepare documents, then fix logistics and the importer. Work through this list in order.

Description: each row is a preparation step, showing what to do, why, and who handles it.

Step	What to do	Why	Who
1	Confirm which route is open to you (Marketplace, semi-managed or supplying) and get written terms: commission, incentive period, categories, delivery rules	Terms change; verbal promises don't count	SHEIN recruitment team
2	Choose the entity: U.S. LLC, C corporation or a Chinese company selling directly; for foreign owners, review Form 8832 and ITIN	Decides W-9 or W-8 and annual filings	YCL
3	Form the company, get an EIN and open a U.S. bank account that accepts ACH	Registration asks for formation documents and a bank letter	Secretary of state; IRS; bank
4	Complete the W-9 or W-8 with name and TIN matching IRS records; prepare KYC	Mismatches hold payouts or trigger 24% withholding	YCL checks
5	Trademark or brand authorization letter	Third-party brands need approval; a trademark lawyer files trademarks	Trademark lawyer
6	Pick the U.S. warehouse (own, 3PL or SFS) and the importer of record	48-hour shipping, 7-business-day delivery; duty and inventory cost	Warehouse; customs broker
7	Review state obligations from inventory and off-platform sales tax	Physical presence has no sales threshold	YCL
8	Set up books: settlements, inventory and duty records monthly	1099-K reconciliation and annual returns	YCL
9	Foreign-owned companies: BE-13 within 45 days; returns and Form 5472 by April 15 of the following year	Each missed Form 5472 starts at $25,000	YCL

Example (hypothetical numbers, to show the method): Mr. Li owns an apparel factory in Guangdong that has supplied SHEIN for years. In 2026 he wants to sell his own womenswear brand on SHEIN Marketplace. He forms B Inc. in Delaware (a U.S. C corporation, 100% owned by the Guangdong factory), rents space in a New Jersey 3PL, and makes B Inc. the importer of record.

• Transfer pricing: B Inc.'s purchase price from the factory is set at arm's length (the factory's supply price to SHEIN can be one reference point), and the customs value matches the booked cost (§482, §1059A).
• Filings: B Inc. files Form 1120 with Form 5472 for its purchases from the parent and BE-13 within 45 days of formation; inventory in New Jersey means a New Jersey corporation business tax (CBT) return; SHEIN collects sales tax on its orders, and clothing is generally exempt in New Jersey.
• Without a U.S. company: if the Guangdong factory instead joins semi-managed directly with a W-8BEN-E and keeps the same stock in New Jersey, it has to assess whether it's doing business in the U.S. and whether to file 1120-F with Form 8833, plus New Jersey tax. The formation cost saved can be far smaller than the cost of fixing it later.

Run the numbers: reporting the $1,200,000 gross as income without reconciling overstates income by $229,500 (refunds, commissions and fees). Booking only bank deposits and then deducting commissions again understates it. Reconcile line by line to the settlement details and the 1099-K ties out.

Start with how you sell now and whether you have a U.S. entity, then where you want to go. Common situations:

• A: You supply SHEIN and want to keep doing that. Generally nothing to file in the U.S.; read the supply agreement's deduction and quality terms, and handle Chinese taxes under Chinese rules.
• B: You supply SHEIN and want your own U.S. brand. Decide between a U.S. subsidiary (importer and seller) and joining semi-managed with the Chinese company; set related-party pricing, the importer and the U.S. warehouse before you apply.
• C: A U.S. apparel or accessories brand adding SHEIN. Apply with your existing company, keeping the W-9, bank account and documents consistent; SHEIN collects sales tax on its orders, and you apply clothing exemptions on your own store and wholesale.
• D: A Chinese owner's LLC already selling on Amazon or TikTok. Check that past pro forma 1120 + 5472 and 1040-NR filings are complete, then decide whether to elect C corporation status on Form 8832 and align the tax information on every platform.
• E: Already selling on SHEIN and an IRS or state letter arrives. Submit it at yclcpa.com/notice; we check deadlines and amounts, request relief where it's available, and put future filings on a calendar.