Selling at Target: joining Target Plus, becoming a Target vendor, cross-border options, platform comparison, and the tax and company questions (2026)

There are two main routes: be invited to Target Plus and sell on Target.com as a third-party seller who sets prices, ships orders and pays Target a referral fee; or become a Target vendor (supplier), where Target buys your goods on purchase orders and sells them in stores or online. The first is a marketplace seller, the second a wholesaler to a retailer, and tax, bookkeeping and compliance differ accordingly.

Target Plus launched in 2019. Target's June 2024 press release counted more than 1,200 partners and over 2 million products. In July 2026 Target added a new group of brands including Clarks, Forever 21, JanSport, Serta and Hisense, and said Target Plus brands make up more than half of its K-beauty assortment. The vendor route is much older; most items in Target stores and on Target.com, including Target's owned brands, arrive that way.

Description: each row is one aspect, with the Target Plus third-party seller on the left and the Target vendor on the right. Items Target doesn't publish are marked "not public."

Aspect	Target Plus seller	Target vendor
How you get in	By invitation; from 2024, U.S. Shopify merchants can apply through Marketplace Connect	Submit the Supplier Intake Form; Target decides whether to reach out based on its needs; then set up in Partners Online
Who sells to the shopper	You (the product page shows the partner as seller and shipper)	Target
Who sets the retail price	You	Target
Shipping	You, your warehouse or a 3PL ship to the shopper	Per Target's purchase orders and routing guide, to Target DCs or stores
How Target earns	Referral fee on each sale (rate not public)	The margin between cost and retail, plus contractual allowances and fees
Payment	Weekly, every Tuesday, to your Stripe account	Per the vendor agreement's terms (not public), often net of deductions
Sales tax	Target collects in marketplace facilitator states	Wholesale; collect Target's resale or exemption certificate
1099	1099-K over $20,000 and 200 transactions	Payments for merchandise generally not reported
Performance and compliance	Order Defect Rate (ODR), item content review	EDI, packaging and labeling, on-time delivery, factory social-compliance audits, product testing and insurance (per the agreement)

Target Plus is invite-only. Target says each partner is selected and vetted for quality, value and fit with its guests, but it has not published a full list of requirements or its referral fees. What is public: from June 2024, U.S. Shopify merchants can apply through Marketplace Connect, and Target's partner training materials describe item review, the Order Defect Rate and weekly payouts.

We sorted what can be found into three levels of reliability. Before you commit, the invitation and the agreement decide:

Description: each row is one piece of information, with its content, source and reliability.

Item	Content	Source	Reliability
Model	Invite-only, curated third-party marketplace launched in 2019	Target press release (2024-06); Target news (2026-07-01)	Official
How to apply	U.S. Shopify merchants can apply via Marketplace Connect; other application paths not described publicly	Target press release (2024-06-24)	Official
Item setup	Submit about 100 representative items for review by Target's item team, fix per feedback, then list the full assortment; categories with consistently complete data move to auto-approval	Target Plus partner training materials	Official (produced around 2020)
Performance	Measured by Order Defect Rate (ODR); delivery time and inventory management feed into it	Same	Official
Payouts	Set up a Stripe account first; payouts reach your bank every Tuesday; referral fees, shipping and returns affect the amount	Same	Official
Tax settings	Partners configure their tax settings in the portal	Same	Official
Entity and bank	U.S. business and U.S. bank account; price parity with other online channels	Industry vendor article (2026)	Not confirmed by Target
Referral fee	About 5%–15%, no monthly fee	Industry vendor article (2026)	Not confirmed by Target
Shipping times	Ship within 24 hours, deliver within 5 days	Industry vendor article (2026)	Not confirmed by Target

• How invitations happen: Target describes a curation team that picks brands bringing something new to guests and matching its style and price point. The common industry advice is to show steady sales and reviews on your own site, Amazon or Walmart, have complete brand and product content, and connect through Target's partnership outreach or an approved channel partner. That is experience, not a Target rule.
• International sellers: Target hasn't said publicly whether Chinese or other non-U.S. companies can join Target Plus directly. The 2024 release mentions only U.S. Shopify merchants, and the Target Accelerators FAQ says international brand owners aren't currently supported. In practice, overseas brands first set up a U.S. company, a U.S. bank account and U.S. fulfillment.
• Returns: shoppers return Target Plus items under the rules on Target.com's help pages (generally with a free mail-back label), with the return window shown on the product page; refunds come out of your payouts.
• Advertising: Target's retail media business is Roundel, and brands can advertise on Target.com. Who can buy and how it's billed depend on Roundel and your agreement; ad spend is a current expense.
• YCL is not a Target partner or agency and can't get you an invitation. Our part is the company and tax preparation before and after onboarding.

A brand with no existing relationship starts with Target's Supplier Intake Form; Target reaches out if your product fits its needs, and submitting is no guarantee, though you can resubmit as your business hits new milestones. Once selected, you set up in Partners Online, Target's supplier system, connect EDI, sign the vendor agreements, and meet Target's standards for packaging, labeling, delivery and factory audits.

• EDI and logistics: purchase orders, advance ship notices (ASN) and invoices run on EDI, and deliveries follow Target's routing guide and appointment windows. The details sit behind the Partners Online login.
• Conduct and factory audits: Target publishes its Standards of Vendor Engagement and Business Partner Code of Conduct, which bar forced, trafficked and prison labor, including in raw materials. Factories making Target owned-brand products complete a Target-approved social-compliance audit on a regular basis, Target may audit without notice, and a partner with three strikes is no longer eligible to do business with Target.
• Product testing, insurance and contracts: safety testing, liability insurance limits, recalls and indemnities depend on the category and the agreement; industry guides commonly mention naming Target as an additional insured. These are legal and contract matters for your attorney; we book the related costs, insurance and reserves correctly.
• Payment terms and deductions: Target doesn't publish vendor payment terms. Retailers commonly take compliance chargebacks for late deliveries, ASN or label errors and non-compliant packaging, plus damage allowances, markdown support, promotional and ad fees, often deducted straight from payments. Bookkeeping is covered below.
• Startup costs: EDI software, GS1 barcodes, testing, insurance, audits and samples cost money before the first PO. Their tax treatment differs (current expense, inventory cost or startup cost), so record them separately.

The draw is Target's shopper base and brand image: nearly 2,000 stores and a Target.com audience that pays for design and quality. Target Plus has fewer, vetted sellers, so price wars are milder than on open marketplaces. For cross-border sellers, the openings are a U.S. company that builds a brand and pursues Target Plus, supplying a U.S. partner already on Target Plus, or manufacturing for Target vendors and owned brands.

• Moving a brand up-market: for a Chinese brand already selling well on Amazon or TikTok Shop, Target Plus is a curated channel that supports pricing and possibly stores later; in 2024 Target said some Target Plus brands may land in select stores.
• U.S. company plus U.S. warehouse: Target Plus sellers ship their own orders, so you need U.S. inventory and fulfillment (your own warehouse or a 3PL). U.S. inventory brings state tax nexus, and a foreign owner has U.S. income tax questions (below).
• Supply chain: Target owned brands and many vendors manufacture overseas, and those factories pass Target-approved social-compliance audits. A factory taking orders usually contracts with a Target vendor or Target's sourcing organization, whose contract and compliance terms govern.
• What changed in 2026: in July 2026 Target said Target Plus items will show up more clearly in AI-powered search and other digital channels through work with OpenAI, Google and Microsoft, and it is adding larger electronics and sporting goods.

The big differences are the gate and who the seller is. Amazon, Walmart and Etsy take applications or sign-ups; Target Plus takes invitations; Wayfair and the Target vendor route are, at heart, wholesale to a retailer. Marketplace sellers deal with 1099-Ks and facilitator-collected sales tax; wholesalers deal with resale certificates and deductions.

Description: each row is a platform or route, showing how you get in, who sells to the shopper, shipping, main fees, sales tax, 1099-K and whether a Chinese company can open directly.

Platform	How you get in	Seller to shopper	Shipping	Main fees	Sales tax	1099-K	Chinese company directly
Target Plus	Invitation	You	You ship	Referral fee, rate not public	Target collects	Yes, at the threshold	Not stated; in practice via a U.S. company
Target vendor	Intake form + Target's choice	Target	To Target DCs or stores per PO	Wholesale margin, deductions, testing, insurance	Resale certificate	Generally no	Depends on Target's needs; overseas factories usually manufacture for vendors
Walmart Marketplace	Application + review	You	Self-ship or WFS	Referral fee mostly 6%–15%, no monthly fee	Walmart collects	Yes	Yes, Walmart opened to China-based sellers (see yclcpa.com/walmart)
Amazon	Registration + identity check	You	FBA or self-ship	Professional $39.99/month + referral fee (mostly 8%–15%) + FBA fees	Amazon collects	Yes	Yes (see yclcpa.com/fba)
Wayfair	Supplier application (Partner Home)	Wayfair	Dropship or CastleGate	Wholesale cost; platform terms per agreement	Wayfair collects as retailer	Generally no	See yclcpa.com/wayfair
Etsy	Open shop; handmade, vintage, craft supplies	You	You ship	$0.20 listing, 6.5% transaction fee, U.S. processing 3% + $0.25	Etsy collects	Yes	Yes, if items meet the handmade rules
TikTok Shop	Local store needs a U.S. company or individual	You	Platform logistics or approved warehouses	Referral fee about 6% in most categories	TikTok collects	Yes	Cross-border store by invitation (see yclcpa.com/tiktok)

• Overstock and Houzz: home-goods sellers often weigh these too; see yclcpa.com/overstock and yclcpa.com/houzz.
• Choosing: if you have a brand, inventory and steady logistics, get Amazon and Walmart running smoothly and prepare what Target Plus will ask for; factories and wholesale specialists look at the Target vendor route and Wayfair; handmade and custom makers look at Etsy; short-video sellers look at TikTok Shop. Whichever route, the U.S. company and tax foundation is the same.

On Target Plus orders, Target calculates, collects and remits sales tax as the marketplace facilitator in states with marketplace laws; you keep item tax codes current and update nexus changes. As a vendor you sell to Target for resale, so you collect Target's resale or exemption certificate instead of tax; without one, some states treat the sale as taxable.

• Marketplace laws: all 45 sales-tax states and D.C. have marketplace facilitator rules. Target's partner tax-settings material also says Target calculates and remits in marketplace facilitator states, and handles other cases according to your portal settings.
• Collecting resale certificates: state by state, in each state's format; North Carolina uses Form E-595E, and many states accept the Multistate Tax Commission uniform certificate or the Streamlined Sales Tax certificate. Keep them on file for audits (North Carolina rules at yclcpa.com/salestax).
• Drop shipments: if a retailer has you ship straight to its customers, it is a three-party sale, and states differ on who collects and what certificate is needed. Confirm before you start.
• Off-platform sales are yours: your own site, other wholesale customers and in-person sales follow each state's thresholds and nexus rules (your own site: yclcpa.com/stripetax).
• Nexus from inventory: Target Plus inventory in a state's warehouse gives you physical presence there; state income tax, franchise tax and gross-receipts taxes such as Washington B&O are never covered by the marketplace (full treatment at yclcpa.com/fba).

Target Plus pays out through Stripe, and over $20,000 and 200 transactions a year you receive a 1099-K (issued by Target or its payment provider; go by what you actually receive) showing gross amounts that must be reconciled to settlement reports. As a vendor, Target pays you for goods, and payments for merchandise generally aren't reported on a 1099; vendor setup generally asks for a W-9 (a foreign company gives a W-8). The name and TIN must match IRS records, or payments may face 24% backup withholding.

• W-9: U.S. individuals, U.S. corporations, multi-member LLCs and LLCs that elected corporate treatment give a W-9.
• Foreign-owned single-member LLC: it is disregarded for tax. The W-9 instructions say a disregarded entity with a foreign owner gives the owner's W-8 (generally W-8ECI with U.S. business income), not a W-9 under the LLC's EIN. If Stripe or the supplier system offers only a W-9, ask before you check a box (form-by-form guide at yclcpa.com/w8ben).
• 1099-K reconciliation: the 1099-K is gross shopper payments, possibly including shipping, before referral fees and refunds; payouts are net. List the differences from settlement reports (see yclcpa.com/1099k).
• Vendor reconciliation: with no 1099, your own invoices, Target's remittance detail and deduction detail are what tie out. The remittance detail is your key working paper.

A single-member LLC owned by one Chinese individual is disregarded by default: it files pro forma 1120 + Form 5472 every year, at $25,000 per missed form. With inventory in U.S. warehouses and sales to U.S. shoppers, the income is generally effectively connected (ECI), so the owner files Form 1040-NR (a foreign corporate owner files 1120-F). If the LLC elects corporate treatment on Form 8832, it becomes a U.S. C corporation: Form 1120, 21% federal tax, and a W-9; after that change it generally can't change again for 60 months.

The full analysis (W-9 or W-8, when Form 8832 pays off, choosing the effective date) is in our Walmart guide, and the conclusions here match it (see yclcpa.com/walmart):

• Default (no election): the LLC files no income tax return of its own, only pro forma 1120 + 5472 (see yclcpa.com/5472); an owner with ECI files 1040-NR and may need an ITIN first (see yclcpa.com/itin). Whether there is a permanent establishment under the U.S.–China treaty depends on the facts.
• C corporation (Form 8832): the effective date can be up to 75 days before filing and up to 12 months after; once classification changes, a new change is generally barred for 60 months (Treas. Reg. §301.7701-3(c)(1)(iv)), though an initial election by a new entity isn't limited. A corporation 25% or more foreign-owned still files 5472 with its 1120.
• Dividends: after-tax profit paid to a foreign shareholder is withheld at 30%, generally reduced to 10% under the U.S.–China treaty with a valid W-8BEN or W-8BEN-E, and the payer files Form 1042-S.
• No S corporation: foreign individuals and companies can't be S corporation shareholders (S corporations at yclcpa.com/scorp, C corporations at yclcpa.com/ccorp).
• On the vendor route: a Chinese factory that sells to Target's sourcing organization FOB a Chinese port, with no people or inventory in the U.S., generally isn't engaged in a U.S. trade or business; with a U.S. company and U.S. inventory, the U.S. company files its own returns. Contracts, delivery terms and staffing decide, case by case.

A common structure: the Chinese factory makes the goods, and the U.S. subsidiary imports them, holds inventory, and sells on Target Plus or wholesale to Target. 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 that duties follow. Price too low and U.S. profit is overstated; too high and you overpay duty and invite IRS questions.

• Keep both sides consistent: under IRC §1059A, the cost basis of goods imported from a related party generally can't exceed their customs value. You can't declare a low value at the border and book a high cost.
• Keep documents: the purchase agreement, pricing basis (cost-plus or comparable prices), invoices and entries should exist when you file; large transfer-pricing adjustments can bring 20% or 40% penalties (see yclcpa.com/subsidiary).
• Report on Form 5472: purchases, loans and service fees between subsidiary and parent are each reported on Form 5472.
• Who is importer of record: if the subsidiary is the IOR, duties, filings and any future refunds are in its name; if a forwarder acts as importer under DDP, get the duty documents back so inventory cost is right (tariffs and the $800 de minimis suspension at yclcpa.com/fba).
• As of November 2026: Section 301 tariffs on Chinese-origin goods remain, and the $800 de minimis exemption has been suspended for all countries since August 29, 2025. Duties go into inventory cost and become cost of goods sold when the goods sell.

As a vendor, what Target pays is often the invoice total minus deductions. The right approach: record sales at the gross invoice, record each deduction by its nature (allowances and promotions reduce revenue; compliance fines and ad fees are expenses), and hold disputed items in a separate receivable until resolved. Booking only cash received hides what was taken and leaves you nothing to dispute.

Description: each row is a common retailer deduction, with typical causes, where it goes in the books, the tax effect and the documents to keep.

Deduction	Typical cause	Where it goes	Tax effect	Documents
Compliance chargeback	Late delivery, ASN or label errors, packaging issues	Expense (vendor compliance chargebacks)	Deductible in the year; don't net it away and lose it	Chargeback notice, PO and shipment records
Damage or defective allowance	Contract percentage or actual damage	Sales allowance (contra-revenue)	Reduces sales	Contract terms, deduction detail
Markdown or promotional money	Retailer price cuts or promotions shared by the vendor	Sales allowance	Reduces sales	Promotion agreement, retailer's calculation
Advertising (e.g., Roundel)	Deducted from payments per agreement	Advertising expense	Deductible in the year	Ad agreement, campaign reports
Returns and shortages	Returned goods, receiving variances	Reduces revenue; returned goods back to inventory	Returned goods into inventory; unsellable goods written off under the rules	Return authorizations, receiving variance reports
Disputed deduction	You believe it's wrong and are disputing	Receivable (pending deductions)	Collected if you win; dealt with in the year it's settled	Dispute records, correspondence

• Reconcile every payment: match Target's remittance detail to your invoices one by one; every difference should have a deduction code and a reason.
• Disputes have deadlines: retailers set a window to dispute deductions, after which the money is gone; your vendor agreement sets the window.
• Accrual method: wholesalers with inventory usually use the accrual method (or may use cash under the gross-receipts test, after review). The year a deduction is recognized affects the year income is reported.
• Target Plus sellers too: payouts are net of referral fees, shipping and refunds; book sales gross and fees separately so the 1099-K reconciles.

Beyond sales tax, check three things: annual reports and franchise taxes in your state of formation (Delaware corporations pay franchise tax; LLCs pay $300 a year); income or franchise tax in states where you have inventory, employees or receipts over thresholds (Texas has a $2,650,000 no-tax-due threshold for 2026 and 2027 reports, and California an $800 minimum); and foreign qualification wherever you have an office or staff.

• Where to form: Wyoming and Delaware are common; if you actually operate in North Carolina or elsewhere, register there too (see yclcpa.com/llc and yclcpa.com/annual).
• Inventory states: Target Plus sellers using a 3PL or warehouse should list the inventory states every year; once vendor goods reach Target's DC, they have been sold to Target and are generally no longer your inventory.
• P.L. 86-272 is narrow: it protects only solicitation of orders for tangible goods; inventory in the state, or gross-receipts taxes like the Texas franchise tax and Washington B&O, generally fall outside it.

Three questions decide: is the owner a U.S. tax resident, will profit stay in the company, and do you plan to raise money or grow into stores? U.S. residents can start with a single-member LLC; with steady, higher profit, look at an S corporation. Foreign owners, sellers keeping profit in the business and vendors with large POs usually use a C corporation, or an LLC that elects C status on Form 8832.

Description: each row is a common situation, with the usual entity, how it files, W-9 or W-8, and what to watch.

Your situation	Usual entity	How it files	Form for Target / Stripe	Watch for
U.S. citizen or green card holder, starting out	Single-member LLC	Schedule C + self-employment tax	W-9 (individual SSN or the LLC's EIN, per the instructions)	Look at S corporation as profit grows (yclcpa.com/scorp)
U.S. resident, steady higher profit	LLC taxed as S corporation	1120-S; owner takes reasonable salary	W-9	Payroll required; no foreign shareholders
One Chinese owner, modest volume	Wyoming or Delaware LLC (no election)	Pro forma 1120 + 5472; owner with ECI files 1040-NR	Owner's W-8 (generally W-8ECI)	If only a W-9 is accepted, weigh Form 8832 (yclcpa.com/walmart)
Chinese owner, high volume or keeping profit	C corporation, or LLC electing C on 8832	1120 + 5472, 21% federal	W-9	60-month lock after a change; dividends 30%, 10% by treaty
Chinese factory with a U.S. subsidiary	C corporation in Delaware or the operating state	1120 + 5472; arm's-length related-party pricing	W-9	Transfer pricing documents, BE-13, importer (yclcpa.com/subsidiary)
Several partners	Multi-member LLC	1065 with K-1s	W-9	Foreign partners may bring section 1446 withholding

For a full comparison of entities see yclcpa.com/entity; for where to form, yclcpa.com/llc.

Example (hypothetical numbers, to show the method): Ms. Li owns a home-goods factory in China. In January 2026 her factory (a Chinese company) formed A Inc., a Delaware C corporation it owns 100%, and leased space at a 3PL in North Carolina. A Inc. buys from the parent and acts as importer of record. In 2026 it was invited to Target Plus, and later in the year it received purchase orders from Target.

Suppose A Inc. pays $100,000 of after-tax profit to its Chinese parent. With a valid W-8BEN-E and treaty eligibility, it withholds 10%, or $10,000, and files Forms 1042 and 1042-S by March 15 of the next year; without the W-8BEN-E, withholding is 30%, or $30,000. A Inc.'s Form 1120 includes Form 5472 reporting its purchases from the parent, the dividend and other transactions (freight and duties paid to third parties in COGS are not on the 5472).

If you book only cash received: Target's payments come to $400,000 − $20,000 − $6,000 − $4,000 = $370,000. Booking $370,000 as revenue hides the $4,000 you could still recover; and with a $600,000 1099-K against net Target Plus payouts in the books, you'll be explaining the gap to the IRS. Gross sales with every deduction listed makes both clear.

Ideally before the invitation or the first PO, settle the entity, tax ID, bank account, W-9 or W-8, importer and bookkeeping method. Changing entities later means resubmitting everything to Target and Stripe, and Form 8832 carries its 60-month limit.

Description: read top to bottom; each row is what to do at that stage and who receives it.

Stage	What to do	Who receives it
Before applying or being invited	Choose the entity (LLC, C corporation, Form 8832 or not); decide W-9 vs. W-8; assess U.S. income tax and ITIN	YCL
After formation	Formation, registered agent, EIN; BE-13 within 45 days for a new foreign-owned company; U.S. bank account	Secretary of state; IRS; BEA; bank
At onboarding or setup	Target Plus: Stripe account, tax information, item tax codes; vendor: Partners Online setup, W-9 or W-8, EDI	Target; Stripe
Before the first import	Importer and customs broker; parent–subsidiary pricing and contract; 3PL contract	Broker; parent; 3PL
Monthly	Target Plus settlement reports, Target remittance and deduction detail; gross-basis books; deduction disputes; inventory and cost	YCL
When nexus arises	Sales tax registration in inventory states and where off-platform sales pass thresholds; resale certificates from Target and other wholesale customers	State revenue departments
January of the next year	Receive 1099-Ks; issue 1099-NECs to U.S. contractors and creators paid $2,000 or more	IRS
March 15 of the next year	Forms 1042 and 1042-S for dividends to foreign shareholders	IRS
April 15 of the next year	C corporation 1120 + 5472; foreign-owned single-member LLC pro forma 1120 + 5472 and the owner's 1040-NR; state returns	IRS; state revenue departments

Start with the route (Target Plus or vendor), then who the entity is, whether the owner is a U.S. tax resident, and where the goods sit.

• Situation A: a U.S. resident with a brand on Amazon or Shopify, aiming for Target Plus. Clean up the current company's returns, sales tax and 1099-K reconciliation first, so you can set up quickly if invited. As profit grows, assess an S corporation.
• Situation B: a Chinese owner with a Wyoming or Delaware single-member LLC. File any missing pro forma 1120 + 5472 first; decide whether to stay as is and give a W-8, or elect C status on Form 8832 and give a W-9 (see yclcpa.com/walmart); assess 1040-NR and an ITIN.
• Situation C: a Chinese factory planning a U.S. subsidiary for a brand or the vendor route. Form a C corporation and plan parent–subsidiary pricing, the importer and Form 5472 together (see yclcpa.com/subsidiary); vendor contracts and product compliance go to your attorney.
• Situation D: already a Target vendor, and payments don't match invoices. Classify every deduction per Figure 4, hold disputed items and dispute on time; if earlier years were booked net in error, assess whether to adjust.
• Situation E: selling on Target Plus, Amazon, Walmart and your own site. One set of books split by channel, each platform's 1099-K reconciled separately; off-platform and inventory-state sales tax is yours to assess and register.