Selling on Walmart Marketplace: requirements, fees, WFS, how it compares with Amazon, and entity and tax planning for foreign-owned LLCs (2026)

Walmart is one of the largest U.S. retailers, and its third-party Marketplace is the part it has been growing fastest: no monthly fee, its own fulfillment network (WFS), the Walmart+ membership and the Walmart Connect ad platform, plus 2026 discounts for new sellers from the U.S., China and other countries. Compared with Amazon there are fewer sellers and a higher bar, since Walmart looks at your selling history. It suits sellers who already have a working business elsewhere and want another channel.

• Open to overseas sellers: Walmart's recruitment page lists sellers based in Canada, Chile, China, Germany, India, Japan, Mexico, Singapore, South Korea, Thailand, Turkey, the U.K., Vietnam and the U.S.; its tax classification page (updated 2026-11-02) also lists Hong Kong and Taiwan among the W-8BEN-E jurisdictions. Seller Center's list at the time decides.
• The bar is part of the opportunity: selling history, GS1 barcodes and WFS or U.S. fulfillment keep some sellers out, so categories are usually less crowded than on Amazon.
• Channel diversification: the same stock can go into WFS for Walmart orders while Amazon, TikTok and your own site run in the same company. With several channels, W-9 or W-8, 1099-Ks, sales tax and inventory all need to line up (see Figure 6 below).
• Settle the entity first: the very first onboarding step asks for your entity type and tax form, and a wrong choice is hard to undo. Read the foreign-owned LLC section and the 5-year example before you submit.

Description: each row is a checkpoint, with Walmart's requirements, the tax and government side, and what to decide in advance.

Checkpoint	Walmart's side	Tax and government side	Decide in advance
1. Entity	U.S. company (EIN) or a company from a listed country	State formation, RA, EIN; Form 5472 every year if foreign-owned	Which company, a new one or not, Form 8832 or not
2. Entity type and tax form	Pick from the list; W-9, W-8BEN-E or W-8ECI	Must match IRS records	A disregarded entity has no match; decide the route first
3. Business verification	ID, business documents, proof of address; possible face check	Same name, address and TIN everywhere	EIN letter, formation papers and bank account name agree
4. Payouts	Connect a third-party payment processor	The processor issues 1099-Ks (W-9 sellers)	Payout account in the company's name
5. Fulfillment and returns	WFS or a U.S. warehouse; U.S. return address	Physical presence where inventory sits	Who imports, which states hold stock
6. Products and brand	UPCs, content standards, restricted categories, Brand Portal	Certifications and trademarks handled by specialists	Duties and certification costs in pricing
7. Sales tax	Walmart collects on its orders	Off-platform sales and inventory-state registration are yours	Thresholds count all channels
8. Books and returns	Reconciliation reports, 1099-K	Federal and state returns, Form 5472, annual reports	Monthly books, filing calendar

Walmart takes businesses, not individuals: U.S. sellers need a business tax ID (EIN) or business license number, and an SSN isn't accepted; overseas sellers must be incorporated in a listed country, and a Chinese company enters its business license number. Walmart sets your tax classification by EIN and country of incorporation: U.S.-incorporated with an EIN is W-9; foreign-incorporated with an EIN is W-8ECI; foreign-incorporated without an EIN is W-8BEN-E.

Walmart's published requirements:

• Tax ID or business license number: U.S. companies give an EIN and state registration number; Chinese companies give their business license number. No SSN, so a sole proprietor filing Schedule C generally can't open a store.
• Documents proving the business name and address: a business license or registration certificate, and if asked, a utility bill, bank statement or letter of authorization.
• Selling history: the application asks about your marketplace or e-commerce track record, and it weighs in the review.
• GS1 UPCs / GTINs: barcodes need to come from a GS1 company prefix; resold barcodes bought online are often rejected.
• Compliant catalog: Walmart's Prohibited Products Policy applies, and some categories need approval first.
• Fulfillment: WFS, or a U.S. B2C warehouse that can handle returns; the return address must be in the continental U.S. and can't be a P.O. box.

Description: the first three rows are Walmart's tax classification rules; the last row is a single-member U.S. LLC owned by a foreign person. Entity types come from Walmart's entity type guide.

Your situation	Walmart tax classification	Entity types offered	Watch out
U.S.-incorporated, has an EIN	W-9	C-Corporation, S-Corporation, Partnership, LLC – C-Corp, LLC – S-Corp	Name and TIN on the W-9 must match IRS records; only W-9 sellers get a 1099-K
Foreign-incorporated, has an EIN	W-8ECI	Corporation, Partnership	Says the income is effectively connected with a U.S. business; a U.S. return is due (Form 1120-F for a corporation)
Foreign-incorporated, no EIN	W-8BEN-E	Corporation, Partnership	Available for China, Hong Kong, Taiwan and 12 other jurisdictions
U.S. LLC with one foreign owner, no election	Falls under W-9 by Walmart's rules	No matching option	IRS: a disregarded entity with a foreign owner gives a W-8, not a W-9. See below

• Individuals: Walmart supports W-8BEN only for sole proprietors from Mexico or India; a Chinese individual can't join in their own name.
• Extra documents for international sellers: depending on the country, identity information for the legal representative or director, a certificate of incorporation, a bank statement and a non-toll-free business phone. The PAN card and GST certificate on Walmart's recruitment page are India-specific.
• Should a Chinese company get an EIN? The W-8BEN-E route doesn't need one. If your home-country company has an EIN, Walmart treats you as W-8ECI, which says your income is effectively connected with a U.S. business and means a Form 1120-F every year. Don't apply for an EIN just to get onboarded before you've thought it through.

Five steps: business verification, payout setup, market details, fulfillment and returns, and your catalog. Walmart says business verification takes from a few minutes to two business days, and setup can take up to four hours after you add inventory; if you're asked for identity verification, you have seven days from the notice or the account is closed.

1. Business verification: company details, entity type, both sides of the representative's ID (PNG, JPG or PDF under 5 MB each), a business document and proof of address. Enter ID details exactly as they appear, including special characters; mismatches delay review.
2. Payout: connect a third-party payment processor (such as Payoneer) in Seller Center and file your W-9 or W-8 there. The account name should match the company name.
3. Market details: display name, customer service email and phone. A foreign seller with a U.S. tax ID enters it here with the matching U.S. legal name.
4. Fulfillment and returns: choose WFS or self-fulfillment, shipping templates and at least one U.S. return center.
5. Catalog: create or bulk-upload items, add inventory, pass content and category review.

• Settle the entity type before submitting: sellers report that once onboarding is complete they can't change the entity type themselves and have to go through Walmart support. Walmart's own guide lists "What happens if I choose the wrong entity?" as a question without publishing an answer. So decide the tax route first, then submit.
• Keep documents consistent: state formation documents, the IRS EIN letter (CP 575 or 147C), the bank account name and the W-9 or W-8 should all show the same name and address; if the EIN letter shows an old address, file Form 8822-B first (see the guide at yclcpa.com/dupein).

There is no setup or monthly fee. Each sale carries a category referral fee calculated on the total sales price, including shipping, handling and other charges to the customer. WFS adds a per-unit fulfillment fee and a volume-based storage fee. The 2026 New-Seller Savings give referral discounts by sales volume, WFS discounts and ad credits.

Description: the top rows are referral rates for common categories; the bottom rows are WFS fulfillment and storage fees.

Item	Rate or amount	Notes
Setup and monthly fees	$0	Neither Marketplace nor WFS charges them
Home, kitchen and garden; toys; pet; tools; everything else	15%	"Everything Else" defaults to 15%
Apparel and accessories	5% / 10% / 15%	Total price up to $15: 5%; $15–$20: 10%; over $20: 15%
Beauty and personal care; baby	8% / 15%	$10 or less: 8%; over $10: 15%
Furniture (indoor and outdoor)	15% / 10%	15% on the portion up to $200, 10% above
Consumer electronics	8%	Electronics accessories: 15% up to $100, 8% above
Personal computers	6%	Among the lowest
Jewelry and precious metals	20% / 5%	20% on the portion up to $250, 5% above
WFS fulfillment (standard)	$3.45 for 1 lb or less; $4.95 for 2 lb; $5.45 for 3 lb	Greater of unit or dimensional weight plus 0.25 lb packaging; +$1 for items priced under $10, +$0.50 for apparel or hazmat
WFS storage	$0.75 per cubic foot per month	$2.25 for items held over 30 days in October–December, and for items held over 12 months

• 2026 New-Seller Savings: for eligible new sellers (U.S. and international) who go live after February 1, 2026, from February 2, 2026 to January 31, 2027: 20% off base referral fees on the first $50,000 of sales, 30% off from $50,000 to $500,000 and 40% off above $500,000; 10% off WFS up to $2,000; plus ad credits. You opt in on the payments page after going live, and Walmart confirms the amounts.
• Fees are expenses, not a reduction of sales: book gross sales as income and record referral, fulfillment, storage and ad fees as expenses; that's how the 1099-K reconciles.
• Fees change: check Seller Center and the pricing page before you set prices, and reconcile to what each settlement actually deducted.

WFS (Walmart Fulfillment Services) is Walmart's fulfillment network: you send stock to WFS and Walmart picks, ships, handles customer service and returns. WFS items usually get fast-delivery tags and free shipping for Walmart+ members, which helps traffic. The Pro Seller badge reflects your overall performance, and ads run through Walmart Connect.

• Why WFS: Walmart owns delivery speed and returns, so performance metrics are easier to meet, and Walmart+ free-shipping orders follow. WFS also offers multichannel fulfillment for your other sales channels; check Walmart's current terms for availability.
• The tax side of WFS: whichever state your WFS stock sits in, you hold inventory there and may have physical presence (see the sales tax section below). Inbound shipments show the receiving warehouse; keep a monthly list of states where you hold stock.
• Pro Seller badge: Walmart assesses on-time delivery, cancellations, listing quality and other measures; status refreshes on the 5th and 20th of each month, and falling short for two consecutive cycles loses the badge. Current criteria are on the Listing Quality page in Seller Center; they have changed several times in the past year.
• Walmart Connect: on-site search ads (Sponsored Products and others), pay per click. New sellers in 2026 get some ad credit. Book ad invoices monthly and match them to the card statement.
• Brand: with a registered U.S. trademark you can enroll in Walmart Brand Portal to manage item content and report infringement (next section).

Stricter than many marketplaces: cancellations at 2% or below, on-time delivery at 90% or above, valid tracking at 99% or above and returns at 6% or below, with warnings and possible suspension when you miss. The return window is at least 30 days; you can't charge return shipping, and you can't charge customers duties after purchase. Items need GS1 barcodes, some categories need approval, and Brand Portal generally requires a registered U.S. trademark.

Description: each row is a metric and its standard; metrics are measured over the last 30 or 60 days.

Metric	Standard	Measurement period
Cancellation rate	2% or below	Last 30 or 60 days
On-time delivery rate	90% or above	Last 30 or 60 days
Valid tracking rate	99% or above	Last 30 or 60 days
Seller response rate	95% or above	Last 30 or 60 days
Negative feedback rate	2% or below	Orders sold in the last 60 days
Return rate	6% or below (9% for resold inventory)	Orders delivered in the last 60 days
Item not received rate	2% or below	Orders expected in the last 60 days
Late shipment rate	5% or below	Last 30 or 60 days

• Returns: a minimum 30-day window starting seven days after the ship date; items bought October 1 to December 31 are generally returnable until January 31. Return requests opened within the window must be honored, with no negotiating, delaying or discouraging; no return shipping fees, and restocking fees are generally prohibited. You can't charge customers duties or import fees after purchase, which matters for direct cross-border shipping.
• Item content: titles, images and attributes must meet category content standards; barcodes must come from GS1; one UPC can't cover different products.
• Prohibited and restricted items: Walmart's Prohibited Products Policy applies, and some categories require approval. Children's product certificates (CPC), cosmetics registration under MoCRA and FCC authorization for wireless devices are handled by testing labs and lawyers; we book those costs correctly.
• Walmart Brand Portal: Walmart says the rights owner needs a trademark registered with the USPTO (a seven-digit registration number, active status); whether a pending application with an eight-digit serial number qualifies is described inconsistently across Walmart's pages, so Brand Portal review decides. Trademark filings are done by a trademark attorney.

The big differences are who gets in, how fees work and who ships. Amazon, eBay and Etsy are self-serve with a low bar; Walmart reviews your history and only takes businesses; Wayfair is a supplier model where Wayfair usually sets the retail price; TikTok Shop runs on content and creators. All of them collect sales tax on their orders, and all issue 1099-Ks only to U.S. sellers who provide a W-9.

Description: each row is a platform, with who can join, main fees, fulfillment, traffic, sales tax, and payouts and 1099-K. Figures are typical and vary by category.

Platform	Who can join	Main fees	Fulfillment	Traffic	Sales tax	Payouts and 1099-K
Walmart	Businesses: U.S. companies (EIN) or companies from listed countries; selling history required	No monthly fee; referral 6%–20%, mostly 15%	WFS or self-fulfilled from a U.S. warehouse	Search traffic, less competition; Walmart+ members	Walmart collects and remits in marketplace facilitator states	Paid via a payment processor; 1099-K to W-9 sellers above $20,000 and 200 orders
Amazon	Individuals or businesses; self-serve in the U.S. and most countries	Professional plan $39.99/month; referral around 15% in most categories (8%–15% common)	FBA or self-fulfilled	Largest traffic, most competition	Amazon collects and remits	U.S. sellers (W-9) get a 1099-K above $20,000 and 200; foreign sellers file a W-8
Wayfair	Furniture and home suppliers, by application; includes overseas suppliers	Usually not a commission: you quote a wholesale cost and Wayfair typically sets the retail price	Drop ship by the supplier or Wayfair's CastleGate warehouses	Home-category traffic	Wayfair charges customers tax as the retailer	Paid on wholesale invoices, generally no 1099-K; the supplier agreement decides
Etsy	Handmade, vintage and craft-supply sellers, individuals or businesses	$0.20 per listing; 6.5% transaction fee; U.S. payment processing 3% + $0.25; offsite ads extra	Self-fulfilled	Handmade and personalized goods	Etsy collects in marketplace facilitator states	U.S. sellers (W-9) get a 1099-K above the federal threshold
TikTok Shop	Local stores need a U.S. company or U.S. person; cross-border stores usually by invitation	Around 6% in most categories, plus creator commissions	FBT or approved warehouses	Short video and live shopping	TikTok collects and remits	W-9 sellers above $20,000 and 200 get a 1099-K (see yclcpa.com/tiktok)
eBay	Individuals or businesses; most countries	Final value fee around 13.6% in most categories + $0.30–$0.40 per order	Self-fulfilled	Used, collectible and long-tail items	eBay collects and remits	U.S. sellers (W-9) get a 1099-K above the federal threshold

• Temu and SHEIN: both run fully managed models for Chinese factories (you supply goods; the platform prices and runs U.S. operations) and are also recruiting U.S. local sellers. In the fully managed model the factory generally isn't selling in the U.S. itself; local-seller programs raise the same U.S. tax questions as any other marketplace.
• One company can sell on several platforms: the tax forms must be consistent. The same company can't be a W-8 seller on Amazon and a W-9 seller on Walmart. If you make an 8832 election, update every platform.
• Platform fees aren't the only cost: ads, returns, storage and duties often move margins more than referral fees. A margin model that works on one platform needs to be rebuilt with Walmart's fees.

None of them matches. A U.S. LLC with one foreign owner that hasn't elected corporate treatment is a disregarded entity for U.S. tax purposes: its income is the foreign owner's, and the owner is the beneficial owner. The W-9 instructions say that if the owner of a disregarded entity is a foreign person, the owner completes a Form W-8 instead of a W-9, even if the owner has a U.S. TIN. Walmart's U.S. route, though, expects a U.S. entity on a W-9. So the question isn't which label is closest; it's which route to take.

This is the most common sticking point for foreign-owned LLC sellers. The typical case: a foreign individual owns 100% of a Wyoming LLC that files pro forma 1120 + Form 5472 every year. On Walmart's Business Verification page the entity type list offers only C-Corporation, S-Corporation, Partnership, LLC – C-Corp and LLC – S-Corp, and none of them matches how the IRS sees this LLC.

• What the LLC is for tax purposes: under Treas. Reg. §301.7701-3, a single-owner U.S. LLC without a Form 8832 election is disregarded by default. It's treated as a domestic corporation only for Form 5472 information reporting (the pro forma 1120 carries no tax; see the guide at yclcpa.com/5472), which doesn't make it a C corporation.
• W-9 or W-8: under the W-9 instructions, this LLC shouldn't give a W-9 in its own name; the foreign owner gives a W-8 (W-8BEN for an individual, W-8BEN-E for a company, W-8ECI when the income is effectively connected with a U.S. business). The W-8BEN-E instructions likewise say a disregarded entity generally doesn't provide the form; its owner does. The forms are compared in the guide at yclcpa.com/w8ben.
• Why Walmart's routes don't fit: Walmart treats a U.S.-incorporated LLC with an EIN as a W-9 seller, and it supports W-8BEN for individuals only from Mexico or India, so a Chinese owner can't sign up personally.
• S-Corporation or LLC – S-Corp: not available. Foreign persons can't be S corporation shareholders.
• LLC – C-Corp without an 8832: that's a W-9 statement that the LLC is a U.S. entity taxed as a corporation, while IRS records show a disregarded entity. Walmart's processor then reports the 1099-K under the LLC's EIN while the LLC files only a pro forma 1120 with no income, which can draw IRS matching or delinquency notices; if Walmart rechecks your documents and they don't line up, payouts can be held or the account suspended. The W-9 is signed under penalties of perjury.

Description: each row is a route, with what to pick on Walmart's form, the tax effect, who it suits and what to watch. None fits everyone; compare them with your profit, plans and other platforms.

Route	Pick on Walmart's form	Tax effect	Suits	Watch out
A. LLC files Form 8832 to be taxed as a corporation	LLC – C-Corp (once effective and the IRS acceptance letter arrives)	The LLC becomes a U.S. C corporation: real Form 1120 + 5472, 21% federal tax; dividends withheld at 30%, 10% under the treaty	Keeping the existing LLC and its track record; profit mostly reinvested	Generally locked for 60 months; all of the LLC's business (Amazon, TikTok) is taxed as a corporation
B. Form a new U.S. C corporation	C-Corporation	The new company files 1120 + 5472; the LLC is unchanged	Separating the Walmart business from the LLC	No track record; dealings between the two companies need pricing and books
C. Use your Chinese (or Hong Kong) company as an international seller	Corporation under W-8BEN-E (no EIN)	The home company sells in the U.S. directly; whether it has a U.S. taxable business depends on facts, with a Form 1120-F (or protective return) if needed	Sellers with a home-country company who don't want a U.S. layer	WFS or U.S. warehouse and U.S. return address still required; home-country tax separately
D. Add a second member so the LLC becomes a partnership	Partnership	Files Form 1065; the LLC withholds under section 1446 on a foreign partner's effectively connected share (up to 37% for individuals)	Generally not advisable just to get onboarded	Heaviest withholding and filing burden
E. Pause and ask Walmart in writing	—	No change	Still comparing routes	Don't pick a type that contradicts IRS records just to get approved

How we usually approach it: lay out your profit, whether you'll take money out, which tax forms your other platforms hold and whether you have a home-country company; work out five years of tax and compliance cost for routes A, B and C; then decide, and update Walmart and the other platforms together. For a case-specific answer, book a paid in-depth consultation (yclcpa.com/advisory) and get a written answer before you submit the Walmart form.

Form 8832 lets the LLC elect to be classified as an association taxable as a corporation. From the effective date, the LLC is a U.S. C corporation for federal tax: it files a real Form 1120 (with Form 5472 when 25% or more foreign-owned), pays 21% federal tax, and withholds on dividends to foreign shareholders. Its state-law status and its EIN stay the same. The price: you generally can't change again for 60 months, and all of the LLC's business is taxed as a corporation.

• The 60-month rule: under §301.7701-3(c)(1)(iv) and the Form 8832 instructions, after a change in classification the entity generally can't change again by election for 60 months, unless more than 50% of the ownership has changed hands and the IRS allows it by private letter ruling. An initial election by a newly formed entity effective on its formation date doesn't count, so an LLC that has been operating is subject to the limit when it changes.
• Effective date: no more than 75 days before the filing date and no more than 12 months after; a date further back defaults to 75 days before filing. To be a corporation from January 1, file within 75 days of January 1 (roughly by mid-March), so the year isn't split into two filings.
• Mid-year changes: the period before the effective date is still reported as a disregarded entity (pro forma 1120 + 5472, and the owner's own return); the corporation's tax year starts on the effective date and goes on Form 1120. Both periods need books.
• Missed it? Rev. Proc. 2009-41 late election relief requires filing within 3 years and 75 days of the requested effective date, reasonable cause, and returns already filed consistent with the requested classification with no inconsistent returns. Outside that, only a private letter ruling with a user fee.
• Deemed contribution: when a disregarded entity elects corporate status, the owner is treated as contributing all of its assets and liabilities to the new corporation for stock. That is generally tax-free, but liabilities exceeding asset basis and similar facts need a look.
• Filing: Form 8832 is a paper form mailed to the IRS (a Wyoming company mails it to Ogden, Utah, per the IRS's current address list); the owner signs, and a foreign owner without a U.S. TIN writes "none" on line 4b. The IRS generally sends an acceptance or non-acceptance letter within 60 days; follow up if nothing arrives. Once the acceptance letter arrives, choose LLC – C-Corp on Walmart, file a W-9, and attach a copy of the 8832 to that year's Form 1120.
• Going back is expensive: changing from a corporation back to a disregarded entity is treated as a liquidation, with corporate-level tax on appreciated assets. Form 8832 isn't something to try out.
• Update everyone: Amazon, TikTok Shop, payment processors and banks that have the business as "foreign owner on a W-8" need "U.S. corporation on a W-9." When the corporation pays dividends to a foreign shareholder, it withholds and files Forms 1042 and 1042-S, and the shareholder gives a W-8BEN to claim the treaty rate (see the guide at yclcpa.com/ccorp).

It depends on the facts. A foreign person who sells continuously on a U.S. marketplace through a U.S. LLC, with stock in U.S. warehouses delivered to U.S. customers, may well be engaged in a U.S. trade or business, and the related income is effectively connected income (ECI): the owner files Form 1040-NR and pays graduated rates. A China resident can look to the U.S.–China tax treaty, under which business profits are taxed in the U.S. only if attributable to a U.S. permanent establishment, but the treaty position has to be claimed on a timely return, and states don't follow the treaty.

• Trade or business (§864(b)): there's no dollar threshold; the question is whether activity is considerable, continuous and regular. Regular retail sales with U.S. storage and delivery generally look like a U.S. business.
• ECI (§864(c)): for someone engaged in a U.S. trade or business, U.S.-source business income is generally ECI. Source depends on the goods: for purchased inventory it generally follows where title passes; for goods you manufacture, it follows where production happens. When WFS ships to a U.S. customer, title generally passes in the U.S.
• The treaty: under the U.S.–China treaty, using facilities solely to store, display or deliver goods generally isn't a permanent establishment, and a WFS warehouse is Walmart's, not your fixed place of business. Whether the treaty applies, and whether claiming it through a U.S. LLC runs into technical issues, depends on your Chinese tax residence and the facts. A treaty position is generally disclosed on Form 8833 with the 1040-NR.
• Filing on time matters: a nonresident alien can deduct expenses only by filing a timely, true and accurate 1040-NR (generally within 16 months of the due date); for a foreign corporation's Form 1120-F the window is 18 months. If ECI is found later and no return was filed, tax can be computed on gross income. When in doubt, consider a protective return.
• A 1040-NR needs an ITIN: a foreign owner without an SSN applies for an ITIN with the return (see the guide at yclcpa.com/itin); YCL is an IRS Certifying Acceptance Agent, so we verify the passport and the original stays with you.
• No self-employment tax: nonresident aliens don't pay the 15.3% self-employment tax that applies to U.S. residents on Schedule C.
• State tax is separate: states where WFS holds your stock may treat you as having nexus through inventory and sales, and the U.S.–China treaty doesn't bind the states.
• China side: how a China resident reports overseas business income at home is a question for a Chinese tax advisor.

Example (hypothetical numbers, to show the method): Mr. Zhang, a China tax resident, owns 100% of a Wyoming LLC (disregarded) that has sold home goods on Amazon for two years. From 2027 he wants to add Walmart with WFS. Expected Walmart plus Amazon sales are $600,000 a year. After goods, inbound freight and duties of $270,000, referral fees of $90,000, WFS and other fulfillment of $60,000, ads of $48,000, returns and other costs of $30,000, and software and professional fees of $12,000, net profit is $90,000 a year. Assume profit and tax rates stay flat for five years, and count only federal income tax; state tax applies to every route and is computed separately.

The math: A2 uses the 2026 single-filer brackets (nonresident aliens generally get no standard deduction): $12,400 × 10% = $1,240; ($50,400 − $12,400) × 12% = $4,560; ($90,000 − $50,400) × 22% = $8,712; total $14,512. The 20% qualified business income deduction, if it applies, would lower it further. B1 is $90,000 × 21% = $18,900. B2 adds the dividend tax: ($90,000 − $18,900) × 10% = $7,110.

How to read it:

• On federal tax alone, staying disregarded costs less, but it assumes you can fill in Walmart's form truthfully, and in practice you can't; and A1's "$0" depends on facts that hold up and timely filing.
• What the extra C corporation tax buys: a truthful Walmart form, a W-9 on every platform, no 1040-NR for the foreign owner from the business, and only 21% on profit kept in the company to grow. The more you retain and the less you pay out, the smaller the gap.
• Route C (home company as an international seller) isn't in the table because its U.S. tax looks like A1 or A2, plus home-country tax; it needs its own calculation.
• Every case differs: margin, payout plans, state tax (which states WFS uses) and Chinese tax can each flip the answer. Run it before you submit to Walmart, not after the platform has stopped you.

Start with who owns the business, whether profit stays in the U.S., and where else you sell. U.S.-resident sellers move to an S corporation when profit is high enough to save self-employment tax; a foreign owner's single-member LLC chooses among Form 8832, a new C corporation and the home company's international route; a foreign company's U.S. subsidiary is usually a C corporation; and a multi-platform seller keeps the entity and tax forms consistent on every platform.

Description: each row is a kind of seller, with common entities, what to pick on Walmart's form, annual federal filings and what to watch. Case-by-case numbers decide.

Seller	Common entity	On Walmart's form	Annual federal filings	Watch out
(a) U.S.-resident seller (citizen, green card holder, tax resident)	LLC to start; S corporation once profit is steady; C corporation for investors or retained profit	LLC – S-Corp, S-Corporation or C-Corporation	Single-member LLC: Schedule C + 15.3% self-employment tax; S corporation 1120-S; C corporation 1120	A U.S.-owned single-member LLC has no exact match either; elect S status when profit justifies it (see yclcpa.com/scorp) or ask Walmart in writing
(b) Foreign-owned single-member U.S. LLC	8832 to C corporation; or a new C corporation; or the home company instead	LLC – C-Corp, C-Corporation, or Corporation on the international route	C corporation: 1120 + 5472; disregarded: pro forma 1120 + 5472, owner possibly 1040-NR	Choosing LLC – C-Corp without an 8832 conflicts with IRS records
(c) U.S. subsidiary of a foreign company	U.S. corporation (Inc.) or an LLC taxed as a corporation	C-Corporation or LLC – C-Corp	1120 + 5472; withholding on dividends, interest and fees paid to the parent (see yclcpa.com/subsidiary)	A subsidiary LLC wholly owned by the parent with no election is disregarded and back to case (b); goods sold between parent and subsidiary need arm's-length prices
(d) Selling on several platforms	One entity for everything, or separate companies by platform or brand	Same as on the other platforms	By entity	Same tax form for the same entity everywhere; reconcile each platform's 1099-K; combine inventory states

More on entity choice in the guide at yclcpa.com/entity; which state to form in at yclcpa.com/llc; C and S corporation elections at yclcpa.com/ccorp and yclcpa.com/scorp.

In states with marketplace facilitator laws, Walmart is the taxpayer and seller of record for marketplace orders and collects and remits sales tax, so sellers generally don't collect on those orders. Off-platform sales (your own site, wholesale, in person) are yours; some states still require marketplace sellers with inventory there to register or file; and state income, franchise and gross receipts taxes aren't the platform's job.

• Thresholds count all channels: most states require registration above $100,000 a year in sales into the state, and some count marketplace sales toward it. North Carolina's rules are in the guide at yclcpa.com/salestax; tools for your own site are covered at yclcpa.com/stripetax.
• WFS inventory is physical presence: stock in a state's WFS warehouse is your property there. Physical presence has no sales threshold, and federal P.L. 86-272 protects only sellers whose in-state activity is soliciting orders, which inventory in the state generally goes beyond (details in the guide at yclcpa.com/fba).
• Texas franchise tax: LLCs are taxable entities, single-member ones included; for 2026 and 2027 reports the no-tax-due threshold is $2,650,000, below which no tax is due but an information report is still filed, by May 15 each year.
• California's $800 minimum: if you're "doing business" in California (sales, property or payroll above the FTB's annually adjusted thresholds, and inventory in a California warehouse is property there), an LLC, S corporation or C corporation owes at least $800 a year.
• Washington B&O: a gross receipts tax; marketplace sellers with nexus still file.
• Foreign owners included: state taxes aren't limited by the U.S.–China treaty.

Walmart pays out net, so book gross sales as income and list referral fees, WFS fees, ads and returns separately. W-9 sellers with more than 200 orders and more than $20,000 in gross sales in a year receive a 1099-K from the payment processor the next year; it shows gross amounts and must be reconciled line by line to settlement reports. Inventory cost includes the product, inbound freight, duties and shipping into WFS, and flows to cost of goods sold when items sell.

• 1099-K: Walmart's guide says it goes only to sellers registered as W-9 entities, with a federal threshold of more than 200 orders and more than $20,000, and that some states differ; the payment processor emails instructions for retrieving it. Update your tax ID in Seller Center before the reporting year ends; changes made the next year aren't used for the prior year's form. Reconciliation is covered in the guide at yclcpa.com/1099k.
• Settlement reports: download the reconciliation report from the payments area of Seller Center, and split each cycle into item sales, shipping income, sales tax collected by Walmart, referral fees, WFS fulfillment and storage, ads, refunds and reimbursements. Sales tax Walmart collects isn't your income.
• Inventory and COGS: keep year-end quantities and costs; WFS reimbursements for lost or damaged stock are income; disposed stock goes to cost in that year. Small businesses (average gross receipts over the prior three years of no more than $32,000,000 for 2026) can use simplified inventory methods.
• Tariffs and imports: the $800 de minimis exemption has been suspended since August 29, 2025; import rules and tariff layers are in the guide at yclcpa.com/fba. The importer of record carries the duties and is the one who can claim refunds.
• Income tax for U.S. owners: a single-member LLC files Schedule C, pays 15.3% self-employment tax and makes quarterly estimates; an S corporation pays the owner a reasonable salary; a C corporation pays 21%. The 20% qualified business income deduction is now permanent.
• Foreign-owned companies: a disregarded entity files pro forma 1120 + 5472 by April 15 each year (fax or mail); a C corporation files 1120 + 5472 and can e-file. Each missed Form 5472 starts at a $25,000 penalty.
• BOI and BE-13: domestic companies no longer file BOI reports (see the guide at yclcpa.com/boi); a foreign person who forms a U.S. company and acquires 10% or more of the vote files Form BE-13 with the Bureau of Economic Analysis within 45 days.

The most expensive mistakes happen before you submit: picking an entity type at random, giving the wrong W-9 or W-8, applying for an EIN or filing an 8832 without a plan. Prepare in the order below and most issues are settled before onboarding.

Description: read top to bottom by time; each row is what to do and who receives it.

When	What to do	Who receives it
Before submitting to Walmart	Choose the route: 8832, a new C corporation or the home company's international route; model five years of tax; check other platforms' tax forms	YCL (paid in-depth consultation at yclcpa.com/advisory, written answer)
If electing on Form 8832	Mail it within 75 days for a January 1 effective date; expect the IRS letter in about 60 days	IRS
After the IRS acceptance letter	Choose LLC – C-Corp on Walmart and file a W-9 with the payment processor; update Amazon, TikTok and the bank	Walmart; other platforms
Before the first shipment	Set the importer of record and customs broker; check which states WFS uses	Customs broker; WFS
Monthly	Download reconciliation reports, ad invoices and WFS inventory reports; keep the books	YCL
When nexus arises	Register for sales tax where off-platform sales pass thresholds or inventory requires it; Texas, California and other franchise taxes	State tax agencies
Following January	Receive and reconcile the 1099-K	Payment processor
Following April 15	1120 + 5472 (with a copy of the 8832); state returns; 1042 and 1042-S for dividends (March 15)	IRS; states
Every year after	The same; Wyoming annual report in the anniversary month	IRS; secretary of state

• Calculate, then choose: an 8832 election lasts at least five years, and going back is treated as a liquidation.
• Don't apply for an EIN casually: a foreign company with an EIN is classified as W-8ECI by Walmart.
• One entity, one set of tax forms: keep every platform, bank and payment processor consistent.
• Plan inventory: WFS spreads stock across states, so know in advance where you'll have obligations.
• Keep evidence: Walmart support's written answer on entity type, the 8832 acceptance letter, and copies of your W-9 or W-8.

Start with your current entity and the tax forms you've given other platforms, then look at what Walmart is asking for. Common situations:

• Situation A: a foreign-owned single-member LLC already selling on Amazon, stuck on Walmart's entity type. Don't submit yet. Take the Amazon profit and your payout plans and compare 8832, a new C corporation and the home company's international route; once decided, update Walmart and Amazon together.
• Situation B: only a Chinese company, testing Walmart. Use the W-8BEN-E route without applying for an EIN first; at the same time assess U.S. and state tax from U.S. warehousing, with a protective Form 1120-F if appropriate.
• Situation C: a foreign-owned LLC already chose LLC – C-Corp but never filed an 8832. Assess quickly whether a late election under Rev. Proc. 2009-41 works (within 3 years and 75 days, with past returns consistent with corporate status) or whether Walmart's records should be corrected, and check whether past 1099-Ks and returns line up.
• Situation D: a U.S. resident applying with a single-member LLC. There's no exact match for you either. With enough profit, consider an S election and choose LLC – S-Corp; if you're just starting, ask Walmart in writing and keep the answer, and don't pick a type that contradicts IRS records.
• Situation E: already selling, with a 1099-K that doesn't match or a letter from a state. Reconcile to the settlement reports and submit the letter at yclcpa.com/notice; we check deadlines and amounts and file late returns or request relief.