The answer to your question is maybe yes and maybe no! Don’t get confused, we will sort this out for you. Business permit requirement largely depends upon the state you are operating in. There are some states and cities, where you do not require any license to operate.
When you would see different sellers for a product on Amazon, you would also ask yourself – Can I sell on Amazon as an individual? Is selling through Amazon worth it? Is Amazon FBA worth it in 2020?Do I need a business license to sell on Amazon? And many more such questions would be floating your mind.
Do not worry! We are here to help you and we will describe all the details.
It is really important to have requirements for licenses fulfilled before start selling on Amazon or any other platform otherwise you may be asked to pay penalties and fines for not adhering to the norms of Amazon.
How to Get Started with Amazon Selling?
If you are operating out of the US, you would need an EIN number. There are a lot of people who want to sell their products on Amazon. The requirement for business license depends on the type of town or state you are operating in.
There are also some cities and local bodies which will require your business license to let you operate in their jurisdiction. Before starting the business in that particular area, you should consult an attorney or check with your local Chamber of Commerce to gain more insight on your city’s requirements.
How to start Amazon Seller Account
You can go through the following options to start your Amazon seller account:
- Firstly, you need to visit the Amazon and go to the services section.
- Click on Services section and click on the “Start selling” link.
- Now you need to visit Seller central section and register or click on the “selling on Amazon” link.
- Visit the bottom section of Amazon and click on “ Sell on Amazon” link.
Things/documents required to start Amazon Seller Account
1. Business Information
They will need your name, address and contact information.
2. Email Address
You will also require an email address where you will receive mails related to your account.
3. Credit Card
You will not be able to register your account without a proper credit card with your billing address.
4. Phone Number
Your phone number is needed to verify your identity and send you updates.
5. Tax ID
Your tax ID will include your SSN and your firm’s federal tax ID number.
6. State tax ID
You will also need a state tax ID to complete your registration.
Cost of getting a business license
There are two kind of fees that is charged from the people registering for business license:
1. Business Licensing Fees
This fee largely depends upon the state or the local body you are operating with. For instance, in February 2018, license for ocean transportation intermediary was $825. This fee will vary form state to state and it only depends on the state body the amount they want to charge.
2. Additional State Fees
There are a few states that require you to have business license and this fee is additional to business licensing fee.
Requirements for non-US residents
Non US residents need to have EIN number and to know more about EIN number, you can visit our article on “Do you need a tax ID on Amazon”. There we have explained all the steps and requirements for getting EIN number.
Business license requirement varies from state to state and city to city. In some cities, it is mandatory to obtain a business license to start any business, while in some cities you need not obtain any license.
It is always advised to consult attorneys before beginning business in any particular area.
Pharmapacks and AnkerDirect are some of the popular sellers on Amazon.
One of my friends was selling more than 50 items on Amazon as a seller and he got the notification from Amazon for presenting his tax id in the next year. He had to register for the tax ID and along with it he also registered for a business license, as in some states he was facing issues due to local laws.
We have covered most of the information you need to find out – If you really need a business license to sell on Amazon?
You can also read other related articles such as How many people can watch Amazon Prime at once?, Do You need a Tax ID to sell on Amazon?, Decoding Renewed on Amazon – Smart Bet to Make? on our website.
Do let us know about your feedback in the comments section and we will get back to you with answers to your possible questions and suggestions.