Do I Need a Business License to Sell on Amazon?

Jerrika Cox

If you are thinking about using Amazon to grow your business, you are likely to ask do I need a business license to sell on Amazon? We are going to answer this question in detail.

Selling on Amazon can make you some serious cash if you go about it correctly. Many people are just now starting to realize that there are many ways that you can make good money selling on Amazon. It is one of the easiest online sales platforms to use and you will be really happy that you started selling on Amazon once you see your results.

One of the most common questions that people have is whether or not you need a business license to sell on Amazon. There are some industries and products that are federally regulated and you should know if your goods or products fall under these headings before you sell them on Amazon.

Do I Need a Business License to Sell on Amazon?

The answer to this question can be complex. For some kinds of goods, you might need to have a business license to sell on Amazon. Most of the products that are sold on Amazon are not regulated federally, which means that even a private seller can sell them without a business name or LLC.

Amazon Seller

There are some goods and services that will require a business license in some cases and you will need to reach out to a business licensing expert or attorney for more advice if you are not sure if your goods and products fall under one of these headings. The categories that are federally regulated are:

  •         Agriculture-USDA
  •         Alcoholic beverages- Alcohol Tobacco Tax and Trade Bureau
  •         Fish and Wildlife- Fish and Wildlife Service
  •         Aviation- FAA
  •         Firearms, ammo, and explosives- Bureau of Alcohol, Tobacco, Firearms, and Explosives
  •         Commercial fisheries -National Oceanic and Atmospheric Administration Fisheries Service
  •         Transportation and logistics- US Department of Transportation
  •         Radio and television broadcasting- Federal Communications Commission
  •         Nuclear Energy- US Nuclear Regulatory Commission
  •         Mining and Drilling- Bureau of Safety and Environmental Enforcements
  •         Maritime Transportation- Federal Maritime Commission

You can see that some of these regulated items are clearly items that cannot be sold or would not be allowed to be sold on Amazon, but there are many other kinds of products and goods that could fall under the regulation of one of these government agencies. It is always wise to assume that your goods will be in one of these groups until proven otherwise.

What About State Licensure?

There are some instances where your state might also expect that you have a license to sell products, including sales through Amazon. These products might require state licensure to make sure that you are legally able to sell through Amazon:

  •         Food production
  •         Legal
  •         Medicine
  •         Construction
  •         Accounting
  •         Plumbing
  •         Restaurant and bar

As with the federal list, some of these categories will probably never intersect with Amazon’s requirements or allowed items to be sold through their marketplace, but there are a few categories where there could be a need for state licensure to sell on Amazon. You can contact an attorney or a permits and licenses expert in your local area for support with determining if you need state licensure or not to sell these items through Amazon.

Do I Need a Business License to Sell on Amazon

Tax Permits

This is the primary area of concern for many Amazon sellers and this is more likely to be an area that you need to focus your energies on. Amazon sellers are affected by sales tax and other variables related to taxable goods and you might have to have a business license to get your sales tax ID for your Amazon seller account.

Tax Permit for Amazon Sellers

In the past, this was not a factor for those selling through Amazon and other online sales platforms, but there has been increasing pressure in many states to begin to collect these taxes. Amazon is not very specific about how these taxes will be applied and you should be sure that you understand how this part of your sales is affecting your bottom line and whether or not you need a sales tax ID to be able to sell properly through Amazon.

Taking Your Amazon Seller Account to the Next Level can be Easy

Knowing how to apply for the right permits and licenses can save you a lot of headaches down the road and ensure that you are able to sell successfully on Amazon. If you have been trying to decide if this is the right way to make some extra cash or to transition your business to a fully online sales model, you will find that licenses and permits will affect your ability to grow your business.

If you are ready to work toward a brighter financial future and make the income that you have always dreamed about, reach out to us today! We can help you create the business and income that you have always wanted through our successful programs.

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