Amazon offers a really amazing sales platform that allows people access to all kinds of markets. Even niche sales markets perform very well on Amazon, and having a seller’s account can create a generous income or successful side hustle for almost any kind of product. So, if you are wondering that do you need an LLC to sell on Amazon, you are in the right place to get the answer.
Best of all, there are many benefits to working with Amazon, like Amazon’s in-house fulfillment services, and their in-house marketing that can help get your product ads placed correctly and effectively every time for a low cost.
There are so many benefits to working with Amazon that sometimes people forget about the nuts and bolts of working on business needs before they start selling.
If you are not sure if you need an LLC to sell on Amazon, you need to read on for more information.
Do You Need an LLC to Sell on Amazon?
Amazon lets you sell products as a private seller or you can upgrade to a business account. There is therefore no actual reason that Amazon would require you to have an LLC to be able to sell with them, but you might find that this only satisfies Amazon’s requirements for your business needs.
There are many reasons that an LLC can be a benefit to you as a business owner, even if Amazon does not require that you have an established LLC for your business when you start selling with them.
What is an LLC?
An LLC, or Limited Liability Company protects your business and assets. When you sell items as an individual without an LLC, if something happens that harms someone while they are using your products, you could be sued personally for their injuries.
This can cause major financial strain and most certainly could prevent you from saving your business.
The main purpose of an LLC is to create a buffer between your personal money and your business assets in case legal action is taken against you and your business.
Not every product seems like it could fall into this category, but you would be shocked at the kinds of injuries that can arise from the most innocuous item that someone has purchased.
An LLC is chosen by about 80% of businesses in the US as their method of organization for just this reason.
Even if you are not profitable yet, having the LLC as protection can be well worth the small number of fees and effort that is needed to create the LLC and keep it active.
What Can an LLC Do For Your Business Presence Online?
An LLC can offer benefits besides protection from legal action. You will find that having an LLC makes you look far more legitimate when selling online and consumers will trust your products more readily. It also offers protection for your business name.
This means that someone else can’t create a similar product and then steal your business name and take over your niche.
You will of course be able to protect your assets and you will find that your finances will be easier as well as your taxes. Being able to file separate taxes and open a business banking account for your LLC can help you with a lot of your money considerations.
You will also get business tax benefits each year that you would not get without being an LLC.
If you want to have business partners, an LLC is a great way to create an umbrella that you all work under and that protects all of you from financial repercussions related to the business. There are honestly more pros to setting up an LLC than cons.
Take Your Amazon Sales to a New Level
Creating an LLC will make your business look more legitimate and it will save you money in the long run. You will enjoy tax breaks that you would not otherwise get access to and your personal finances will be protected in the case that your business is sued.
If you are ready to take your financial planning and Amazon selling goals to new levels, you need to work with us to plan your financial future.
We have the know-how, tips, and tricks that can help you to create the financial security that you have always dreamed of. There is no shortage of amazing help and advice on our website and we can help you personally meet your goals, both big and small.
If you are ready to take your business and your finances to the next level, reach out to us today!