LLC Company Formation
Many marketplace sellers form a limited liability company (LLC) before they open an Amazon or Walmart account. It separates business and personal finances, and some marketplace requirements are easier to meet with a registered business.
This page explains the main steps, and AMZgetway can guide you through them. We are not a law firm, so for legal or tax advice, speak to a qualified professional.
What is an LLC?
An LLC is a business structure that can limit the owners' personal liability for business debts and claims. By default, profits are reported on the owners' personal tax returns, although other tax treatments are possible.
Benefits of forming an LLC
- Limited liability: in general, your personal assets are separated from the company's debts. This protection is not absolute.
- Credibility: a registered business name looks more established to suppliers, banks and marketplaces.
- Flexibility: LLCs can have simpler management and tax options than corporations.
Steps to form an LLC
Rules differ by state. In general, the steps are:
- Choose a state and a business name, and check the name is available.
- Appoint a registered agent for your state.
- File the Articles of Organization with the state and pay the filing fee.
- Draft an operating agreement. Not every state requires one, but it sets out how the company is run.
- Get an Employer Identification Number (EIN) from the IRS.
- Open a business bank account to keep your finances separate.
- Check state and local licenses, tax registrations and annual filing requirements.
What to know before you start
Filing fees and annual requirements vary by state, and the right state depends on where you live and operate. An LLC does not remove tax obligations, and some sellers will want advice from an accountant.
Once your LLC and EIN are in place, we can help you register your Amazon or Walmart seller account.