How to Register Your Business for Amazon FBA

WHOLESALE BUSINESS FINANCE · 2026

How to Register Your Business for Amazon FBA — LLC vs Sole Trader USA and UK

By Brandhunterz Ltd | Company No: 15342697 | 13 minute read

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One of the first questions every new Amazon FBA seller faces is whether to register a formal business entity before starting — or whether to begin as a sole trader or individual seller and register later once revenue is established. The answer matters more than most new sellers realise. The business structure you choose affects your personal liability protection your tax obligations your ability to open business bank accounts your credibility with wholesale suppliers and the maximum credit facilities available to fund your growth. Getting this decision right from the start saves you significant time money and administrative complexity later.

We are Brandhunterz Ltd — a UK registered wholesale sourcing company (Company No: 15342697) — and in this complete guide we walk you through exactly how to register your business for Amazon FBA across both the USA and UK markets — comparing LLC versus sole proprietorship for US sellers and Limited Company versus sole trader for UK sellers — with honest assessments of costs timelines and which structure is right for your stage of business.

💡 Quick Summary

For USA sellers forming an LLC is strongly recommended over operating as a sole proprietor — it costs $50 to $500 to register depending on your state and provides essential liability protection separating your personal assets from your business. For UK sellers registering a Limited Company through Companies House costs just £12 online and provides the same liability protection plus significantly greater credibility with wholesale suppliers. Both structures should be registered before opening your Amazon Seller Central account to ensure your business name matches your bank account and seller profile from day one.

Do You Need to Register a Business to Sell on Amazon?

Technically Amazon allows individuals to sell on its marketplace without a formally registered business entity. You can create an Amazon Seller Central account as an individual sole proprietor in the USA or as a sole trader in the UK without registering a company. However for Amazon FBA wholesale sellers specifically — who are placing wholesale orders with trade suppliers building ongoing brand relationships and handling significant transaction volumes — operating without a registered business entity creates several significant disadvantages that make formal registration strongly advisable from day one.

Factor	Individual / Sole Trader	Registered Business Entity
Personal Liability Protection	None — personal assets at risk	Protected — business liability separate
Wholesale Supplier Credibility	Low — many suppliers require business registration	High — professional business entity
Business Bank Account Access	Limited options available	Full range of business accounts available
Business Credit Facilities	Personal credit only	Business credit lines and cards available
Tax Efficiency	All profit taxed as personal income	More tax-efficient structures available
Amazon Ungating Applications	Possible but weaker documentation	Stronger — registered business invoices accepted

Business Registration — USA Options

Option 1 — Sole Proprietorship (Not Recommended for FBA Wholesale)

A sole proprietorship is the default business structure for individuals who start a business without formally registering an entity. There is no registration required — you simply begin operating and report your business income on your personal tax return using Schedule C. While this sounds attractive for its simplicity it provides zero liability protection. Every business debt every supplier dispute and every customer claim becomes a personal liability — meaning your personal bank account home and savings are at risk if your business faces legal or financial challenges.

For Amazon FBA wholesale sellers operating as sole proprietors also creates credibility problems with major wholesale distributors and brands — many of whom require proof of business registration before opening a trade account. We do not recommend operating as a sole proprietor for any serious Amazon FBA wholesale business.

Option 2 — LLC (Limited Liability Company) — Recommended for USA

An LLC is the most popular business structure for Amazon FBA sellers in the USA — and for good reason. It combines liability protection — separating your personal assets from your business obligations — with pass-through taxation where profits are taxed as personal income rather than at a separate corporate rate. LLCs are simple to maintain compared to corporations require minimal annual paperwork and are universally accepted by wholesale suppliers business bank accounts and Amazon Seller Central.

LLC Formation — Key Facts	Details
Registration Cost	$50 to $500 depending on state — average $100 to $150
Where to Register	Your home state — or Delaware/Wyoming for lower fees and privacy
Processing Time	1 to 5 business days online — same day in some states
EIN Required	Yes — free to obtain from IRS after LLC formation
Annual Maintenance	Annual report filing $0 to $300 depending on state
Taxation	Pass-through — profits taxed as personal income on Schedule C or K-1
Liability Protection	Yes — personal assets protected from business liabilities

How to Form an LLC — Step by Step (USA)

Choose Your State and LLC Name

Most new sellers register in their home state for simplicity. Delaware and Wyoming are popular alternatives for their lower fees privacy protections and business-friendly laws — but require a registered agent in that state which adds $50 to $100 per year. Choose a business name and verify it is available in your chosen state’s business name database before proceeding.

File Articles of Organization

File your Articles of Organization with your state’s Secretary of State office — this is the formal document that creates your LLC. Most states allow online filing through their Secretary of State website. The filing fee ranges from $50 (Kentucky) to $500 (Massachusetts) with most states charging $100 to $150. Processing typically takes 1 to 5 business days for standard filing with expedited same-day options available in many states for an additional fee.

Obtain Your EIN From the IRS

Your Employer Identification Number (EIN) is your LLC’s federal tax identification number — the equivalent of a Social Security Number for your business. You need it to open a business bank account register for Amazon Seller Central and file business taxes. Apply for your EIN free of charge through the IRS website at irs.gov/ein — the online application takes 10 minutes and your EIN is issued immediately upon completion.

Create an Operating Agreement

An LLC Operating Agreement documents the ownership structure management responsibilities and operating procedures of your LLC. While not required in all states it is strongly recommended — it provides legal clarity on ownership strengthens your liability protection and is often required by banks and wholesale suppliers when applying for business accounts or trade credit. For a single-member LLC the operating agreement is a simple document you can create yourself using free templates available online.

Open Your Business Bank Account and Register Seller Central

With your Articles of Organization and EIN in hand open your business bank account using your LLC name. Then register your Amazon Seller Central account using the same LLC name — ensuring the business name matches exactly across your bank account Seller Central registration and all wholesale supplier applications. Consistent naming across all platforms prevents administrative problems that are difficult to untangle once your business is active.

Business Registration — UK Options

Option 1 — Sole Trader (Simplest — Limited Protection)

Operating as a sole trader in the UK requires simply registering for Self Assessment with HMRC — a straightforward process that can be completed online in 15 minutes. There is no company registration required no Companies House filing and no annual accounts to submit. All business income and expenses are reported on your annual Self Assessment tax return. However like US sole proprietorships the UK sole trader structure provides zero liability protection — all business debts and legal liabilities are your personal responsibility.

For FBA wholesale sellers the sole trader structure also creates the same credibility gap with major wholesale distributors as the US sole proprietorship — many established brands and distributors specifically require a Companies House registration number before opening a trade account. Brandhunterz Ltd itself is registered at Companies House (Company No: 15342697) — a registration that is visible to every brand and distributor we approach for wholesale accounts and that immediately establishes credibility as a legitimate trading business.

Option 2 — Private Limited Company (Ltd) — Recommended for UK

A Private Limited Company (Ltd) is the UK equivalent of a US LLC — the most popular business structure for serious Amazon FBA sellers in the UK. It provides full liability protection keeping your personal assets completely separate from your business obligations and offers significant tax efficiency advantages at higher income levels through the ability to pay yourself a combination of salary and dividends that is more tax-efficient than sole trader income tax rates.

Limited Company Formation — Key Facts	Details
Registration Cost	£12 online through Companies House — one of the cheapest in the world
Where to Register	Companies House — gov.uk/register-a-company
Processing Time	Same day online — usually within hours
Company Number	Issued immediately — publicly searchable on Companies House
Annual Requirements	Annual accounts Confirmation Statement Corporation Tax return
Corporation Tax Rate	19% on profits up to £50,000 — 25% on profits above £250,000
Liability Protection	Full — personal assets completely separate from company

How to Register a Limited Company — Step by Step (UK)

Choose Your Company Name

Check your desired company name is available using the Companies House name availability checker at find-and-update.company-information.service.gov.uk. The name must be unique must end in Limited or Ltd and cannot be identical or too similar to an existing registered company name. Choose a name that reflects your business professionally — it will appear on all wholesale invoices supplier applications and Amazon Seller Central.

Go to gov.uk/register-a-company and complete the online registration form. You need to provide your company name registered office address (must be a UK address — can be your home address) details of all directors and shareholders and your Standard Industrial Classification (SIC) code — use 47910 for retail via mail order or online for Amazon selling. Pay the £12 registration fee by debit or credit card and your company is typically registered within hours.

Within 3 months of starting to trade you must register your new company for Corporation Tax with HMRC. Do this online at gov.uk using your company’s Unique Taxpayer Reference (UTR) which HMRC sends by post to your registered office address within 14 days of company formation. You will also need to register for VAT when your taxable turnover exceeds the current VAT registration threshold — or voluntarily at any point before reaching this threshold if beneficial.

Open Business Bank Account and Register Amazon Seller Central

Use your Certificate of Incorporation and Company Number to open your business bank account in your company name. Then register your Amazon Seller Central account using exactly the same company name — the name must match your bank account name for disbursements to process correctly. Include your Companies House number in all wholesale supplier applications and correspondence — it immediately establishes your credibility as a legitimately registered trading business.

USA vs UK — Business Registration Comparison

Factor	USA — LLC	UK — Limited Company
Registration Cost	$50 to $500	£12 — one of cheapest globally
Processing Time	1 to 5 days	Same day — usually hours
Liability Protection	Yes	Yes
Tax Structure	Pass-through to personal return	Corporation Tax 19 to 25%
Annual Compliance	Annual report filing varies by state	Annual accounts Confirmation Statement CT return
Public Registration	Varies by state	Yes — fully public on Companies House

Frequently Asked Questions

Can I Register a US LLC as a Non-US Resident?

Yes — non-US residents including UK sellers can form a US LLC without physically being in the USA. Wyoming and Delaware are the most popular states for non-resident LLC formation due to their low fees no state income tax for LLCs with no in-state business activity and strong privacy protections. You will need a registered agent in your chosen state which typically costs $50 to $100 per year and you can obtain an EIN as a foreign person using IRS Form SS-4 by mail or fax — the process takes 4 to 6 weeks but is worth pursuing for UK sellers who want to access the Amazon USA marketplace with a US business entity.

When Should I Upgrade From Sole Trader to Limited Company in the UK?

In the UK registering a Limited Company from day one is strongly recommended for Amazon FBA wholesale sellers rather than starting as a sole trader and upgrading later. The registration cost is only £12 the process takes hours and the credibility advantage with wholesale suppliers is immediate. However if you started as a sole trader the typical tax and liability threshold where incorporation becomes financially beneficial is around £30,000 to £40,000 in annual profit — at which point the Corporation Tax rate becomes more efficient than income tax on sole trader profits. Consult an accountant familiar with ecommerce businesses to confirm the optimal timing for your specific situation.

Do I Need a Separate Amazon Account for My LLC vs Personal Account?

Amazon’s terms of service allow only one Seller Central account per individual or business entity in each marketplace — with exceptions for sellers who can demonstrate a legitimate business reason for multiple accounts. If you previously had a personal Amazon seller account and now want to operate as an LLC you should contact Amazon Seller Support to transfer your existing account to your new business entity rather than creating a new account — which could violate Amazon’s one account policy and result in suspension of both accounts.

Do Wholesale Suppliers Require Proof of Business Registration?

Many established wholesale distributors and brand owners require proof of business registration before opening a trade account — particularly for gated categories on Amazon where they want to ensure they are supplying legitimate businesses rather than resellers. For UK sellers your Companies House registration number is the standard proof required. For US sellers your LLC Articles of Organization or EIN confirmation letter serve this purpose. Having your registration documents ready to share with wholesale suppliers from day one removes a potential barrier to getting your first trade accounts approved quickly.