If you’re a newer seller on Amazon and things are starting to take off, you might
Since you don’t need to do much to start selling on Amazon, it’s possible that you haven’t created a business entity and you might still be selling out of your personal bank account.
If sales are starting to pick up and you’re going to be getting serious about selling on Amazon, then getting an official business entity, an EIN, and a business bank account will keep your financials clean and make your accountant happy.
Registering an LLC for your Amazon Business
Every state has a different process for registering an LLC. While there are many sites that will do the work for you to get your LLC created, the cheapest method is typically going through your state’s official site to register your LLC. If it appears complicated, you can usually find a YouTube video for someone going along step-by-step for the state you’re in.
After you get your LLC, it’s recommended to get an EIN.
Getting an EIN for your LLC
Now that you have an LLC, you should definitely get an EIN. An EIN is like the social security number for your business, and is used constantly when you’re making big purchases for your business.
Thankfully, you can get an EIN directly from the IRS official website, and you can obtain it in a matter of minutes for free.
Getting a business bank account
Once you have all your business entity stuff sorted out, you can get a business bank account. The most simple place to get this done will be the same bank you do your personal banking. They will all have options for opening a business bank account, and you can typically get a business credit card when you open an account.
Switching your tax identity and bank account info on your Seller account
Once you have your LLC, your EIN, and your business bank account, you can switch the existing information on your Amazon Seller Central settings.
Important Note: If you created an LLC as your business entity and you are the only member of the LLC, then you do not use your EIN on Amazon Seller Central, you will continue to use your Social Security Number (SSN).
If you created an S-Corp, C-Corp, or got an S/C-Corp election for your LLC, then you can use your EIN instead of your SSN.
You can find your Tax information to update in the Seller Account Information section:
Also, within Seller Account Information, you can switch to your business account under Deposit Methods.
Once you update these 2 sections, you’ll be fully operating as a business on Amazon.
Summary: Updating Your Amazon Seller Central Tax and Business Information
- Register your LLC on your specific State’s website. Look up YouTube videos for step-by-step guides.
- Get an EIN on the IRS.gov site.
- Get a business bank account (I recommend from the same place you have your personal account)
- Extra: Get a business credit card for points rewards and business expenses
- Update your bank account and business entity information on Seller Central (LLCs with only one member will keep using Social Security Number on Amazon’s Tax info)