The U.S. is the largest ecommerce market in the world, and for international sellers, the opportunity is real. Setting up correctly, legally, financially, and operationally determines whether your expansion runs smoothly or creates problems you spend years untangling.
This is exactly where an international business advisor makes a difference. Rather than navigating unfamiliar tax structures, entity requirements, and compliance rules on your own, the right advisor gives you a clear path forward based on experience with sellers who have done this before.
AMZ Accountant works with international ecommerce sellers at every stage of U.S. expansion. Whether you are selling on Amazon FBA, running your own Shopify store, or selling across multiple platforms, the setup decisions you make early have a direct impact on your taxes, compliance, and ability to scale.
Choose The Right U.S. Business Entity As A Foreign Seller
The first decision you need to make is how your business will be structured in the U.S. This is not just a legal formality. It affects how you are taxed, how you open a bank account, and how U.S. platforms and payment processors treat your business.
An international business advisor helps you make this decision based on your home country, your goals, and the tax treaty implications that most sellers are not aware of.
LLC vs. C-Corp: What Foreign Ecommerce Sellers Need To Know
Most international ecommerce sellers form a U.S. LLC or a C-Corporation. Each has trade-offs depending on your home country, your revenue expectations, and your long-term goals.
An LLC is simpler to set up and maintain. For sellers from certain countries, it can be treated as a pass-through entity, meaning profits flow through to you personally rather than being taxed at the entity level.
However, LLC treatment varies significantly depending on how your home country classifies U.S. LLCs under its own tax code. Some countries treat a U.S. LLC as a corporation, which creates a risk of double taxation.
A C-Corporation is taxed at the entity level in the U.S., but it is often the cleaner structure for foreign sellers because it is universally recognized. It also makes it easier to raise capital, bring on investors, or eventually sell the business.
If you plan to use Amazon FBA at scale or work with U.S. wholesale buyers, a C-Corp can add credibility. Before you form anything, speak with an international business advisor who understands both U.S. tax law and the tax treaty between the U.S. and your home country.
Which U.S. State Should You Register In
Delaware and Wyoming are the two most common states for foreign sellers forming a U.S. entity. Delaware has a well-established legal framework and is preferred by investors. Wyoming has lower fees and no state income tax.
Your choice of state for formation does not have to match the state where you store inventory or operate. However, if you use Amazon FBA, your inventory will be distributed across multiple states, which creates sales tax obligations regardless of where you are incorporated.
What You Need To Form Your Entity
To register a U.S. business entity as a foreign national, you will need a registered agent in your chosen state, your personal identification documents, an Employer Identification Number (EIN) from the IRS, and, in most cases, a U.S. mailing address. You do not need to be physically present in the U.S. to form an entity or obtain an EIN.
Get Your EIN, Banking, And Payment Processing In Place
Once your entity is formed, the next step is to set up your financial infrastructure. This is where many international sellers hit friction, but the process is manageable if you approach it in the right order.
An international business advisor who works with ecommerce sellers regularly will have seen these friction points before and can help you move through them faster.
How To Get An EIN As A Non-U.S. Resident
An EIN is your business tax identification number in the U.S. You need it to open a bank account, file taxes, and register with sales tax authorities. Foreign nationals without a U.S. Social Security Number can apply for an EIN by submitting IRS Form SS-4 by fax or mail, or by calling the IRS international line directly.
The process typically takes a few days to a few weeks, depending on the method. Once you have your EIN, keep it secure. You will use it constantly.
Opening A U.S. Business Bank Account From Abroad
Traditional U.S. banks typically require an in-person visit to open a business account, which creates a barrier for foreign sellers. The practical alternatives have expanded significantly in recent years.
Mercury and Relay are two online business banking platforms that work well for foreign-owned U.S. entities. Both allow you to open an account remotely with your EIN, formation documents, and identification. They integrate cleanly with Shopify, Amazon, and accounting platforms like QuickBooks.
Having a true U.S. bank account matters because payment processors, Amazon Seller Central, and wholesale buyers all prefer or require one.
Setting Up Payment Processing For U.S. Sales
Stripe and PayPal both support foreign-owned U.S. entities. You will need your EIN and U.S. bank account details to complete setup. If you are selling on Amazon, your seller account will disburse directly to your U.S. bank account on a regular settlement schedule.
For Shopify sellers, Shopify Payments is available to U.S.-registered businesses regardless of where the owner lives, which simplifies checkout and reduces transaction fees.
Understand U.S. Sales Tax Before You Start Selling
Sales tax is one of the most misunderstood areas for international ecommerce sellers entering the U.S. market. Unlike VAT in Europe, U.S. sales tax is administered at the state level, and the rules differ significantly from state to state.
This is one of the areas where working with an international business advisor pays for itself fastest, because the penalties for getting it wrong compound quickly.
Economic Nexus: What It Means For Your Business
Following the 2018 South Dakota v. Wayfair Supreme Court decision, states can require online sellers to collect and remit sales tax even without a physical presence in that state. This is called economic nexus.
Most states trigger nexus at $100,000 in annual sales or 200 transactions within the state. Once you cross that threshold, you are required to register with the state tax authority, collect the correct sales tax rate, and remit it on a regular filing schedule.
As an international seller using Amazon FBA, your inventory is stored in Amazon’s warehouses across multiple states, which can also create physical nexus obligations independent of your sales volume.
How To Stay Compliant Without Drowning In Admin
Managing sales tax manually across dozens of states is not realistic for a growing ecommerce business. Tools like TaxJar and Avalara automate the calculation, collection, and filing process and integrate directly with Shopify, Amazon, and WooCommerce.
Registering for sales tax in every state where you have nexus is a legal requirement, not optional. Sellers who ignore this risk face back taxes, penalties, and interest that can reach back several years.
VAT And Import Taxes On Goods Entering The U.S.
If you are shipping goods into the U.S. from your home country, customs duties and import taxes apply. The threshold for de minimis exemption in the U.S. is $800, meaning individual shipments under that value typically clear customs without duty. Above that threshold, duties apply based on the product’s Harmonized Tariff Schedule code.
For FBA sellers sending bulk inventory to Amazon warehouses, import duties are part of your landed cost calculation and should be factored into your pricing and margin analysis from the beginning.
Set Up U.S.-Compliant Accounting From Day One
Your U.S. entity needs its own accounting records, separate from your home country’s books. U.S.-based accounting is the foundation for filing taxes correctly, understanding your profitability, and staying audit-ready.
A good international business advisor will insist on getting this right before revenue starts flowing, because retroactive cleanup is far more expensive than doing it correctly from the start.
Use QuickBooks Online With A U.S. Chart Of Accounts
QuickBooks is the most widely used accounting platform for small to mid-sized ecommerce businesses in the U.S. Set it up with a chart of accounts that reflects how U.S. ecommerce actually works, with separate accounts for each sales channel, payment processor fees, shipping income, sales tax collected, and marketplace fees.
Do not use a generic template. Build your chart of accounts to match the way money actually flows through your business from day one.
Connect Your Sales Channels And Reconcile Properly
Tools like A2X connect your Amazon and Shopify accounts to QuickBooks and post clean summary journal entries for each settlement period. This approach keeps your books clean, makes reconciliation straightforward, and ensures your revenue figures are accurate.
Reconcile your U.S. bank account monthly. Every dollar that hits your account should be traceable back to a sale, a refund, or a fee. Clean books are not just good practice. They are what your accountant needs to file your U.S. tax return correctly.
Understand Your U.S. Tax Filing Obligations
Foreign-owned U.S. LLCs and C-Corporations have annual federal tax filing obligations. LLCs with a single foreign owner file Form 5472 and Form 1120 as a pro forma return. C-Corporations file a standard Form 1120.
Failing to file these filings carries significant penalties, up to $25,000 per missed Form 5472. Many international sellers are unaware of these requirements until they are already out of compliance. Working with a U.S. accountant who specializes in international ecommerce is not optional at this stage. It is essential.
Navigate Amazon FBA And U.S. Marketplace Requirements
Amazon is the dominant sales channel for most international sellers entering the U.S. market. Getting your Amazon Seller Central account set up correctly as a foreign seller requires attention to a few specific requirements.
Setting Up Amazon Seller Central As A Foreign Seller
To sell on Amazon U.S. as a foreign entity, you need a valid government-issued ID, a U.S. bank account for disbursements, a credit card that can be charged in U.S. dollars, and a U.S. phone number or the ability to receive verification calls.
Amazon has tightened its verification process in recent years, so having your entity documents, EIN, and bank account ready before you begin the registration process will reduce delays.
FBA Inventory, Customs, And Prep Requirements
Sending inventory to Amazon FBA warehouses in the U.S. means your goods must clear U.S. customs, meet Amazon’s labeling and packaging requirements, and be shipped to the fulfillment centers Amazon designates. Using a licensed U.S. customs broker simplifies the import process significantly.
Factor in freight costs, customs duties, Amazon FBA fees, and return rates when modeling your U.S. margins. What works profitably in your home market may need pricing adjustments for the U.S.
What An International Business Advisor Actually Does For Ecommerce Sellers
Many sellers assume an international business advisor only handles high-level strategy. In practice, the right advisor is involved in the details that determine whether your U.S. setup actually works.
An international business advisor with ecommerce experience helps you choose and form the right entity, navigate EIN registration and banking setup, build a compliant accounting structure, understand your sales tax obligations across states, and stay on top of annual filing requirements.
They also serve as the connective tissue among your legal, tax, and operational decisions, ensuring those pieces work together rather than creating conflicts down the line.
For ecommerce sellers specifically, the advisor role also includes understanding how platforms like Amazon and Shopify affect your compliance picture. That platform-level knowledge is what separates a generalist advisor from one who is genuinely useful for your business.
The value compounds over time. An international business advisor who knows your structure, channels, and growth trajectory can flag risks before they become problems and help you make smarter decisions as you expand into new markets or add new sales channels.
Build The Right Team And Advisory Support
Expanding into the U.S. as an international ecommerce seller is not a solo project. The complexity spans legal, tax, accounting, logistics, and platform compliance, and mistakes in any one area can affect the others.
AMZ Accountant works specifically with ecommerce sellers navigating U.S. expansion. We serve as the international business advisor your operation needs, providing guidance on entity setup, QuickBooks configuration, sales tax compliance, Amazon accounting, and annual tax filings for foreign-owned U.S. entities.
If you are setting up for the first time or trying to clean up an incorrect setup, we can help you get it right. Book your free consultation.
Frequently Asked Questions
Do I need a U.S. LLC to sell on Amazon in the United States?
You do not legally need a U.S. entity to sell on Amazon U.S., but having one provides liability protection, simplifies banking, and makes tax compliance cleaner. Most serious sellers form a U.S. LLC or C-Corp before scaling.
Can I open a U.S. bank account without visiting the United States?
Yes. Online banking platforms like Mercury and Relay allow foreign-owned U.S. entities to open business accounts remotely using your EIN and formation documents.
When does sales tax apply to my U.S. ecommerce sales?
Once you exceed $100,000 in sales or 200 transactions in a state, economic nexus typically applies, and you are required to collect and remit sales tax in that state. Using Amazon FBA may also create nexus through physical inventory storage.
What U.S. tax forms does a foreign-owned LLC need to file?
A foreign-owned single-member LLC must file Form 5472 and a pro forma Form 1120 annually with the IRS. Penalties for non-compliance are severe, so working with a specialist accountant is strongly recommended.
How do I handle import duties when sending inventory to Amazon FBA in the U.S.?
Shipments above $800 are subject to U.S. customs duties based on the product’s tariff code. Work with a licensed customs broker to manage the import process and factor duty costs into your margin calculations.
Do I need an international business advisor if I already have a local accountant?
A local accountant handles your home country obligations, but they are rarely equipped to navigate U.S. entity structures, IRS filing requirements, or ecommerce platform compliance. An international business advisor bridges that gap and makes sure both sides of your operation are handled correctly.