US LLC for E-commerce Sellers (Non-Resident Guide)
If you sell on Amazon or Shopify from outside the US, a US LLC can unlock better banking, Stripe access and marketplace trust, but it also brings tax and compliance rules you need to understand before you incorporate.
Why e-commerce sellers form a US LLC
Most European Amazon and Shopify sellers do not need a US LLC to sell to US customers. You can sell as an individual or through your home country company. But a US LLC solves three practical problems that come up constantly once volume grows.
- Payments. Stripe, PayPal and many US-based apps are far smoother to set up with a US LLC, US EIN and a US business bank account than with a foreign entity.
- Banking. A US LLC lets you hold and spend US dollars without constant conversion fees, and gives you access to US business credit cards for ad spend and inventory.
- Trust and logistics. Some suppliers, 3PLs and marketplaces treat a US-registered business more favourably, and a US LLC is a disregarded entity for tax purposes, so profits still flow to you personally, not taxed twice.
None of this removes your home country tax obligations. A US LLC is a tool for operations and banking, not a way to avoid tax where you live.
How the LLC actually gets set up
The mechanics are the same for e-commerce as any other non-resident LLC, but a few choices matter more for sellers.
Choosing a state
Wyoming is the common default for non-resident founders: low annual fees, no state income tax, and a simple annual report. Delaware is popular if you plan to raise investment later, but for a bootstrapped Amazon or Shopify business it usually adds cost without benefit. Your formation state has no bearing on where you owe sales tax, that is determined by where your customers and inventory are, which we cover below.
EIN and ITIN
You need an EIN (Employer Identification Number) to open a bank account, register with payment processors, and file your annual tax paperwork. Non-residents apply using Form SS-4 by fax or mail (no SSN required), or by phone as a last resort. This is often the slowest step, so build in a few weeks.
An ITIN (Individual Taxpayer Identification Number) is a separate number for you personally, used when you need to file a personal US tax return. It does not require a US visa; it exists specifically for people who are not eligible for a Social Security Number. Most single-member LLC owners only need an ITIN once they must file certain personal returns or claim tax treaty benefits, not just to sell online.
This is the part of the process Founders Credit handles end to end for founders: LLC formation, EIN, ITIN when needed, and the bank account, so you are not chasing IRS fax lines and bank compliance teams on your own.
Sales tax nexus basics
This is the area most new sellers get wrong, so it is worth being precise.
Economic nexus means once your sales into a state cross a threshold (commonly around $100,000 in sales or 200 transactions a year, thresholds vary by state), you may need to register and collect sales tax there, even with zero physical presence.
Physical nexus means you have a real presence in a state, most often because Amazon FBA stores your inventory in a warehouse located there. Fulfilment by Amazon can create nexus in multiple states without you ever choosing to operate there.
Marketplace facilitator laws change who collects
Almost every state now has marketplace facilitator laws. Under these, Amazon (and Etsy, eBay and similar marketplaces) is required to calculate, collect and remit sales tax on your behalf for sales made through their platform. You still need to understand where you have nexus, but you are usually not the one filing sales tax returns for those marketplace sales.
Shopify is different. Shopify is your own store, not a marketplace facilitator in the same way, so for direct Shopify sales the responsibility to register, collect and remit sales tax in states where you have nexus sits with you.
| Channel | Who typically collects sales tax | Your responsibility |
|---|---|---|
| Amazon FBA/FBM | Amazon, under marketplace facilitator laws | Track where FBA inventory creates physical nexus |
| Shopify (direct) | You | Register, collect and remit in nexus states |
| Etsy, eBay | Platform, under marketplace facilitator laws | Monitor thresholds, keep records |
A sales tax specialist or automated tool (TaxJar, Avalara, Quaderno) is worth the cost once you sell direct-to-consumer at meaningful volume. This guide is not a substitute for that setup.
Banking and cards for your LLC
Once you have your LLC and EIN, you can open a US business bank account remotely with providers like Mercury, Wise or Relay, all of which are used to onboarding non-resident founders and do not require a US visit. You will typically need your formation documents, EIN confirmation letter, and a description of your business activity. From there, US business debit and credit cards become available, which is useful for paying suppliers, ad platforms and software in dollars without constant FX conversion.
Getting Stripe to work for you
Stripe is one of the biggest reasons non-resident sellers want a US LLC in the first place. With a US LLC, EIN, US business address and a US bank account, most founders can apply for a standard US Stripe account rather than being routed through a home-country Stripe account with worse payout terms and higher friction for US customers. Approval still depends on Stripe's own risk review, so keep your business description, website and banking details consistent across every application.
Annual compliance you cannot skip
A foreign-owned single-member LLC is treated as a disregarded entity for US tax purposes, but it still has an annual information filing obligation even with zero income. You must file Form 5472 together with a pro forma Form 1120 every year the LLC exists. This is an information return, it does not calculate or pay tax on its own, but the penalty for not filing on time is $25,000 per form, per year. Alongside this, most states require an annual report and franchise fee to keep the LLC in good standing. Missing either is the most common (and most expensive) mistake non-resident sellers make.
Glossary
EIN: Employer Identification Number, the tax ID for your LLC, required for banking and filings.
ITIN: Individual Taxpayer Identification Number, issued to individuals ineligible for an SSN, used for personal tax filings.
Disregarded entity: IRS treatment where a single-member LLC's activity is reported as the owner's, not taxed separately at the entity level.
Form 5472: Annual information return required for foreign-owned single-member LLCs, filed with a pro forma 1120.
Economic nexus: Sales tax obligation triggered by sales volume or transaction count in a state, regardless of physical presence.
Marketplace facilitator law: State law requiring platforms like Amazon to collect and remit sales tax on sellers' behalf.
Registered agent: A person or company with a physical address in your formation state, required to receive legal and state notices for your LLC.
A US LLC makes your e-commerce business easier to bank, easier to pay through Stripe, and easier to scale. It does not remove your sales tax homework or your home country tax filing.
Founders Credit sets up the LLC, EIN, ITIN, US bank account and business cards as one done-for-you process, so you can focus on the store while the US paperwork is handled correctly from day one.
Frequently asked questions
Do I need a US LLC to sell on Amazon as a non-resident?
No, Amazon allows non-US sellers to register as individuals using their home country details and a W-8BEN form. A US LLC becomes useful once you want US banking, better Stripe access, or simpler accounting for US-sourced revenue.
Will forming my LLC in Wyoming reduce the sales tax I owe?
No. Your formation state has no effect on sales tax. Sales tax obligations are based on where your customers and inventory are located, known as economic and physical nexus, not where your LLC is registered.
Does Amazon collecting sales tax mean I have no sales tax obligations at all?
For sales made through Amazon in states with marketplace facilitator laws, Amazon generally handles collection and remittance. You may still need to register in states where you have nexus, and you are fully responsible for sales tax on any direct Shopify or other non-marketplace sales.
Do I need an ITIN just to open a Stripe or bank account for my LLC?
Usually not. Banks and Stripe typically work from your LLC's EIN rather than your personal ITIN. An ITIN becomes necessary when you personally need to file a US tax return or claim a tax treaty benefit.
What happens if I forget to file Form 5472 for my LLC?
The penalty is $25,000 per form for each year it is not filed on time, even if the LLC had no income. This applies to essentially every foreign-owned single-member LLC, so it should be treated as a fixed annual task, not optional paperwork.
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