Starting an Amazon business can be exciting, but before you can list your first product, there are a few important steps to take. One of the most common questions new sellers ask is whether they need a Tax ID (EIN) to start selling on Amazon.
The short answer is yes—Amazon requires every seller to provide tax information, whether that’s a Social Security Number (SSN) for individuals or an Employer Identification Number (EIN) for businesses. This helps with IRS reporting, account verification, and fraud prevention.
In this guide, we’ll explain why a Tax ID is necessary for Amazon sellers, the registration process to get one, and what options exist for individuals, LLCs, and international sellers.
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Is A Tax ID Necessary For Selling on Amazon?
The answer to the question is yes – you will need a Tax ID (EIN) to sell on Amazon. Whether you’re an LLC, a sole proprietor, or a corporation, you will need a Tax ID to start selling through an LLC Amazon Seller account. So, regardless of whether you make a few dollars or a million, all businesses that earn money through such an account must have essential documentation and tax information.
When you register for the Amazon Seller program, you will be asked to finish a tax interview. During this process, you must be ready with your Social Security Number (SSN) or Employer Identification Number (EIN).
Why Is A Tax ID A Necessity For Amazon?
1. For Legal Reporting: Amazon must collect tax details from all sellers and share them with the IRS when required. In the U.S., you can give either your SSN (if you are selling as an individual) or your EIN (if you are selling as a business). If your account crosses $20,000 in payments and 200 transactions in a year, Amazon will issue you a 1099-K form.
2. To Verify Sellers: Your tax ID is used to confirm your identity and whether you’re selling as an individual or a registered business. This helps Amazon keep the platform safe and prevent fraud. Importantly, not everyone needs an EIN—an SSN is enough for individual sellers.
3. For Imports and Customs: If you are an international seller, your tax ID (or a customs number) is needed when shipping goods into the U.S. Amazon does not act as the Importer of Record. Instead, you or your broker handles that, and your tax ID helps clear goods through customs.
4. For Account Policy and Fraud Prevention: Amazon allows only one seller account per region unless you get approval for more. It uses tax IDs (along with bank info and IP addresses) to spot and block duplicate or suspicious accounts. If one account is suspended, any linked accounts may also be affected.
Registration Process For A Tax ID
Whether you have formed an LLC or are a sole proprietor, registering for a business Tax identity is the same for all sellers in the U.S. Below is a detailed explanation of the steps you must follow to get an EIN.
1. Checking the Requirements and Rules
The first step is to visit the IRS website to look at the IRS requirements and regulations. This will further aid you in determining if you’re eligible. If you’re in the U.S. territory or the United States, you can register with your ITIN or SSN for an EIN.
2. Scanning For Necessary Documents
Before starting the application process, ensure you are ready with all the information and documents. You can finish the entire report in a single session. This further implies that an inactive status of over 15 minutes will return you to zero.
Starting an application from the beginning means providing information about the business, the legal owner of the online business, and about you.
3. Proceeding To The Application
Once you have the necessary documents, you can proceed with your application process free of cost. After completing and submitting it, you’ll receive an EIN in no time, provided your input details are correct. You can form a sole proprietor doing business as a company or create an LLC through this number.
Can I Sell Products Online Without Registering For Business?
If you are selling on Amazon, you must provide tax information to create your Seller account. This can be your SSN/ITIN (for an individual account) or EIN (for a business account).
Furthermore, each state has business requirements, including obtaining a business license or tax ID number. Understanding and complying with all relevant regulations before selling any products online is important.
Keep in mind that Amazon handles sales tax collection and remittance under marketplace facilitator laws, so sellers usually don’t need their own sales tax permit for Amazon sales. However, if you sell through other channels, you may still need one.
Conclusion: You Will Need A Tax ID to Sell on Amazon
In this article, we answered the question regarding the necessity of a tax ID for Amazon sellers and shared that it is totally worth selling on the platform. We further shared the registration process for a Tax ID through which one must go to begin selling on Amazon in the United States.
Unless you plan to sell a service, you must possess a sales tax ID, a business license, and a tax ID number to begin selling on Amazon.
Since requirements can vary depending on your business type, the products you sell, and whether you are a U.S. or non-U.S. seller, it’s important to review both IRS rules and Amazon’s tax policies before registering.
FAQs
Amazon mandates that all sellers finish the United States Tax Identity Information interview. Thus, you can only sell products on Amazon with a tax I.D. number.
IRS or Internal Revenue Service rules demand that the U.S. payment processors submit a Form 1099-K to report the payment volume data or the unadjusted yearly gross sales for consumers who have over $20,000 in gross payment volume and over 200 transactions. Since Amazon Payments meets both thresholds, it reports to the IRS.
Amazon offers a program called Amazon Tax Exemption Program that allows tax-exempt purchases for sales by participating independent 3rd party sellers, Amazon, and affiliates.
No, you do not need a Social Security Number (SSN) to sell on Amazon. However, if you are a non-US seller, you must provide your tax identification number (TIN). This can include an employer identification number (EIN) or a value-added tax (VAT) number. You will also be required to provide additional documentation to verify your identity.
Yes, you can get an Employer Identification Number (EIN) even if you don’t have a social security number. The IRS does not require a social security number to obtain an EIN application.
Instead, the IRS requires that you provide a valid passport or other government-issued identification documents. Additionally, the applicant must be able to prove that they are located within the United States or any U.S. territory.
I’m a professor, serial entrepreneur and e-commerce expert with a passion for creating successful online business models. After achieving huge success in the Amazon FBA business, I decided to make it my mission to help my fellow sellers do the same through enjoy-aiia.com .