Whether you need an Amazon EIN number or not depends on your personal and business situation, with considerations for both U.S. and international sellers.
In this concise guide, we’ll help you determine the importance of EINs for your unique circumstances and ensure you’re well-equipped to navigate the world of Amazon selling.
We’ll begin by discussing the essentials of EINs and why they’re important in the Amazon ecosystem. Then, we’ll guide you through the process of obtaining an EIN for U.S. citizens and global sellers alike.
With this information, you’ll be well-equipped to take your e-commerce journey to new heights. Let’s dive in and learn all about Amazon EINs!
Quick Summary:
- Amazon EIN Misconception: There’s no such thing as an “Amazon EIN.” You’ll use the EIN (Employee Identification Number) issued by the IRS for tax identification.
- EIN Requirement: Amazon mandates that professional sellers provide an EIN, but individual sellers can start with a Social Security Number.
- U.S. Sellers: If you have employees, operate as a partnership or a corporation, or meet other IRS criteria, you’ll need an EIN to sell on Amazon.
- Non-U.S. Sellers: You’ll need a U.S. Tax Identification Number (TIN). Depending on tax treaties between the U.S. and your country, you might also use a local TIN.
- Single-Member LLCs: If you’re the sole member of an LLC, you can use your Social Security Number unless you’ve elected S-Corp or C-Corp status.
- How to Get an EIN: The process is generally free and can be done online through the IRS website.
- Financial Consultation: Always consult an accountant to understand your unique tax obligations when setting up your business on Amazon.
What is Amazon EIN?
First things first, there is no such thing as Amazon EIN. Because many sellers hear about EIN or Employer Identification Number for the first time after being a seller on Amazon, they simply refer to it as your Amazon EIN. The EIN, or the Employer Identification Number, is a Federal Tax ID Number that the Internal Revenue Service uses to track business activities for taxation.
EIN is also known as FEIN (Federal Employer Identification Number). It is a nine-digit unique number in the format XX-XXXXXXX. When queried for their Taxpayer Identification Number, businesses provide this number. This is a requirement for an Amazon employer who hires workers or staff for his or her business.
Anyone else who needs an EIN? Amazon requires every professional seller on its platform to provide an EIN before selling. There is no particular EIN for Amazon sellers. They can supply the EIN that the IRS issued for them.
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What Tax Information Does Amazon Need?
Let’s start with the basics. When you’re setting up a business on Amazon, or even if you’re an individual seller, you’ll need to provide some crucial tax info. This helps Amazon comply with tax regulations, and it’s essential for you as well. Here’s a rundown of the info you’ll typically need to provide:
For U.S. Persons or Businesses:
- Social Security Number (SSN) or Employer Identification Number (EIN): This is the foundational piece. If you’re a sole proprietor, your SSN will usually suffice. For an LLC or corporation, you’ll want to use your EIN.
- Full Legal Name or Business Name: Make sure this matches the name associated with your SSN or EIN.
- Address: Amazon wants to know where you’re operating from. This should be the address you’ve used to register your business or your personal address for sole proprietors.
- Form W-9: This form confirms the details mentioned above. Amazon will usually provide an electronic W-9 for you to complete during the seller account setup process.
For Non-U.S. Persons or Businesses:
- Tax Identification Number (TIN): This international tax identification number is the equivalent of the SSN or EIN.
- Full Legal Name or Business Name: Same drill—this should match the name associated with your TIN.
- Address: Your physical business or personal address.
- Form W-8BEN or W-8BEN-E: Non-U.S. persons or entities will need to complete one of these forms to confirm their status and claim any applicable treaty benefits.
- Bank Account Information: Amazon may also require you to provide international banking details, depending on your country.
Do I need an Amazon Employer Identification Number?
Do I need an EIN? According to the IRS website, if you satisfy any of the following conditions, you will need to obtain an EIN or Employer Identification Number:
- You have employees and authorities are expected to find employer tax ID number as proof.
- You operate your business as a partnership or a corporation (such as a Limited Liability Company). This serves as your Federal ID for business.
- You file tax returns for firearms, tobacco, and alcohol, or employment and excise.
- Apart from wages, you withhold taxes on income paid to non-resident aliens.
- You have a Keogh plan.
- You are involved with any of the following organizations:
- Estates
- Farmers’ cooperatives
- Non-profit organizations
- Plan administrators
- Real estate mortgage investment conduits
- Trust (barring a few grantor-owned revocable trusts, Exempt Organization Business Income Tax Returns, IRS)
You will only need an Amazon Employer Identification Number in certain cases to sell on Amazon and may be used to report sales records when needed. Individual sellers (not a business identity) can use their Social Security Numbers to start their online business on Amazon. Enter this into your Amazon Seller account credentials.
Even if you register a business, you are not required to obtain an Amazon EIN. Continue reading to learn how long does it take to get EIN number and more.
When do you or don’t you need an EIN to sell on Amazon?
You will NOT NEED AN EIN if:
You are selling as an individual:
This is the case with most Amazon sellers getting started. All you need is to sign up, add your bank account, and provide your SSN.
You are Single-Member LLC:
You may consider starting an LLC at some point when your Amazon sales shoot up, and you might even get a business credit card to keep your business and personal expenses separate.
However, if you are the only member of the LLC, the IRS will consider you as a ‘disregarded entity.’ The Amazon Tax Information Interview Guide states that you can use your SSN for a Single-Member LLC.
So, if you are a Single-Member LLC, you can fill out your Amazon Tax Information Interview as an Individual without an EIN.
You will NEED AN EIN if:
You are a Single-Member LLC with S-Corp or C-Corp election:
Even if you are the only member of your LLC, but you elected S-Corp (S Corporation) or C-Corp (C Corporation), you will need EIN.
Whether or not you need S-Corp or C-Corp election depends on your specific business. You’ll need to consult an accountant to understand the pros and cons, especially if you are a serial entrepreneur on Amazon.
Multi-Member LLCs with no S-Corp or C-Corp election:
If your LLC has multiple members, but you did not elect S-Corp or C-Corp, your company will be automatically considered a Partnership, and you will need an EIN.
S-Corp, C-Corp, or Partnership that’s not an LLC:
You can actually skip the LLC part and register as an S-Corp, C-Corp, or Partnership. The IRS will tax you the same way it taxes LLCs and you will need an EIN number. While selecting the Federal Tax Classification on Amazon, skip LLC and select appropriately.
What if I’m a non-U.S. seller?
Non-U.S. Amazon sellers will need a U.S. Tax Identification Number (TIN) if their income is effectively connected to a U.S. business or trade.
Those who do not have a U.S. TIN must apply for a U.S. TIN, which can be an Individual Taxpayer Identification Number (ITIN) or EIN, which is one of the required Amazon seller tax documents.
However, if the government of the country of residence of the non-US seller has a tax treaty with the U.S. government, to avoid double taxation, the seller must provide the tax identification number issued to him by his local tax authority.
If the non-U.S. seller cannot furnish a local TIN, he must apply for a U.S. TIN with the IRS. If the non-U.S. seller cannot provide a U.S. TIN or a TIN issued by his local tax authority, Amazon will withhold 30% of the income.
To learn more about Amazon’s policies on taxes, follow this link. You can visit the U.S. Treasury Department’s Tax Treaty Documents page to learn about your country’s tax treaty with the United States.
How to apply for an Amazon EIN?
So, the first thing you may ask is, “How can I find my EIN number?”
Whether you are a sole proprietor or you formed an LLC, the registration process for an EIN tax ID is the same and use the same EIN number to file taxes. Here are the steps to follow to apply for an EIN;
Step 1: Check the rules and requirements
Visit the IRS page for an online application for EIN and go through the eligibility conditions to obtain your IRS federal EIN. If your principal business is located in the US or U.S. Territories, you will need an ITIN (Individual Tax Identification Number) or SSN (Social Security Number) to apply for the EIN.
Step 2: Keep documents handy
Keep all the documents and information ready before you begin the application process. You can complete EIN Tax ID application process in one sitting if all documents are ready.
The session will end if you become inactive for 15 minutes and return to zero and so you’ll need to start over. That’s frustrating.
You’ll also need a valid email and/or mailing address from within the U.S.
Step 3: Proceed with the application process
The EIN number is immediately issued once you proceed with the application process and complete it, however, the IRS may put you through a tax interview if it finds discrepancies in your applicationor lack of detailed information regarding your person.
Once you have your EIN, access your Amazon seller account via your Amazon Seller Central and provide this EIN to Amazon.
Remember that the EIN is a tax ID that contains a unique nine-digit number that applies only to your principal business and remains the same for the lifetime of your business for tax purposes.
Is it possible to sell online without registering for a business?
Yes, it is possible to sell online without registering for a business; however, it’s essential to consider the potential limitations and legal implications.
Selling as an individual or sole proprietor, rather than a registered business, may expose you to personal liability, limit your access to payment gateways and financial services, and restrict the scale of your operations.
Additionally, depending on your jurisdiction, you may still be required to adhere to local tax and regulatory requirements, even when selling as an individual.
Ultimately, it’s crucial to understand your local regulations and assess the risks associated with selling online without registering a business.
Amazon EIN – Additional Information
For those diving into the world of Amazon and business management, understanding the importance of an Employer Identification Number (EIN) is essential. Here’s some additional information that might clarify further:
- Address & Application: Amazon often requires a valid mailing address when setting up your seller account or for other business interactions. This address will be where official documents and tax forms are sent.
- Identification Numbers: An EIN, often referred to as a federal tax identification number, is a unique nine-digit number issued by the Internal Revenue Service (IRS). It’s vital for businesses, particularly for tax purposes. The EIN is different from other forms of identification like the individual taxpayer identification number (ITIN) or employee identification number. You can apply for an EIN on the IRS portal.
- Why You Need an EIN: If you’re a principal business operating on platforms like Amazon, having an EIN or an individual tax identification number is crucial. It helps in the tax interview process, ensuring you comply with tax obligations and maintain the legitimacy of your business.
- Obtaining an EIN: You can apply online for an EIN directly from the IRS website. The process is relatively straightforward, but you should be prepared to provide a valid taxpayer identification number. Depending on the method you choose, it can take up to four weeks for your EIN to be processed.
- Using the EIN: This number is not just for tax forms. Your EIN, sometimes referred to as an employer identification number EIN, is also often required when setting up a bank account for your business or for certain financial transactions.
- Limited Liability Companies (LLC): If you’re operating as an LLC or thinking about transitioning into one, know that the IRS will require an EIN for tax processing purposes.
- Stay Updated: Tax regulations and requirements, especially when selling on massive platforms like Amazon, can be intricate. Always ensure you’re up-to-date on what’s required and reach out to professional financial services or the IRS directly if in doubt.
Understanding your tax responsibilities, including having an appropriate tax identification number, is crucial for smooth business operations on platforms like Amazon. Whether it’s for tax forms, banking, or general business management, your EIN will be at the heart of many of these transactions.
Amazon EIN – Summary
While I hope this article has given you some guidance as to whether you need an EIN to sell on Amazon, please note I am not a financial advisor, an accountant or have any type of official finance qualifications. This is simply information gathered from my own experiences as an Amazon seller and what I’ve read on the various official websites included in this post.
My best recommendation is to speak with a local accountant who knows your own personal and business situation. You don’t need to contract their services at this stage or pay any huge retainers. Simply pay for a one off consult (or call in a favor) to ensure you set your business entity up on Amazon correctly from the get go.
Then once you’re making regular sales and need an accountant, you’ll know who to speak to!
Learn How to Build Your Own 7-Figure Amazon FBA Business
Part of the Junglescout suite of excellent FBA tools, the learning academy is a comprehensive video training library containing hours of content, including training videos, webinars, and interviews with successful Amazon sellers.
Whether you’re just starting your business, or growing your brand, get expert training from Amazon sellers without the hefty price tag.
Amazon EIN: FAQs
Can you sell on Amazon without an EIN?
Yes, you can. But before you dive head-first into the world of Amazon FBA business or Amazon Kindle Direct Publishing, let’s explore the nuances.
Why You Might Consider an EIN:
- Privacy: An EIN offers a buffer between your Amazon account and your personal life. This is especially valuable if you’re venturing into more public avenues like Amazon Kindle Direct Publishing or Amazon digital publishing, where your name could be visible to a wider audience.
- Scaling Your Amazon FBA Business: An EIN isn’t just a set of numbers; it’s a ticket to scale. If you’re looking to grow your Amazon FBA business, having an EIN will be essential down the line for hiring employees and expanding operations.
- Business Banking: To open a dedicated bank account for your Amazon business, most banks will ask for an EIN.
- Credibility: Having an Amazon EIN number adds a level of professionalism. This can be a major asset, especially when you’re dealing with other vendors in the Amazon business ecosystem.
What You Need Without an EIN:
- Social Security Number: For sole proprietors not ready to apply for an Amazon EIN immediately, your SSN will suffice for tax identification purposes on your Amazon account.
- Your Legal or Business Name: This should align with the SSN or Amazon EIN number you’re using for your Amazon business.
- Tax Documentation: Whether you’re diving into Amazon FBA business or getting your latest e-book up on Amazon Kindle Direct Publishing, you’ll need to complete relevant tax documents. U.S. sellers usually complete a W-9 form through their Amazon Seller Central account.
How Do I Find My Amazon EIN?
You can identify your EIN by referring to the CP575A notice that the IRS sent you when your EIN was initially set up. Ensure the Tax Identification Number (TIN) you use matches this EIN. For single-member LLCs, use either the EIN or SSN of the owner, rather than the EIN of the disregarded entity.
How Can I Retrieve My Lost or Misplaced EIN?
If you’ve misplaced your EIN, one way to recover it is by checking any past tax returns you’ve filed for your business. Your EIN should be indicated on these documents.
How long does it take to get a new EIN?
Once you complete the online application through the IRS website, you should receive your EIN immediately via email. However, the information you provide must be accurate.
Do I need a social security number to sell on Amazon?
Technically, you won’t need a Social Security Number SSN if you have ITIN or EIN. However, if you are registering with Amazon as an individual seller or as a single-member LLC with no S-Corp or C-Corp election, you can use your SSN to sell on Amazon.
How to get EIN number for Amazon, and how much does an EIN cost?
So, you’re ready to start selling on Amazon and you’re wondering how to get your Amazon EIN. The good news is, obtaining an Employer Identification Number (EIN) from the IRS is usually free of charge.
That’s right, you read that correctly; there is generally no cost associated with getting an EIN. This unique nine-digit number is required for tax identification and is essential for sellers who are running a business as opposed to just a casual selling operation.
Do I need a tax ID number to sell on Amazon?
This is a common question, especially for newcomers to the platform. The answer largely depends on the scale and nature of your business. If you’re planning to operate as a business, then yes, you’ll likely need an EIN as your tax ID number for regulatory compliance and tax purposes.
However, if you’re an individual selling a few items casually, you might be able to get away with using your Social Security Number (SSN) instead.
Do I need an SSN to get an EIN?
Do I need both EIN and SSN? You will need an SSN to get a new EIN only if you apply online. For offline applications, you can use your valid U.S. passport or any government-issued identification document. Plus, you must prove that you are living in the U.S. or a U.S. territory.
