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!
What is an Amazon EIN?
First things first, there is no such thing as Amazon EIN. Because many sellers hear about EIN or Employee Identification Number for the first time after being a seller on Amazon, they simply refer to it as the Amazon EIN.
The EIN, or the Employee Identification Number, is a Federal Tax Identification 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.
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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Do I need an Amazon Employer Identification Number?
According to the IRS website, if you satisfy any of the following conditions, you will need an Employer Identification Number (EIN):
- You have employees.
- You operate your business as a partnership or a corporation (such as a Limited Liability Company).
- 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. You can use your Social Security Number to start your online business on Amazon as an individual seller (not a business entity).
Even if you register a business, you may not require an EIN. Continue reading to learn 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.
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 require 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.
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?
Whether you are a sole proprietor or you formed an LLC, the registration process for an EIN is the same. Here are the steps to follow;
Step 1: Check the rules and requirements
Visit the IRS page for an online application for EIN and go through the eligibility conditions. If your business is 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 start the application process. You can complete the 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 address from within the U.S.
Step 3: Proceed with the application process
You’ll receive the EIN immediately 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 application.
Once you have your EIN, access your Amazon Seller Account and provide the EIN.
Remember that the EIN is a unique nine-digit number that applies only to your 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.
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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: General FAQ
Can you sell on Amazon without an EIN?
Yes, you can sell on Amazon without an EIN if you register as an Individual seller or a Single/One-Member LLC with no S-Corp or C-Corp election.
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 an 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.
Do I need an SSN to get an EIN?
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.
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!
Good luck with your business!
