{"id":3302,"date":"2026-08-05T11:42:53","date_gmt":"2026-08-05T11:42:53","guid":{"rendered":"https:\/\/e-startup.io\/blogs\/?p=3302"},"modified":"2026-08-05T11:42:53","modified_gmt":"2026-08-05T11:42:53","slug":"amazon-fba-and-us-llc-2026-tax-compliance-setup","status":"publish","type":"post","link":"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/","title":{"rendered":"Amazon FBA and US LLC 2026: Tax and Compliance Setup for Indian Sellers Entering the US Market"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In recent years, many Indian business owners have resorted to Amazon FBA and US LLC in order to sell their products to American consumers. <\/span><span style=\"font-size: inherit;\">The US continues to be one of the biggest e-commerce countries in the world, and <\/span><a href=\"https:\/\/e-startup.io\/blogs\/grow-your-e-commerce-brand-with-a-u-s-company\/\"><span class=\"zlAe0W_TextBase zlAe0W_Text rFU14q_Emphasis\" style=\"font-size: inherit;\" data-w-component=\"bold\" data-w-default-strong=\"\" data-w-inline=\"\" data-w-wrap=\"normal\"><span class=\"ac5DTa_Box f-3WbG_Pressable\" tabindex=\"0\" role=\"button\" data-w-direction=\"col\" data-w-auto-spacing=\"\" data-w-component=\"pressable\" data-w-inline=\"\" aria-label=\"Open growing an e-commerce brand with a U.S. company\"><span class=\"zlAe0W_TextBase zlAe0W_Text\" data-w-component=\"text\" data-w-inline=\"\" data-w-wrap=\"normal\">growing an e-commerce brand with a U.S. company <\/span><\/span><\/span><\/a><span style=\"font-size: inherit;\"> can help Indian sellers understand how a US entity supports global expansion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nevertheless, entering the American market is not just about identifying lucrative products. Indian sellers have to know how to register as a company in the US, how to get tax registered, pay taxes and meet all annual compliance requirements to avoid any penalties and account problems.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here you can learn about setting up 2026 tax and compliance as an Indian seller doing Amazon FBA and US LLC.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Why_Indian_Sellers_Use_an_Amazon_FBA_and_US_LLC\" >Why Indian Sellers Use an Amazon FBA and US LLC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Step_1_Choose_the_Right_State_for_LLC_Formation\" >Step 1: Choose the Right State for LLC Formation<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Wyoming_LLC\" >Wyoming LLC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Delaware_LLC\" >Delaware LLC<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Step_2_Obtain_an_EIN_from_the_IRS\" >Step 2: Obtain an EIN from the IRS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Step_3_Open_a_US_Business_Bank_Account\" >Step 3: Open a US Business Bank Account<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Common_options_include\" >Common options include:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Step_4_Understand_Amazon_FBA_and_US_LLC_Sales_Tax_Nexus\" >Step 4: Understand Amazon FBA and US LLC Sales Tax Nexus<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Key_2026_update\" >Key 2026 update<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Step_5_Federal_Tax_Rules_for_Indian-Owned_LLCs\" >Step 5: Federal Tax Rules for Indian-Owned LLCs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Single-Member_LLC_Owned_by_an_Indian_Resident\" >Single-Member LLC Owned by an Indian Resident<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Required_IRS_filings_may_include\" >Required IRS filings may include:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Filing_deadline\" >Filing deadline<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Step_6_Do_Indian_Sellers_Pay_US_Income_Tax\" >Step 6: Do Indian Sellers Pay US Income Tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Step_7_Indian_Tax_Obligations_Still_Apply\" >Step 7: Indian Tax Obligations Still Apply<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Its_possible_that_you_would_need_to_file_taxes_for\" >It\u2019s possible that you would need to file taxes for:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Step_8_Maintain_Proper_Accounting_Records\" >Step 8: Maintain Proper Accounting Records<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Here_is_the_list_of_items_that_should_be_tracked_each_month\" >Here is the list of items that should be tracked each month:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Step_9_Annual_LLC_Compliance_Checklist_for_2026\" >Step 9: Annual LLC Compliance Checklist for 2026<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Federal_Compliance\" >Federal Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#State_Compliance\" >State Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Amazon_Compliance\" >Amazon Compliance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Common_Mistakes_Indian_Amazon_Sellers_Make\" >Common Mistakes Indian Amazon Sellers Make<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Using_a_personal_bank_account\" >Using a personal bank account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Ignoring_Form_5472\" >Ignoring Form 5472<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Registering_for_sales_tax_in_every_state_unnecessarily\" >Registering for sales tax in every state unnecessarily<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Mixed_up_accounts_for_Indian_and_US_expenditures\" >Mixed up accounts for Indian and US expenditures<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#How_E-Startup_Can_Help\" >How E-Startup Can Help<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#Conclusion\" >Conclusion\u00a0\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Why_Indian_Sellers_Use_an_Amazon_FBA_and_US_LLC\"><\/span><b>Why Indian Sellers Use an Amazon FBA and US LLC<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Limited Liability Company (LLC) is among the top structures used by non-US sellers who are looking to trade through Amazon.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Advantages of an LLC:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Access to the Amazon US marketplace<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improved credibility when dealing with suppliers or financial institutions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Separation of personal liability from that of the business<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Possibility to open a <a href=\"https:\/\/e-startup.io\/usa-business-bank-account.php\">US business bank account<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">More straightforward operation of the business than some other US business structures<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">LLCs such as Wyoming LLCs and Delaware LLCs are often preferred by Indians due to low maintenance and favorable regulations.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Step_1_Choose_the_Right_State_for_LLC_Formation\"><\/span><b>Step 1: Choose the Right State for LLC Formation<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Wyoming_LLC\"><\/span><a href=\"https:\/\/e-startup.io\/wyoming-llc-formation-services.php\"><b>Wyoming LLC<\/b><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Suitable for: <\/b><span style=\"font-weight: 400;\">Small and medium-sized Amazon sellers<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Benefits:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Low annual state charges<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No state income taxes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Privacy protection<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Easy compliance<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Delaware_LLC\"><\/span><b>Delaware LLC<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Suitable for: <\/b><span style=\"font-weight: 400;\">Companies looking to generate investments or grow considerably<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Benefits:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Internationally accepted company laws<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Investor friendly formation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Flexible management guidelines<\/span><\/li>\n<\/ul>\n<p>If you are new to US company formation, read <a href=\"https:\/\/e-startup.io\/blogs\/guide-forming-a-u-s-llc-company\/\"><span class=\"zlAe0W_TextBase zlAe0W_Text rFU14q_Emphasis\" data-w-component=\"bold\" data-w-default-strong=\"\" data-w-inline=\"\" data-w-wrap=\"normal\"><span class=\"ac5DTa_Box f-3WbG_Pressable\" tabindex=\"0\" role=\"button\" data-w-direction=\"col\" data-w-auto-spacing=\"\" data-w-component=\"pressable\" data-w-inline=\"\" aria-label=\"Open Step-by-step guide: Forming a U.S. LLC as a non-resident\"><span class=\"zlAe0W_TextBase zlAe0W_Text\" data-w-component=\"text\" data-w-inline=\"\" data-w-wrap=\"normal\">Step-by-step guide: Forming a U.S. LLC as a non-resident <\/span><\/span><\/span><\/a> for a detailed explanation of the LLC registration process for international founders.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Step_2_Obtain_an_EIN_from_the_IRS\"><\/span><b>Step 2: Obtain an EIN from the IRS<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">After forming the LLC, you must apply for an <\/span><a href=\"https:\/\/e-startup.io\/ein-application-services.php\"><b>Employer Identification Number (EIN)<\/b><\/a><span style=\"font-weight: 400;\"> from the <\/span><b>Internal Revenue Service (IRS)<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The EIN is required for:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Amazon seller account verification<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">US business bank account opening<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax filings<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payment processor registration<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Supplier and wholesale account setup<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Non-US residents can obtain an EIN <\/span><b>without a US Social Security Number (SSN)<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Step_3_Open_a_US_Business_Bank_Account\"><\/span><b>Step 3: Open a US Business Bank Account<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Amazon generally pays sellers into a bank account that can receive <\/span><b>USD payments<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Common_options_include\"><\/span><b>Common options include:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mercury<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Relay<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wise Business<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payoneer<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Airwallex<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You will typically need:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">LLC formation documents<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">EIN confirmation letter<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Passport<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Address proof<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Amazon seller account information (sometimes)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Keeping business transactions separate from personal finances is essential for accurate accounting and tax reporting.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Step_4_Understand_Amazon_FBA_and_US_LLC_Sales_Tax_Nexus\"><\/span><b>Step 4: Understand Amazon FBA and US LLC Sales Tax Nexus<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">This is definitely one of the least understood aspects by Indian sellers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By employing <a href=\"https:\/\/en.wikipedia.org\/wiki\/Fulfillment_by_Amazon\" target=\"_blank\" rel=\"noopener\">Amazon FBA<\/a> and US LLC, your inventory is housed in Amazon warehouses located in different US states. Your inventory housed in a particular state may establish sales tax nexus and hence would need you to register for sales tax in that state.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Key_2026_update\"><\/span><b>Key 2026 update<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Under the Marketplace Facilitator Laws, Amazon acts as the sales tax agent on behalf of marketplace sellers in most states.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What does this imply?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sales tax is collected by Amazon from customers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sales tax is paid by Amazon to the respective states.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Sellers might still need to register and file informational tax return in some states depending on their inventory location.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Step_5_Federal_Tax_Rules_for_Indian-Owned_LLCs\"><\/span><b>Step 5: Federal Tax Rules for Indian-Owned LLCs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Single-Member_LLC_Owned_by_an_Indian_Resident\"><\/span><b>Single-Member LLC Owned by an Indian Resident<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">By default, the LLC is often treated as a <\/span><b>disregarded entity<\/b><span style=\"font-weight: 400;\"> for US federal tax purposes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The LLC itself may not pay income tax, but it still has <\/span><b>reporting obligations<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Required_IRS_filings_may_include\"><\/span><b>Required IRS filings may include:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Filing<\/b><\/td>\n<td><b>Purpose<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Form 5472<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Reports transactions between the US LLC and its foreign owner<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Pro Forma Form 1120<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Filed together with Form 5472<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Schedule C equivalent records<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Internal accounting support<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Filing_deadline\"><\/span><b>Filing deadline<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">For calendar-year LLCs, the filing is generally due by <\/span><b>15 April<\/b><span style=\"font-weight: 400;\">, with extension options available.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Failure to file <\/span><b>Form 5472<\/b><span style=\"font-weight: 400;\"> can result in <\/span><b>substantial IRS penalties<\/b><span style=\"font-weight: 400;\">, so this requirement is extremely important for Indian owners.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Step_6_Do_Indian_Sellers_Pay_US_Income_Tax\"><\/span><b>Step 6: Do Indian Sellers Pay US Income Tax?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The answer will depend on whether the company is classified to earn Effectively Connected Income (ECI) from a US trade or business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For many Amazon FBA sellers working out of a US LLC and running the business from India, the situation might not be simple and can become based on factors like:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Structure of the inventory<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Usage of Amazon\u2019s warehouses<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Activities carried out in the US<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Provisions of the India-US tax treaty<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As this is a complicated topic, it is best for the seller to consult a cross-border tax expert.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Step_7_Indian_Tax_Obligations_Still_Apply\"><\/span><b>Step 7: Indian Tax Obligations Still Apply<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Filing an LLC in the United States doesn\u2019t necessarily exempt you from any Indian tax obligations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Indian citizens typically get taxed on their worldwide income unless there is some exemption for them.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Its_possible_that_you_would_need_to_file_taxes_for\"><\/span><b>It\u2019s possible that you would need to file taxes for:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Profits generated by Amazon business<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Foreign bank accounts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">US LLC ownership<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Any foreign property that is held in accordance with Indian law<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Working together with your Indian Chartered Accountant and US tax expert is strongly advised.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Step_8_Maintain_Proper_Accounting_Records\"><\/span><b>Step 8: Maintain Proper Accounting Records<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It is very important for Amazon performance analysis as well as tax compliance to keep accurate books.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Here_is_the_list_of_items_that_should_be_tracked_each_month\"><\/span><b>Here is the list of items that should be tracked each month:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Amazon sales revenue<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">FBA fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Marketing expenditures<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sourcing costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shipping and customs fees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Subscription to accounting software like QuickBooks, Xero, or Zoho Books<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Refunds and chargebacks<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Foreign currency fluctuations<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Step_9_Annual_LLC_Compliance_Checklist_for_2026\"><\/span><b>Step 9: Annual LLC Compliance Checklist for 2026<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Federal_Compliance\"><\/span><b>Federal Compliance<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Form 5472<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pro Forma Form 1120<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Maintain EIN Record<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"State_Compliance\"><\/span><b>State Compliance<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">File annual report<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Renew registered agent<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">State franchise\/license fee (where applicable)<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Amazon_Compliance\"><\/span><b>Amazon Compliance<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Business address<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identity documents<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Correct tax interview (W-8BEN or equivalent forms)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sales tax monitoring<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Common_Mistakes_Indian_Amazon_Sellers_Make\"><\/span><b>Common Mistakes Indian Amazon Sellers Make<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Using_a_personal_bank_account\"><\/span><b>Using a personal bank account<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It results in accounting discrepancies and could possibly cause problems during verification by the payment processor.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Ignoring_Form_5472\"><\/span><b>Ignoring Form 5472<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Many foreign business owners incorrectly believe that a disregarded LLC does not have to file anything.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Registering_for_sales_tax_in_every_state_unnecessarily\"><\/span><b>Registering for sales tax in every state unnecessarily<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Since Amazon is a marketplace facilitator in most states, it is usually not required.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mixed_up_accounts_for_Indian_and_US_expenditures\"><\/span><b>Mixed up accounts for Indian and US expenditures<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Separate accounts should be maintained for:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Indian procurement activities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">US marketplace activities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Personal activities<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_E-Startup_Can_Help\"><\/span><b>How E-Startup Can Help<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To set up an Amazon FBA and US LLC business, it needs more than just incorporating your company because it includes applying for an EIN number, setting up your bank accounts, IRS compliance, etc. E-Startup offers comprehensive solutions to entrepreneurs from India who want to incorporate a US LLC, register an EIN, get help in setting up their Amazon seller account, bookkeeping, and annual IRS compliance. E-Startup also provides a complete overview of its formation and compliance support services in <a href=\"https:\/\/e-startup.io\/blogs\/how-e-startup-helps-you-launch-your-business\/\"><span class=\"zlAe0W_TextBase zlAe0W_Text rFU14q_Emphasis\" data-w-component=\"bold\" data-w-default-strong=\"\" data-w-inline=\"\" data-w-wrap=\"normal\"><span class=\"ac5DTa_Box f-3WbG_Pressable\" tabindex=\"0\" role=\"button\" data-w-direction=\"col\" data-w-auto-spacing=\"\" data-w-component=\"pressable\" data-w-inline=\"\" aria-label=\"Open How E-Startup Helps You Launch Your Business Faster\"><span class=\"zlAe0W_TextBase zlAe0W_Text\" data-w-component=\"text\" data-w-inline=\"\" data-w-wrap=\"normal\">How E-Startup Helps You Launch Your Business Faster <\/span><\/span><\/span><\/a><\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><b>Conclusion\u00a0\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The selling of products using Amazon FBA and US LLC in America presents great opportunities for growth to Indian businessmen, but the key to success is establishing a proper legal and taxation framework from the start. The steps to be taken for the year 2026 by Indian sellers include establishing the right US LLC, getting an EIN number, opening a US bank account for business, knowing all about sales tax for Amazon FBA, and complying with the relevant IRS filing requirements.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In recent years, many Indian business owners have resorted to Amazon FBA and US LLC in order to sell their &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Amazon FBA and US LLC 2026: Tax and Compliance Setup for Indian Sellers Entering the US Market\" class=\"read-more button\" href=\"https:\/\/e-startup.io\/blogs\/amazon-fba-and-us-llc-2026-tax-compliance-setup\/#more-3302\" aria-label=\"Read more about Amazon FBA and US LLC 2026: Tax and Compliance Setup for Indian Sellers Entering the US Market\">Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":3303,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[244,247,245,251,248,249,250,246,146,50],"class_list":["post-3302","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-llc","tag-amazon-fba","tag-amazon-fba-and-us-llc","tag-amazon-fba-usa","tag-amazon-sales-tax-nexus","tag-delaware-llc","tag-ein-for-non-us-residents","tag-irs-form-5472","tag-us-llc-for-indian-sellers","tag-us-llc-formation","tag-wyoming-llc","resize-featured-image"],"_links":{"self":[{"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/posts\/3302","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/comments?post=3302"}],"version-history":[{"count":1,"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/posts\/3302\/revisions"}],"predecessor-version":[{"id":3304,"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/posts\/3302\/revisions\/3304"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/media\/3303"}],"wp:attachment":[{"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/media?parent=3302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/categories?post=3302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/e-startup.io\/blogs\/wp-json\/wp\/v2\/tags?post=3302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}