Arizona LLC for E-commerce and Amazon Sellers
Why online sellers abroad pick Arizona: minimal annual costs, a mainstream US entity for marketplaces and payments, simple compliance, and how TPT and inventory affect sellers.
Online sellers need a company that is cheap to maintain, accepted by marketplaces and payment processors, and simple to run from abroad. An Arizona LLC ticks all three boxes, which is why it is a popular alternative to Wyoming for e-commerce founders.
Why Arizona works for sellers
- No annual report and no franchise tax for LLCs, so nothing to file at the state each year.
- $199 all-in for an Arizona LLC + EIN with UCB.
- A mainstream US entity, recognised by Amazon, Shopify, Etsy, Stripe and PayPal.
- Easy to manage remotely.
- Logistics location: Arizona sits close to California's ports and the Mexican border, with growing warehouse and 3PL capacity around Phoenix, if you later want US fulfilment.
The setup
- Form the Arizona LLC and get the EIN.
- Open a US business bank account for payouts. See the bank account guide.
- Register on marketplaces and connect payment processors with identical company details.
- Register your trademark if you sell a private-label brand. See US trademarks.
Our Company + EIN + Bank Account package covers steps 1 and 2.
Sales tax and TPT
- Marketplaces (Amazon, Etsy, Walmart) generally collect and remit sales tax, including Arizona's TPT, on sales through their platforms.
- Your own store: you are responsible once you have nexus in a state. In Arizona, the remote seller threshold is $100,000 in annual Arizona sales; other states have their own thresholds.
- Inventory stored in a state, including in Amazon warehouses, can create nexus there.
See Arizona business taxes and TPT and US sales tax for online sellers.
Income tax
Forming in Arizona does not create Arizona income tax for a business run from abroad with no Arizona activity. Federally, a single-member LLC owned by a non-resident is disregarded; whether its e-commerce profits are taxed in the USA depends on whether the business is effectively connected with the USA, which US inventory and US agents can affect. See Amazon FBA with a US LLC and effectively connected income.
Every foreign-owned LLC files Form 5472 every year. See Form 5472 explained.
Arizona vs Wyoming for sellers
| Arizona | Wyoming | |
|---|---|---|
| UCB LLC + EIN | $199 | $249 |
| Annual report | None | From $60 |
| Owner privacy | Members/managers listed | Not listed |
| Marketplace acceptance | Yes | Yes |
Choose Arizona for the lowest ongoing cost; Wyoming if privacy matters more. See Arizona vs Wyoming.
Things to watch
- Publication: only applies if your LLC's address is outside Maricopa and Pima counties. See the publication requirement.
- Consistent details: marketplaces verify sellers carefully; match your company name, address and EIN exactly.
- Federal filing: with no state annual report, don't forget your federal return.
How UCB helps
We form your Arizona LLC, act as statutory agent, obtain your EIN, open your bank account with consistent details for marketplace verification, and file your annual federal returns. See US LLC for e-commerce sellers.
Selling online and want the lowest-maintenance US company? WhatsApp us at +91 8105 199 399 or email info@ucbsolutions.com.
Let our experts handle it for you
Every business is different. Message us with your country, business type and goals, and we will recommend the right structure, state and package. We do the work; you focus on your business.
This article is general information for non-resident business owners and is not legal or tax advice. Rules and fees change; contact us to confirm what applies to your situation.
