US LLC for E-commerce Sellers: Amazon, Shopify and Etsy from Abroad

Selling to American shoppers is one of the most common reasons founders abroad form a US LLC. A US company makes it easier to open marketplace and payment accounts, receive payouts in US dollars, and present a local brand to customers. This guide covers what e-commerce sellers specifically need to think about.

Why e-commerce sellers choose a US LLC

• Marketplace access: many marketplace and payment programmes work best with a US entity, EIN and US bank account.
• Payment processing: Stripe, PayPal and Shopify Payments are straightforward for a US company. See Stripe for non-residents.
• USD payouts into a US account, avoiding repeated currency conversion.
• Customer trust: a US business name, address and support details.
• Supplier relationships with US wholesalers and 3PLs (third-party logistics providers).

Which state?

For most online sellers without their own US warehouse or staff, the formation state matters less than people think:

• Wyoming is the common choice: low annual cost, privacy, familiar to platforms. See Wyoming LLC for non-residents.
• New Mexico or Arizona for the lowest ongoing cost.
• Florida or Texas if you will hold your own inventory or have staff there.

See which state should a non-resident choose.

The setup checklist

1. Form the LLC and obtain the EIN.
2. Get a US business address for platforms and suppliers.
3. Open a US business bank account. See the bank account guide.
4. Register on marketplaces (Amazon, Etsy, Walmart, eBay) or set up your Shopify store.
5. Connect payment processors to your US bank account.
6. Register a trademark if you are building a brand. See trademarks for a US company.

Inventory, warehouses and tax

Where your stock sits matters:

• Inventory in US warehouses, including Amazon fulfilment centres, can create sales tax nexus in those states, and in some situations can affect whether your income is effectively connected with the USA.
• Dropshipping from suppliers, with no inventory of your own in the USA, is simpler.

See Amazon FBA with a US LLC and Shopify and dropshipping.

Sales tax

The USA has no national sales tax; states set their own. Marketplaces generally collect and remit sales tax on sales through their platforms. On your own website, collecting sales tax is your responsibility once you have nexus in a state, through inventory or sales above the state's threshold (often $100,000 a year). See US sales tax for online sellers.

Imports and customs

If you import goods into the USA, you need to think about customs duties, product compliance and the importer of record. Your LLC can act as importer of record with the right registrations, or you can use your supplier or logistics provider. See import-export business in the USA.

Federal tax

A single-member LLC owned by a non-resident is a disregarded entity. Whether its e-commerce profits are taxable in the USA depends on whether the business is effectively connected with the USA, which inventory, staff and US-based agents can affect. See effectively connected income. Either way, Form 5472 is required every year. See Form 5472 explained.

Payment platform tips

• Use the exact legal company name and EIN everywhere.
• Publish shipping, returns, refund and privacy policies.
• Keep dispute and refund rates low.
• Ramp up volume gradually, or tell your processor before a big launch.

Annual compliance

State annual report, registered agent renewal, federal returns, 1099-K reconciliation and sales tax returns where registered. See annual requirements for a foreign-owned LLC.

How UCB helps

Our Company + EIN + Bank Account package sets up everything an e-commerce seller needs to start: the LLC, EIN, registered agent and a US business bank account, with consistent details for marketplaces and payment platforms. We then handle your annual federal filings.

See the company + EIN + bank account package.

Starting or growing an e-commerce business in the USA? WhatsApp us at +91 8105 199 399 or email info@ucbsolutions.com.