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Amazon FBA Seller

How to Start an Amazon FBA Business: LLC Setup

Thinking about selling on Amazon? Amazon's fees can take about 28% of a $29.99 sale before you pay for the product, and one sales number makes Amazon require $1M of liability insurance. Why an LLC matters here, and the key Bizee screens, start to finish.

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The video for this guide is on its wayIt publishes Nov 17
Why an LLC for an Amazon business?

Why an LLC for this business

01

The names

Your ID, business papers and bank statement must match what you registered

02

Claims

Over $1,000, you or your insurer deal with the customer directly

03

Insurance

$10,000 in a month: 30 days to carry $1M, under the right name

How to start it, in order

  1. Do the fee math first: 15% referral fee in Home and Kitchen, an FBA fee by size and weight, and a 3.5% surcharge (as of Nov).
  2. Form your LLC and get its EIN if you need one. Amazon checks your ID and business papers against what you register.
  3. Open a bank account in the LLC's name. Amazon wants a statement from the last 180 days with the business name.
  4. Register on Seller Central: Professional is $39.99 a month, Individual is $0.99 per item sold.
  5. Check your state's seller's permit rules: California and Texas answer differently.
  6. Get liability insurance: $1M per occurrence, required within 30 days of a $10,000 month, and before listing in 11 safety categories.
  7. Selling kids' products or imports? Check the CPSC testing and certificate rules before you order.

Every fact in this guide was checked against a primary source before the video was made.

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