Why Amazon and Shopify treat US-registered sellers differently
Amazon Seller Central accepts sellers from more than 100 countries, but the treatment is not equal. A non-US seller submits Amazon's Foreign Seller Verification, has a 30-day payout hold applied by default, faces higher FBA reimbursement scrutiny and receives payouts through Amazon Currency Converter for Sellers (ACCS) — which charges a 1.5–2% spread on every disbursement.
A US-registered seller (Wyoming LLC + EIN + Mercury account) skips foreign verification, receives standard 14-day rolling payouts, and can register for Amazon Prime shipping badges that non-US-registered sellers rarely qualify for because their fulfilment metrics are scored differently.
Shopify is even clearer: Shopify Payments requires a US EIN and a US bank account to activate in the US region. Without an LLC, non-US sellers fall back to PayPal or Stripe Connect — losing 2–4% in extra processing fees and giving up native Shop Pay conversion uplift (Shopify's own data shows a 1.72× conversion lift for Shop Pay carts).
Setup path — Wyoming LLC to first FBA shipment
Week 1 — entity + tax IDs
Form the Wyoming LLC (24–72h with us), file Form SS-4 for the EIN, and receive the CP-575 letter. Register for a Sales & Use Tax permit in the states where you will hold inventory. Amazon FBA stores your inventory in multiple states, but economic nexus rules (post-Wayfair v. South Dakota, 2018) mean you owe sales tax only where you exceed a state's threshold — usually $100,000 or 200 transactions per year.
Week 2 — banking + Seller Central
Open the Mercury account (3–7 business days via our banking partner intro), then create Seller Central using the LLC as the legal entity. Amazon will ask for a Certificate of Good Standing (we supply this), a utility bill for the LLC address (we supply the registered-agent mailer), and a bank statement (Mercury provides a PDF within days of first deposit).
Week 3 — Shopify Payments + logistics
Activate Shopify Payments using the EIN. Connect the Mercury account. Configure TaxJar or Avalara for automated sales-tax collection. If you ship internationally from a US warehouse, integrate a 3PL (ShipBob, Deliverr, Amazon Multi-Channel Fulfilment) using the LLC's Duns number (auto-issued when you register with the US SAM system for free).
US sales-tax rules for non-resident sellers
Sales tax is a state matter, not a federal one. The 2018 Supreme Court decision in South Dakota v. Wayfair allowed states to require remote sellers to collect sales tax once they cross the state's economic-nexus threshold. Most states set the threshold at $100,000 in sales or 200 transactions per year; California uses $500,000; Texas $500,000.
For Amazon FBA sellers there is an additional layer: marketplace facilitator laws. In 47 states, Amazon itself collects and remits sales tax on your behalf — you only owe if you also sell direct on Shopify or on another platform. This dramatically simplifies non-resident tax compliance compared to pre-2020.
Wyoming has no state sales tax obligation for you as a Wyoming LLC unless you physically operate in Wyoming (an FBA warehouse in another state does not create Wyoming nexus). Your out-of-state nexus is determined by where Amazon stores your inventory, which you can view in Seller Central under "Inventory ▶ Fulfillment Reports ▶ Inventory Event Detail".
US import compliance — EIN, IOR and duties
When you ship containers to a US Amazon FBA warehouse, your Wyoming LLC becomes the Importer of Record (IOR). Customs & Border Protection requires the LLC's EIN (converted to a CBP-assigned "importer number"), a Continuous Bond ($500/year through most customs brokers) and, for goods above $2,500, a formal entry filed by a licensed customs broker.
Because the LLC is US-registered, US Customs treats you as a resident importer. This unlocks the Automated Commercial Environment (ACE) portal, Type 3 entries and faster clearance. A non-US-registered seller must either partner with a US IOR (Amazon does not act as IOR for you) or pay for an "Importer Security Filing" service — typically $300–$800 per shipment.
Which US bank works best for Amazon disbursements
Amazon disburses to any US ACH-capable account. In practice, four options dominate for non-resident sellers:
- Mercury — our default partner. Native Amazon integration through Mercury's revenue-based financing product (once you cross $50k/month).
- Wise Business — best for sellers who convert most revenue back to a home currency. 0.4–0.6% FX vs Amazon's ~2% via ACCS.
- Payoneer — Amazon's default recommendation but 1–2% higher on conversions than Wise. Useful only if your country lacks Wise or Mercury access.
- Relay — best if you want per-supplier virtual cards for COGS management.
Non-resident vs Wyoming LLC seller — Amazon FBA experience
| Foreign Seller (personal) | Wyoming LLC Seller | |
|---|---|---|
| Amazon payout hold | 30 days default | 14 days rolling |
| Shopify Payments eligibility | Blocked | Enabled with EIN |
| FX cost on Amazon disbursements | ~2% via ACCS | 0.4–0.6% via Wise or 0% USD hold |
| Customs Importer of Record | Needs paid US IOR service | LLC acts as own IOR |
| Sales-tax filing complexity | State-by-state manual | Marketplace facilitator + TaxJar automation |
| Amazon Brand Registry eligibility | Requires local trademark | US trademark filed under LLC |
| Setup time to first FBA shipment | 6–10 weeks | 3–4 weeks |
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E-commerce Seller Mistakes That Cost the Most
- 1
Registering Amazon Seller Central under personal name
Amazon requires the account holder to match the bank account name. If Seller Central is personal but Mercury is LLC, disbursements bounce until you reopen the account (30-day process).
- 2
Skipping the Sales & Use Tax permit in inventory states
Even when Amazon collects for you, most states still require you to register — and file zero returns. Skipping registration triggers non-filing penalties of $50–$500 per missed period.
- 3
Ignoring the Wyoming annual report
A dissolved LLC breaks Amazon Seller Central instantly. Amazon's compliance runs a monthly check against state records. Reinstatement takes 30–45 days.
- 4
Using freight-forwarder addresses for the LLC principal address
Amazon flags freight-forwarder addresses as high-risk. Use the Wyoming registered-agent address as the LLC's principal, then list the freight-forwarder only in the shipping settings.
- 5
Not filing Form 5472 in the first tax year
IRC §6038A imposes a $25,000 penalty per late Form 5472. For a foreign-owned single-member LLC selling on Amazon, this form is mandatory even in the first month of operation.