Amazon Seller Bookkeeping Made Simple and Painless!

Thanks for everyone who attended! If you have specific questions, you can reach us info@capforge.com.

If you didn't get the free copy of the book and other resources, please use this link to get the book and the extras.

Here are some of the more common questions (US and then the second section is International) we are getting that you may have. For more specific questions, just email us!

US Sellers

What Type of Entity Should I Be?

In the US, many of our clients benefit most from being an S Corp. The tax savings are better there than with other entity types. But it depends a bit; if you are planning to have investors, an LLC may be better. Same goes for if you own real estate in the same entity. By and large, however, an S Corp is the best choice. If you are already an LLC, you can still choose to be taxed as an S Corp and benefit from those tax breaks. If you have questions, just ask us!

What state should I register in if I am a US resident?

Pick the state you live in. Picking any other state will just mean you have to register in two states, and you will have the extra cost of doing that with no advantages. You don't get out of state income taxes by registering somewhere else; it goes by where you live.

How do I get an EIN?

An EIN is the ID for a legal entity. You get one by applying to the IRS on their website. If you are a US citizen and have a social security number, you can get one instantly online.

Do I need bookkeeping with my new entity?

Yes. You are legally required to keep books. We can help of course, but if you don't go with us, be sure to get them done! Aside from legally needing them, doing it right helps you pay the right, lowest possible tax, helps you know how to optimize your business for profitability, and if you decide to sell, you'll get a much higher valuation with good financial records.

When do I file taxes?

If you have an S Corp or Multi-Member LLC, the deadline is March 15th. If you have a single member LLC, or C Corp the deadline is April 15th. You can file an extension, which is automatically approved for 6 months, but you still have to pay any taxes owed by the original due date. The extension is only for the filing. If you don't owe, or have a loss, then filing an extension is no problem.

Do I file taxes if I had no activity, or a loss?

If you are a US owned business, not filing if you have a loss or no activity is not as big of a deal. It depends a bit what state you are in as some states have more severe penalties than others. If you are a foreign owned business, however, and you fail to file, even with a loss or no activity, the penalties can be severe. So don't miss your filing deadlines even if you don't owe any taxes!

What do you charge for setting up an entity in the US?

The cost is $500 plus the state filing fees. This includes all the paperwork, getting the EIN, filing the statement of information, etc. plus the consultation on what set up is best for your specific situation.

What is the bookkeeping pricing?

All our bookkeeping pricing is here. We can customize depending on the situation and we also discount for catch up work. The best way to know for sure is get in touch so we can give you an exact quote. Our pricing for tax returns is available for bookkeeping clients once they are on board. We don't tax only clients, unfortunately.

When do I file taxes?

If you have an S Corp or partnership LLC, the deadline is march 15th. For sole props, single member LLCs and C Corps the deadline is April 15th. You can file an extension, which is automatically approved for 6 months, but you still have to pay any taxes owed by the original due date. The extension is only for the filing. If you don't owe, or have a loss, then filing an extension is no problem.

Do I file taxes if I had no activity, or a loss?

If you are a US owned business, not filing if you have a loss or no activity is not as big of a deal, but you still want to claim the losses to offset future profits. It depends a bit what state you are in as some states have more severe penalties than others.

International Sellers FAQs

Here are some of the most common ones we got:

Is my country on the list for Amazon US sellers?

Here is the list: Amazon US Seller Supported Countries

Does my country have a tax treaty with the US?

Here is the list of US tax treaty countries: IRS Tax Treaty List

Can I get a reseller permit without having a US entity?

Yes! You don't need to be a US entity. It may make some things easier, but it's not required!

What bank do you recommend for foreign owners who can't physically visit the US to open an account?

The only bank I am aware of currently where you can open an account without visiting the US in person is Mercury.com Bank.

What type of Entity should I be?

If you are not a US citizen, then by far the best choice is to be a single member LLC. In this case, if you are from a country that has a tax treaty with the US, you will pay no taxes in the US, only in your home country. You still need to file, but opening and maintaining the entity is easy. A C Corp or Multi-Member LLC are other options, but more complex and often with different tax implications. If you have questions about your specific situation, email us for help!

Who do you recommend to set up a Wyoming Single Member LLC for foreign sellers wanting a US entity?

This is who we recommend: Wyoming Agents

Does my entity need a registered agent?

Yes. Every legal entity is required to have a designated person in the state where it is registered who can receive legal documents. If you are a US citizen, and registered in the state where you live, you can be your own registered agent and save the cost of using a service. If you live outside the US, then you need to have a registered agent service in the state where you set up your entity. The cost is usually pretty small for this.

How do I get an EIN?

If you are a foreign registrant, you need to fax in your application. It normally takes 4-8 weeks (and may take longer now with the current COVD-19 situation) to get your EIN assigned. Without an EIN you can't get a US bank account and sometimes not a reseller permit. You may be able to get one over the phone faster.

Do I need bookkeeping with my new entity?

What is the bookkeeping pricing?

When do I file taxes?

If you have a single member LLC the deadline is April 15th. You can file an extension, which is automatically approved for 6 months, but you still have to pay any taxes owed by the original due date. The extension is only for the filing. If you don't owe, or have a loss, then filing an extension is no problem.

Do I file taxes if I had no activity, or a loss?

If you are a foreign owned business, however, and you fail to file, even with a loss or no activity, the penalties can be severe. So don't miss your filing deadlines even if you don't owe any taxes!