EIN Number for Amazon

How to Get an EIN Number for Amazon: A Complete Guide

If you’re planning to sell on Amazon, you may be wondering whether you need an EIN number (Employer Identification Number) or ITIN (Individual Taxpayer Identification Number) to get started. The short answer is: yes, you do. Both of these numbers are essential for tax purposes and to help you establish your business in the U.S. In this article, we’ll explore what an EIN number is, how to get one, and why it’s crucial for your Amazon business.

Why Do You Need an EIN to Sell on Amazon?

To sell on Amazon in the U.S., you must provide identification numbers like an EIN or ITIN for tax reporting purposes. Amazon sellers must disclose their sales and tax numbers to the IRS at the end of each fiscal year. This means that without an EIN, Amazon cannot report your earnings to the IRS, which could result in potential legal and financial complications.

Here’s a breakdown of why having an EIN is essential for selling on Amazon:

  • Tax Reporting: Amazon uses the EIN to report your sales to the IRS.
  • Compliance with U.S. Law: An EIN is required by U.S. Customs for importing goods.
  • Preventing Multiple Accounts: Amazon uses your EIN to ensure that sellers don’t create multiple accounts, which is against their policies.

Does Amazon Accept ITIN Numbers?

Yes, Amazon does accept ITIN numbers. However, this is generally for individuals or sole proprietors. If your business scales and you have employees, or if you operate as a corporation or partnership, you will need to switch from an ITIN to an EIN number.

If you’re just starting out as an individual seller, you can use your ITIN to begin selling on Amazon. But if you plan to grow your business, you will eventually need to apply for an EIN number.

Apply for an EIN Number for Amazon

How to Apply for an EIN Number for Amazon

Getting an EIN is a relatively straightforward process, and there are several ways to apply, including online, via mail, fax, or phone. Follow these steps to secure an EIN for your Amazon business:

  1. Determine Your Eligibility: To apply for an EIN, you must have a valid taxpayer identification number, such as an SSN (Social Security Number) or ITIN.
  2. Complete Form SS-4: This is the IRS form used to apply for an EIN. You can find the form on the IRS website or contact a tax professional for help. Make sure you fill out all sections accurately, especially the business structure and contact information.
  3. Submit the Application: You can submit the form through several methods:
    • Online: The IRS offers a streamlined, fast online application process. It’s the quickest way to obtain an EIN.
    • Mail or Fax: If you prefer traditional methods, you can mail or fax the SS-4 form to the IRS, though processing may take several weeks.
    • Phone: For international applicants, the IRS provides a toll-free number to apply for an EIN over the phone.

Can Non-U.S. Residents Get an EIN?

Yes, non-U.S. residents can apply for an EIN even without an SSN or ITIN. You will need to complete Form SS-4 and indicate that you are a foreign national. Non-U.S. residents typically apply via mail, fax, or by calling the IRS directly. While this process may take longer than for U.S. residents, it is still relatively straightforward.

Do You Need an ITIN or SSN to Get an EIN?

You do not necessarily need an ITIN or SSN to acquire an EIN. However, certain factors may impact your EIN application, such as the structure of your business (LLC, S-Corporation, C-Corporation), whether you’re a U.S. resident, and if your business is associated with a U.S. accountant or lawyer. For non-U.S. residents, applying for an EIN without an SSN or ITIN may require additional steps, but it is entirely possible.

Key Reasons to Get an EIN for Amazon Sellers

  1. Seller Identification: Amazon requires an EIN to uniquely identify sellers, preventing issues like duplicate accounts.
  2. Tax Purposes: Your EIN will be used for reporting your earnings to the IRS.
  3. Customs Compliance: U.S. Customs and Border Protection (CBP) also requires an EIN to help identify shipments and expedite the importing process, ensuring your goods reach Amazon warehouses more efficiently.

Who Is Eligible to Get an EIN?

Almost any type of business entity can obtain an EIN, including:

  • LLCs (Limited Liability Companies)
  • Sole Proprietors
  • Partnerships
  • Corporations (S-Corp or C-Corp)

Even if you’re a sole proprietor without employees, you’ll need an EIN if you pay $600 or more in business expenses annually. If you initially get an EIN as an individual, remember that you’ll need to apply for a new EIN if you later decide to form an LLC or corporation.

How to Apply for an ITIN Number for Amazon?

If you’re not eligible for an SSN but still need to sell on Amazon, you may need to apply for an ITIN. Here are the steps:

  1. Fill Out Form W-7: This is the application form for an ITIN.
  2. Submit Required Documents: Along with the form, you will need a notarized copy of your passport and documentation proving your foreign status.
  3. Apply to the IRS: You can mail the form and documents directly to the IRS or seek professional assistance to speed up the process.

When Is an EIN Required for Your Amazon Account?

Even if you are a single-member LLC, you may choose different tax classifications, such as S-Corp or C-Corp. In this case, the IRS will require an EIN for tax reporting purposes. Be sure to select the correct tax classification on the Amazon seller platform to avoid complications with the IRS.

Conclusion: Get Your EIN to Start Selling on Amazon

Obtaining an EIN is a crucial step for anyone looking to sell on Amazon, whether you’re a small individual seller or a growing business. It not only helps you stay compliant with tax laws but also makes it easier to manage your Amazon business efficiently.

If you need any help getting your EIN number for Amazon, don’t hesitate to contact us via email at info@rowallc.com.

FAQs

What is an EIN Number?

An Employer Identification Number (EIN) is a unique nine-digit number issued by the IRS to identify businesses for tax purposes. It’s like a Social Security Number but for businesses.

Do I need an EIN to sell on Amazon?

If you are registering your business as an LLC, partnership, or corporation, you will need an EIN. However, if you’re a sole proprietor, you can use your Social Security Number (SSN) instead, though using an EIN is still recommended.

How do I apply for an EIN?

You can apply for an EIN online through the IRS website, by fax, or by mail. The online application is the fastest and most efficient way to obtain your EIN.

Is getting an EIN free?

Yes, obtaining an EIN from the IRS is completely free.

How long does it take to get an EIN?

If you apply online, you can receive your EIN immediately after completing the application. Applications by mail may take up to four weeks.

Can non-US residents get an EIN for Amazon?

Yes, non-US residents can apply for an EIN if they plan to conduct business in the United States, including selling on Amazon.

What information is required to apply for an EIN?

You’ll need the name of your business, business structure, the reason for applying, and your Social Security Number (or Individual Taxpayer Identification Number).

Can I use my EIN to open a business bank account for Amazon?

Yes, many banks require an EIN to open a business bank account. Having an EIN helps separate your personal and business finances.

What if I lose my EIN?

You can retrieve your EIN by contacting the IRS. You’ll need to provide personal information to verify your identity.

Do I need an EIN for each Amazon seller account I open?

No, you only need one EIN for your business, regardless of how many Amazon seller accounts you manage.

an I change my EIN after getting it?

You generally cannot change an EIN once it’s issued. However, if your business structure changes (e.g., from sole proprietorship to LLC), you may need to apply for a new EIN.

What’s the difference between an EIN and a TIN?

An EIN is a type of Taxpayer Identification Number (TIN). Other types of TINs include Social Security Numbers (SSN) and Individual Taxpayer Identification Numbers (ITIN).

How do I know if my business needs an EIN?

If your business has employees, operates as a corporation or partnership, or is subject to excise taxes, you will need an EIN.

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