Are you thinking of becoming an Amazon seller? You must have heard about the Amazon EIN Number. It’s a number that you, as a seller, need to have to start your business online. It’s from the IRS (Internal Revenue Service). Do you know What’s EIN number is and how to get it?
If you don’t, read this article, which will tell you everything about the EIN number and how it can help your Amazon Business.
Keep an eye out.
What’s Amazon’s EIN Number?
A federal tax identification number is typically one digit in the XX-XXXXXXX format. You must have heard about the IRS (Internal Revenue Service), which collects taxes from all businesses in the United States. Every business needs this number so that the IRS can track their progress and apply taxes accordingly.
If you’re willing to start an online store on Amazon, then it’s crucial for you to have this number. You’ll have to provide this number to Amazon, and then they’ll let you register your seller account. Also, keep in mind that there is nothing like an Amazon EIN number. EIN Number isn’t made specifically for Amazon sellers but for all businesses. Since it’s also used on Amazon, some people have started calling it an Amazon EIN Number. But there is nothing like that.
What’s the Amazon EIN number used for?
As I’ve mentioned earlier, the EIN number is made for businesses by the IRS, which collects taxes from all small and big businesses. People usually try not to pay taxes and hide their business progress so they may not be charged with the tax. To prevent this issue, the EIN number was created, which is now used by the IRS to track businesses and their progress so that it can take the tax from them.
Benefits of Amazon EIN Number
There are many benefits to having an EIN number for your Amazon business. I’ve outlined all of the benefits below.
- Legal Entity: An EIN establishes your business as a legal entity, separating your personal and business finances.
- Tax Compliance: It helps you comply with tax regulations, making it easier to accurately report income and pay taxes.
- Open a Business Account: You’ll need an EIN to open a business account on Amazon, allowing for easier sales and financial management.
- Reduced Personal Liability: It can help protect your personal assets in case of legal issues or debt incurred by your business.
- Wholesale and Tax Exemptions: Some suppliers and wholesalers may require an EIN, enabling you to apply for tax exemptions in certain situations.
- Professional Image: Having an EIN adds professionalism to your Amazon store, potentially boosting customer trust.
- Access to Certain Amazon Services: Some Amazon services and programs, like Brand Registry, may require an EIN for eligibility.
- Credit and Financing: An EIN can be useful when applying for business credit or loans, helping your business grow.
- Employee Hiring: If you plan to hire employees, you’ll need an EIN to report employment taxes.
- Partnerships and Corporations: If your business structure changes to a partnership or corporation, you’ll likely need an EIN.
- Avoid Identity Theft: Using an EIN instead of your Social Security Number reduces identity theft risk.
- Seller Verification: Amazon may use your EIN to verify your identity as a legitimate seller, enhancing the marketplace’s overall security.
Do You Need to Have an Amazon EIN Number?
Whether or not you need an Amazon EIN number on our Amazon business depends on your business. If your business meets the following conditions, then you need to have an EIN number.
- Your business is structured as a partnership, corporation (like a Limited Liability Company), or another entity.
- You operate a business that requires tax returns for products such as firearms, tobacco, and alcohol, or you deal with employment and excise taxes.
- You have employees working for your business.
- Apart from regular wages, you are responsible for withholding taxes on income paid to non-resident aliens.
- Your business participates in a Keogh plan.
- You are affiliated with any of the following types of organisations:
- Non-profit organisations
- Farmers’ cooperatives
- Real estate mortgage investment conduits
- Estates
- Trusts (excluding specific grantor-owned revocable trusts and Exempt Organization Business Income Tax Returns, IRS)
- Plan administrators
When Do You not need to have an EIN number?
If your business meets the following conditions, you don’t need an EIN number to run your business on Amazon. Your SIN number will be more than enough.
- You can use your SSN if you’re a Single-Member LLC, as the IRS considers you a ‘disregarded entity.’
- For most Amazon sellers starting out, no EIN is required; you just need to provide your SSN when signing up.
- If your Amazon sales increase and you form a Single-Member LLC, you may still use your SSN.
- When signing up for Amazon as an individual, you won’t need an EIN; your SSN suffices.
- You might consider a business credit card for your Single-Member LLC to separate business and personal expenses.
You don’t need an EIN number if your business meets these requirements. However, now the question is, how do I apply for an EIN number for Amazon and then get it?
How to Get an Amazon Ein number?
If you don’t have an Amazon EIN number, you can get it by following the step-by-step guide below.
- Head to the IRS website and locate the “Apply for an EIN Online”
- Start by entering your personal details. This includes your full name, address, and your date of birth. The IRS needs this information to identify you as the responsible party for the EIN.
- Now, it’s time to provide your business information. Fill in details like your business name and address, and specify the type of business entity you’re operating. This helps the IRS understand your business structure.
- Take a moment to review all the information you’ve entered. Make sure everything is accurate and up to date.
- Once you’re confident that everything is correct, submit your application.
- The good news is that you won’t have to wait long. You should receive your EIN immediately after submitting your application.
That’s how you can easily get your EIN number.
Do you need to pay to get an EIN number for your number?
You don’t have to pay to get an EIN for your business. It’s free from the IRS. You can get one on the IRS website or by fax or mail; there’s no charge. Beware of third-party services that try to charge you for things the IRS does for free. Save your money, go straight to the source, and don’t spend your money!
Conclusion
Do you need to have an EIN? As long as you’re starting your Amazon seller account as an individual, you don’t need it. However, if you’re starting a professional Amazon account with employees, you need an EIN for your business.
If you have further questions or need assistance with legal matters related to your Amazon business, our Amazon Legal Services are here to help. Schedule a consultation call today to discuss your specific needs and how we can support you with the legal aspects of your Amazon venture.
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