Am I operating on Amazon through my LLC?
Please help me understand this if you could! I have lots of questions actually, but to simplify things my main question is, am I actually operating through my LLC on Amazon? And are there any implications if I'm not?
I have doubts, because Amazon states and requires the following when submitting tax information:
"For single-member LLCs where the owner is an individual, select "Individual/sole proprietor". "
and:
"The name on the "Name" line must be the name shown on the income tax return used to report the income. The name of the entity entered on the "Name" line should never be a disregarded entity."
I do use the trademark that the LLC owns, does that make any difference? The whole reason I'm asking this is because I would like to be operating through the LLC for the limited protection it provides. And with the insurance Amazon requires, Amazon says it must match the name on the "Name" line. And speaking with the insurance company, I must use "Individual/sole proprietor" to use my name.
I currently have the insurance but it's under the company name, but Amazon won't accept it.
Am I operating on Amazon through my LLC?
Please help me understand this if you could! I have lots of questions actually, but to simplify things my main question is, am I actually operating through my LLC on Amazon? And are there any implications if I'm not?
I have doubts, because Amazon states and requires the following when submitting tax information:
"For single-member LLCs where the owner is an individual, select "Individual/sole proprietor". "
and:
"The name on the "Name" line must be the name shown on the income tax return used to report the income. The name of the entity entered on the "Name" line should never be a disregarded entity."
I do use the trademark that the LLC owns, does that make any difference? The whole reason I'm asking this is because I would like to be operating through the LLC for the limited protection it provides. And with the insurance Amazon requires, Amazon says it must match the name on the "Name" line. And speaking with the insurance company, I must use "Individual/sole proprietor" to use my name.
I currently have the insurance but it's under the company name, but Amazon won't accept it.
4 respuestas
Seller_EkbLZUYSpmJEy
"For single-member LLCs where the owner is an individual, select "Individual/sole proprietor". "
Sole Proprietor LLC usually passes the tax through to the individual who is the sole proprietor so ... tax wise ...
Do you file your taxes as individual using a schedule C for the business income?
OR
Do you file your business IRS taxes separate from your individual IRS taxes?
How the taxes are file with IRS is how Amazon wants you to create your account as they will be providing and reporting a 1099K to the owner of the account (either individual or business).
As an individual, you will be verified from your photo id, bank account / credit card account and a utility bill (like electric, gas, water).
As a business, you have to also establish your ownership over the business name by providing proof
Review these two videos on insurance
You can use the trademark but this goes back to showing that you have ownership over the LLC and the LLC has ownership of the trademark.
Familiarize yourself with these 3 areas in your account information area ...
- Legal Entity
- Business Address
- Official Registered Address
Understanding those 3 areas should help you understand how to set your account up and, hopefully, the two Seller University video on insurance will get you through that one.
Seller_EkbLZUYSpmJEy
Then Legal Entity is you and the address that you are at and have your utilities at.
Business Address is where you could use the LLC name with the address that the LLC operates from ( note - this is what the Amazon customers see )
Official Registered Address is where the LLC is legally registered at ( should be on the LLC papers ).
Review this link
The trademark name is your brand name on the product. The LLC is your business name. Insurance is normally issued to the business so would be in the LLC name. The insurance may have a clause that covers you as an individual and possibly the trademark name. And, if we remember correctly, Amazon is listed also. This is where you would talk to your insurance person (and just make sure you let the insurance person know what Amazon needs as representation on that policy ... could only suggest reviewing the videos again.).
On your trademark filing, does it show you as a person or the LLC as the owner of the trademark? If the LLC is listed as the owner, then you are indirect in trademark ownership ( as you own the LLC but would not be on the trademark filing ). Yes you can use the trademark on your listings but, when Amazon needs verification, you will have to establish that you own the LLC and that the LLC owns the trademark. You have the documentation for the LLC so this should not be an issue.
The trademark name in your case is used on the products. The LLC is the business name that you operate under. You are the legal entity over the LLC and the trademark name.
It might be wise for you to talk to the lawyer who set up the LLC for you, your accountant (CPA) and your insurance person just to make sure you are setting yourself up correctly for your business. You are asking good questions but some of them lean towards knowing how to operate a business rather than just how to operate within Amazon guidelines and policies. We don't want to step outside our lane in helping you.
Wish you success!
