Amazon FBA can store and ship your products while you run the business abroad. That does not mean the business has no US activity. Your inventory is physically somewhere, and its location matters.
For a nonresident seller, the useful starting point is a map: who owns the business, where the goods move, which channels sell them, and what Amazon deducts before paying you.
First, identify who owes tax and who files
A US single-member LLC is usually disregarded for federal income tax unless it elects corporate treatment. The IRS looks through it to its owner. This guide assumes that owner is a nonresident for US tax purposes. Living abroad alone does not establish that status, especially for US citizens or people meeting US residency tests.
A domestic multi-member LLC normally follows partnership rules and generally files Form 1065. A corporate election changes the analysis. See our foreign-partner partnership guide before adding an owner.
For a wholly foreign-owned disregarded LLC, reportable related-party transactions trigger Form 5472 with a pro-forma Form 1120. Owner funding, withdrawals and certain expenses paid personally can count, even before the first sale. The IRS Form 5472 instructions explain this separate information-filing requirement.
US inventory needs its own federal review
Fulfillment by Amazon means Amazon handles storage and fulfillment. It does not decide your federal income tax position.
US inventory and the activities around it may create a US trade or business and effectively connected income, or ECI. The IRS ECI guidance specifically discusses profits from US sales of purchased inventory.
The answer needs more than your home address. Give your adviser the warehouse locations, supplier contracts, ownership terms, and details of US employees or representatives. Purchased goods and goods you produce have different sourcing rules. Treaty protection, including any permanent-establishment test, needs a separate review of the actual treaty and your eligibility.
A US LLC, employer identification number (EIN) and bank account do not alone establish ECI. The EIN is the company’s US tax ID. None of these establishes an exemption either. Our ECI guide explains the tests without treating every FBA seller alike.
Amazon’s sales-tax collection is only one part
Sales tax is separate from federal income tax. Physical inventory can create state tax nexus, meaning a sufficient connection for state obligations. Economic nexus can arise from sales even without inventory.
Marketplace-facilitator rules often make the marketplace collect and remit sales tax on covered sales. They do not create one nationwide exemption from seller registration, returns, state income taxes or other business taxes.
California illustrates the difference. Its marketplace guidance generally exempts qualifying marketplace-only sellers from registration. But its example of an out-of-state seller with California inventory and direct website sales requires registration and returns.
Track marketplace and direct sales separately. If you also sell through your own store, read the Shopify tax guide. Do not cancel an existing permit simply because Amazon collects tax. Check that state’s closing and final-return requirements first.
Reconcile sales to the payout, not just the bank
The bank deposit is what remains after settlement adjustments. It is not your gross sales and it is not necessarily your profit.
Keep a monthly reconciliation with these parts:
| Record | What it helps explain |
|---|---|
| Order and settlement reports | Sales, refunds, discounts and payout timing |
| Referral, storage and fulfillment fees | Costs deducted before the deposit |
| Inventory movement and stock reports | Goods held, moved, sold, lost or returned |
| Supplier and freight invoices | Inventory cost and transport charges |
| Reimbursement details | Which loss or charge Amazon adjusted |
| Owner transfers | Funding and withdrawals, separate from sales |
For example, a settlement can contain sales from one period and a refund from an earlier period. Match both to their underlying orders. Do not force the difference into an unexplained expense.
Unsold inventory also needs attention. Buying stock is not always the same as deducting its full cost immediately. Agree the inventory accounting method with your preparer.
Keep importing and home-country tax separate
An importer of record takes responsibility for the import entry. Amazon’s international-to-US selling guide says you or your provider must handle importer and exporter responsibilities. Amazon does not take responsibility for customs duties on your FBA inventory.
Confirm the importer, customs broker and delivery terms before shipping. Keep customs entries and duty invoices with the stock records. Customs duties are not the same charge as sales tax or federal income tax.
Your country of tax residence may also tax the business income or treat the LLC as a separate company. Ask a local adviser about classification, reporting and any available foreign tax relief. Keeping profit in a US account does not settle those questions.
Prepare the account records before year end
Keep the legal name, ownership and tax classification consistent across your books and platform documents. An EIN does not by itself make a foreign-owned disregarded LLC a US person for withholding documentation.
The foreign owner generally provides the appropriate W-8 documentation, rather than a W-9 solely because the LLC has an EIN. Income type can change the form. If Amazon’s interview does not fit your structure, seek platform support instead of choosing an inaccurate answer. Our W-9 and W-8 guide covers the owner rule.
FAQ
Does FBA automatically mean I owe US income tax?
No single platform label decides it. US inventory is a significant fact that needs analysis, not a reason to assume either no tax or automatic tax on every sale.
Do I file Form 5472 if the store made no sales?
A foreign-owned disregarded LLC files when it had reportable transactions. Funding the company or paying its setup expenses can create that requirement before revenue starts.
Does Amazon’s tax collection cover my own website?
Generally, marketplace collection covers the marketplace’s transactions. Your direct sales need their own state-by-state review.
Build the records around how you sell
Our accounting service provides monthly reconciliation and financial statements. Share your settlement, inventory and import records so we can confirm the bookkeeping scope. Federal filings are separate from standalone accounting; do not assume sales-tax registrations or customs work are included.
Sources checked October 2026: IRS, California Department of Tax and Fee Administration, and Amazon’s official selling guidance.
