Whether you’ve had your own successful business for years or you’ve just recently decided to dip your toes into the booming world of Ecommerce – opting to sell on large online retailers such as Amazon are great places to start. The only question is, will you need a business license to sell on Amazon?
If you’re currently asking yourself this question, rest assured that you have come to the right place. In this article, we are going to be taking a closer look at whether or not you might need a business license to begin selling on Amazon. So, without further ado, just keep on reading.
What Is A Business License?
Before we get any further into this guide, we first think that it would be a good idea to clearly outline to you what a business license is, exactly. This will help you to better understand whether or not you might need one for Amazon selling.
Generally speaking, a business license is essentially a type of legal document that is issued by a local government, state or other type of authority in order to officially declare that a business is entitled to operate within the area that the license has been granted.
In other words, a business license is essentially a document that legally proves that the government or state that the business license has been granted is officially approved for the business to operate, distribute and sell.
More often than not, a business license also ensures that the business will be able to operate/sell its products elsewhere in the world (this includes Ecommerce) as well as within the state that it has been issued, too.
Do I Need A Business License To Sell On Amazon?
So, do you need to get yourself a business license in order to begin selling on Amazon? Generally speaking, the good news is that you won’t need to get yourself a business license, and there are no set rules in place by Amazon that require you to get yourself a business license, either.
However, while this might certainly be the case – it is worth noting that there are some instances in which you might be required to get yourself one, which is something that you should be aware of when embarking on this business venture.
Wondering why, though? Well, even though the majority of sellers on Amazon won’t be required to get a business license, there are some instances in which your local government or state may make it mandatory for you to obtain a license.
For this reason, if you are thinking about selling on Amazon, we strongly recommend that you take the time to conduct proper research to ensure that you are complying with the rules and regulations set out by your state.
Still, as a general rule of thumb, it is worth noting that Amazon itself does not actually require its sellers to hold their own business license in order to sell via the retailer. The main reason for this is that Amazon allows for consumer goods to be sold on its platform, which means that, for the most part, they do not need to be regulated by the federal government.
When Is It Mandatory To Have A Business License For Amazon?
Now that we have covered what a business license is, as well as outlined that there might be some instances where a license will be required to sell on Amazon – we are now going to be uncovering what they are, exactly.
Generally speaking, as we have already mentioned above, it is highly likely that you are not going to need to worry about getting a business license if you are thinking about selling some items on Amazon.
However, there are some instances in which getting a business license will be mandatory – and this is something that you should be aware of in order to ensure that you don’t find yourself in hot water later down the road.
That being said, even though Amazon does not currently have any rules set in place surrounding business licenses (as we have said, they don’t ask for them at all) there is a chance that the state you live in could require your business to have one regardless of this.
The rules and regulations surrounding business licenses often tend to vary from state to state, which is why we recommend that you make sure to check whether or not you’ll need one to operate your business within the state you reside in or plan to operate the business from.
It is also worth noting that there are some types of businesses that will require a license while others won’t, which is also something that you should keep in mind and research prior to selling.
Frequently Asked Questions
Can I Sell On Amazon Without A Registered Business?
No, the good news is that you don’t need to be a registered business in order to begin selling products on the Amazon platform. That being said, while Amazon doesn’t require you to be a registered business, your local government or state might require you to do so, which is something that you will need to do your research on.
Can You Sell Products Without A Business License?
As we have already mentioned in this guide, it is not a requirement by Amazon to have a business license to begin selling on their platform. However, there might be requirements by your state’s government to have a business license, depending on what type of business you have.
What Documents Do I Need For An Amazon Seller?
Even though it is not necessarily a must to have a business license in order to sell on Amazon legally – you will be required to provide some documentation. These include the following:
- Business email address/Amazon customer account details
- Tax information as required
- Contact information
- Credit card details
- Government ID
The Bottom Line
There we have it. You’ve made it to the end of the guide! Just to sum up everything that we have discussed above, it is highly likely that you aren’t going to need to get yourself a business license in order to begin selling on Amazon.
This is because Amazon allows for consumer goods to be sold on its platform, which means that the federal government does not need to approve them. That being said, however, it is important to note that there may be some instances in which you might need to get yourself a business license in order to sell on Amazon legally.
The main instance in which this would be the case is if you live in a state where it is legally required for all businesses (or certain businesses) to have their own business license in order to legally operate.
Due to this, if you are planning to take the next step in your business venture and would like to try selling on Amazon – we highly recommend that you first take the time to do your research into whether or not it is a requirement within your state to register for a business license. This will ensure that you are able to legally sell on Amazon without any issues. Thank you for reading!
Paul Martinez is the founder of EcomSidekick.com. He is an expert in the areas of finance, real estate, eCommerce, traffic and conversion.
Join him on EcomSidekick.com to learn how to improve your financial life and excel in these areas. Before starting this media site, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.