Amazon seller license guide
Last updated: August 1, 2026
You do not need one national “Amazon business license” just to open a seller account. Amazon says a person can register as an individual and does not have to form an LLC or other company first.
But your Amazon business may still need a city or county license, a state seller’s permit, a resale certificate, a DBA filing, home occupation approval, an EIN, employer accounts, or product permits. The answer depends on your address, products, sales channels, and where inventory is stored.
Bottom line
Amazon approval is not government approval. Your seller account lets you use Amazon’s platform. It does not replace local licensing, state tax registration, zoning, product safety rules, import rules, or federal tax duties.
Many small Amazon sellers should check three places before listing products:
- Your city or county for a business license, local tax registration, and home business rules.
- Your state tax agency for seller’s permit, resale certificate, marketplace seller, and filing rules.
- Amazon Seller Central for account verification, product approval, restricted product, and marketplace tax rules.
For a plain-English explanation of the terms, read business license vs. LLC vs. DBA vs. seller’s permit.
Quick start: what to check before you sell
- Write down your real business location. Use the home, office, warehouse, storage unit, prep center, or other place where you manage the business or keep inventory.
- List every product type. Separate ordinary resale goods from food, cosmetics, supplements, children’s products, electronics, imported goods, medical items, and other regulated products.
- List every sales channel. Note Amazon, your own website, Shopify, social media, wholesale, pop-ups, and in-person sales. Tax duties may differ by channel.
- Check local rules. Search the official city and county websites for “business license,” “business tax,” “home occupation,” and “zoning.”
- Check your state tax agency. Ask whether an Amazon-only seller needs a seller’s permit, whether you must file returns, and whether you may use a resale certificate.
- Check the product before buying stock. Confirm Amazon approval and government product rules before you place a large order.
- Save proof. Keep permits, account numbers, tax notices, supplier invoices, resale certificates, Amazon reports, and agency emails in one folder.
What Amazon requires and what it does not replace
Amazon’s current seller registration guide says the signup process asks for business or individual details, seller information, billing information, store and product information, and identity verification.
Amazon also says you do not have to be an LLC or registered company to sell. An individual can choose the individual option during registration. This answers the platform question, but not the license question.
| Item | What it does | What it does not do |
|---|---|---|
| Amazon seller account | Lets you list and sell products through Amazon after verification. | Does not issue a city license, seller’s permit, zoning approval, or product permit. |
| Amazon category or product approval | Lets you list a category, brand, or product that Amazon controls. | Does not prove the product follows every federal, state, or local rule. |
| Marketplace Tax Collection | Allows Amazon to collect and remit certain taxes on covered marketplace orders where the law requires it. | Does not handle every seller registration, return, local license, income tax, or off-Amazon sale. |
| FBA | Stores, picks, packs, ships, and handles returns for products you send to Amazon. | Does not remove tax, product, import, or inventory-location questions. |
Amazon tells sellers to review its restricted products policy before listing. A product may also require approval under Amazon’s category and product approval rules.
Federal, state, county, and city requirements
There is no single office that clears an Amazon seller for the whole country. Each government layer handles a different job.
| Layer | What to check | Common Amazon seller trigger |
|---|---|---|
| Federal | EIN, federal taxes, advertising, imports, product safety, food, cosmetics, supplements, and other regulated goods. | You import products, make product claims, hire workers, or sell a federally regulated item. |
| State | Seller’s permit, sales tax account, resale certificate, entity filing, DBA rules, employer accounts, and state product rules. | You sell taxable goods, buy inventory for resale, store stock, hire help, or form an LLC. |
| County | County business license, fictitious name, health permit, zoning in unincorporated areas, and local taxes. | Your business address is outside city limits or your county handles the filing. |
| City or town | Business license, business tax certificate, business tax receipt, home occupation approval, zoning, signs, and occupancy. | You run the store from home, an office, warehouse, or other address inside the city. |
| Private rules | Amazon policies, supplier terms, brand authorization, lease, HOA, insurance, and warehouse rules. | You use a marketplace, rented home, storage space, prep center, or gated community. |
The U.S. Small Business Administration license guide explains that requirements depend on business activity, location, and government rules. The SBA also notes that your business location affects taxes, zoning, and regulations.
For more detail on online businesses as a whole, see whether online businesses need a business license.
License checklist by Amazon selling model
Your operating model often matters more than your sales volume. Use this table to find the checks that fit your setup.
| Selling model | Main checks | Watch for |
|---|---|---|
| Small home-based seller shipping orders | Local business license, home occupation or zoning, seller’s permit, DBA, and product rules. | Inventory limits, carrier pickups, customer returns, signs, lease, and HOA rules. |
| Amazon-only marketplace seller | Local license, state marketplace seller guidance, resale certificate rules, and Amazon verification. | Some states excuse an Amazon-only seller from a seller’s permit; others may still require registration or tax filings. |
| FBA private-label seller | All local and state checks, plus FBA inventory locations, product testing, labeling, supplier records, and trademark or brand issues. | Inventory in another state can create tax presence under that state’s rules. |
| Retail arbitrage or online arbitrage seller | Local license, state sales tax rules, invoices, product authenticity, condition, recalls, and restricted products. | Retail receipts may not satisfy every Amazon or brand-document request. |
| Importer buying from overseas | Customs, country-of-origin marking, product safety, FDA or other agency rules, tariffs, and importer records. | The seller or importer may carry duties that a foreign supplier does not handle. |
| Seller using Amazon plus a direct website | Separate Amazon marketplace sales from direct sales, then check direct-sale tax registration and filing duties. | Amazon’s tax collection does not normally cover orders placed on your own site. |
A broader checklist is available in our online store business license guide. If you also sell through your own hosted store, compare the rules in our Shopify seller license guide.
Marketplace tax does not always end your state duties
Amazon says it is a marketplace facilitator for marketplace tax purposes. Its Marketplace Tax and Regulatory Fee FAQ explains how marketplace collection works. In covered places, Amazon collects tax from the buyer and remits it for covered Amazon orders.
That does not mean every seller can skip state registration. State rules differ, and your answer can change if you make direct sales, store inventory, sell wholesale, use a resale certificate, or owe a state business tax.
Three items sellers often confuse
- Seller’s permit or sales tax permit: A state registration tied to taxable sales. States use different names.
- Resale certificate: A document used under state rules when buying qualifying inventory for resale. It is not a general shopping discount.
- Local business license: A city or county registration or operating approval. It is separate from state sales tax registration.
Read our full comparison of a seller’s permit vs. a business license before applying.
Why you must check your own state
Official state guidance shows that there is no one nationwide answer:
- California says a home-based seller whose merchandise sales are all handled by a registered marketplace facilitator may not need a California seller’s permit. See the California tax guide for home-based businesses and the state’s Marketplace Facilitator Act guide.
- Wisconsin says a seller’s permit is not required for marketplace sellers who only sell through a marketplace provider that collects, reports, and remits the tax. See the Wisconsin seller’s permit FAQ.
- Washington says remote marketplace sellers may still need to register, and Washington has business and occupation tax rules that are separate from retail sales tax. See the Washington marketplace seller guide.
Do not copy another state’s rule. Use the IRS directory of state government websites to reach your own state’s tax and business pages.
FBA inventory can change the tax picture
Fulfillment by Amazon lets sellers send inventory to Amazon, which stores, packs, and ships orders. The convenience does not remove the need to ask where your inventory is held and what that means under state law.
Some states treat inventory held by a marketplace or third party as physical presence. Washington, for example, says a stock of goods in the state, including inventory held by a marketplace facilitator or other third party, can create physical presence nexus. See Washington’s official physical presence nexus guidance.
This does not mean every FBA seller must register in every state where Amazon has a building. State law, inventory facts, marketplace rules, tax type, and filing thresholds all matter. Ask the state tax agency these exact questions:
- Does inventory stored for me in this state create sales tax, income tax, franchise tax, or gross receipts tax duties?
- If Amazon collects sales tax, must I still register or file a return?
- Does the state offer an exception for marketplace-only sellers?
- How should I report marketplace sales, direct sales, wholesale sales, and exempt sales?
City and county licenses for home-based Amazon sellers
Many Amazon sellers operate from a home even when Amazon stores part of their inventory. Your home may still be the place where you manage listings, keep records, receive returns, store products, or pack some orders.
A local requirement may be called a business license, business tax certificate, business tax receipt, occupational license, privilege license, or local registration. Home approval may be called a home occupation permit, zoning clearance, or home-based business permit.
Local governments may ask about:
- Inventory stored in a house, apartment, garage, shed, or storage unit.
- Delivery trucks, carrier pickups, returns, and packaging waste.
- Customers, helpers, or employees visiting the property.
- Signs, business vehicles, noise, odors, chemicals, or fire risk.
- Whether the home stays mainly residential.
Official city examples show why the name and rule must be checked locally:
- Los Angeles requires people and entities conducting business in the city to obtain a Business Tax Registration Certificate.
- Seattle says anyone doing business in the city must generally have a Seattle business license tax certificate, subject to its rules and exemptions.
- Chicago says a city business license is required for a home-based business and limits which activities may operate as a home occupation.
These are examples, not national rules. Check your own address. If you live outside city limits, the county may be the main zoning or licensing office.
Read the license rules for selling online from home and our guide to home occupation permits.
Do you need an LLC, DBA, or EIN?
LLC
Amazon does not require every seller to form an LLC. An LLC is a state business structure, not an operating license. Some sellers choose one for ownership, contracts, banking, tax, or liability reasons, but forming it does not clear local licenses or product rules.
See why an LLC may still need business licenses.
DBA, assumed name, or fictitious name
You may need a name filing if your Amazon store name differs from your personal legal name or registered entity name. The office may be the state, county, or city. The SBA’s business registration guide explains that DBA rules depend on location.
EIN
An EIN is a federal tax identification number. It is not a business license. Some sole proprietors can use a Social Security number for federal tax purposes, while businesses with employees and many entities need an EIN.
The IRS EIN application is free. Do not pay a private website just to obtain a basic EIN from the IRS.
Products that may need extra permits or records
A general business license does not approve a regulated product. Amazon approval also does not replace government rules. Check the product before you buy stock, print labels, or make claims.
Consumer products
Manufacturers, importers, distributors, and retailers may have testing, certification, labeling, recall, and reporting duties. Use the CPSC Online Sellers’ Safety Guide.
Food and dietary products
Food businesses may face FDA, state, and local rules. Start with the FDA’s guide to starting a food business.
Cosmetics and body products
Homemade does not mean unregulated. Review the FDA’s small-business cosmetics fact sheet.
Imported products
Importers should check classification, marking, duties, agency rules, and records. Begin with U.S. Customs and Border Protection importing guidance.
Product claims also matter. The FTC says advertising must be truthful, not deceptive or unfair, and supported by evidence. Review the FTC advertising basics before using health, performance, savings, “Made in USA,” environmental, or comparison claims.
The INFORM Consumers Act may affect larger sellers
The federal INFORM Consumers Act places duties on online marketplaces and can lead Amazon to request more information from certain sellers.
The FTC says a “high-volume third party seller” generally means a seller that, in any continuous 12-month period during the past 24 months, had at least 200 separate sales or transactions of new or unused consumer products and at least $5,000 in gross revenue on that marketplace.
For covered sellers, the marketplace must collect and verify bank, tax ID, and contact information. The FTC also says sellers must certify or update information at least once a year. Higher-volume sellers with at least $20,000 in annual gross revenue on that marketplace can face added disclosure rules, subject to the law’s details and limited exceptions.
Read the FTC’s current guide on what third-party sellers need to know about the INFORM Consumers Act. Give sensitive information only through a verified Amazon channel, not through an unexpected email link.
Common mistakes Amazon sellers make
- Thinking an Amazon account is a business license. It is a platform account, not a government approval.
- Forming an LLC and stopping there. The LLC does not replace local, tax, zoning, or product permits.
- Assuming Amazon sales tax collection covers everything. It may not cover state registration, returns, direct sales, income tax, gross receipts tax, or local licensing.
- Using a resale certificate for business supplies. Resale treatment is normally for qualifying items bought for resale, not equipment or personal purchases.
- Ignoring the home address. Inventory, pickups, employees, returns, and customer traffic can trigger local rules.
- Buying inventory before checking restrictions. Amazon or a government agency may restrict the product, claim, label, ingredient, brand, or import.
- Relying on an old blog for a fee or deadline. Use the current official agency page and save the date you checked it.
- Mixing marketplace and direct sales records. Keep separate reports so you can show what Amazon collected and what you handled yourself.
What to ask your city, county, or state
Local license script
“I run an Amazon retail business from my home at [address]. I manage listings here and may store [type and amount of inventory]. Customers do not visit. Do I need a local business license, business tax registration, home occupation approval, or zoning clearance? Are there limits on storage, deliveries, employees, or carrier pickups?”
State tax script
“I sell [products] through Amazon. Amazon collects marketplace sales tax on covered orders. I also [do/do not] sell through my own website or in person, and I [do/do not] use FBA. Do I need a seller’s permit or other state tax account? Must I file returns? What records should I keep for marketplace sales?”
Ask the agency to send the answer by email or point you to the rule, application, or official FAQ. Save the response with the date.
Related business license guides
Start with the closest next-step guides, then explore other BLG location and licensing resources.
Best next guides
Explore more BLG guides
Frequently asked questions
Do I need an LLC to sell on Amazon?
No. Amazon says an individual can register without forming an LLC or other company. An LLC is a state business structure, not a business license. You may still need local licenses, tax registrations, zoning approval, or product permits.
Does Amazon give sellers a business license?
No. Amazon gives you access to its selling platform after registration and verification. Government agencies issue business licenses, seller’s permits, tax accounts, zoning approvals, and product permits.
Do I need a seller’s permit if Amazon collects sales tax?
Maybe. Some states say an Amazon-only marketplace seller may not need a seller’s permit when the marketplace collects and remits the tax. Other states may still require registration, returns, or other business taxes. Direct sales and inventory can also change the answer.
Do home-based Amazon sellers need a local license?
They may. A city or county can require a business license, business tax registration, home occupation permit, or zoning approval. Rules may depend on inventory, deliveries, returns, customer visits, employees, signs, and the type of product.
Does FBA create tax registration duties in other states?
It can. Some states treat inventory stored by a marketplace or third party as physical presence. The result depends on the state, tax type, marketplace rules, and your facts. Ask each relevant state tax agency whether registration or filing is required.
Can I use a resale certificate to buy Amazon inventory?
You may be able to use one for qualifying goods bought for resale if your state allows it and you complete the certificate correctly. It is not for personal purchases, equipment, or supplies your business uses.
Does Amazon approval mean my product is legal to sell?
No. Amazon approval does not replace federal, state, or local product rules. Sellers may still need testing, certification, labeling, registration, import records, health permits, or other documents.
Do I need an EIN to sell on Amazon?
Not every individual seller needs an EIN, but many entities and employers do. An EIN is a federal tax ID, not a business license. Check the IRS EIN rules for your business structure and tax situation.
Disclaimer
This article is for general information only. It is not legal, tax, accounting, customs, product safety, insurance, or professional advice. Amazon policies and federal, state, county, and city rules can change. Fees, forms, portals, filing duties, and renewal dates also vary by place and business. Confirm current requirements with Amazon, the official government agency, or a qualified professional before you sell, import products, use a resale certificate, or decide not to register.
Review note
Last updated: August 1, 2026
Next review: November 1, 2026
This guide was reviewed for Amazon seller registration, marketplace tax collection, FBA inventory issues, federal INFORM Consumers Act rules, state marketplace seller examples, local home-business examples, EIN guidance, and current product compliance sources.