Florida LLC for Amazon FBA: Complete Guide With Benefits, Taxes & Setup

Selling on Amazon FBA looks deceptively simple. You choose a product, ship it to Amazon, and then Amazon handles storage, packing, and delivery. So it feels like the hard part is done.

But that’s only the fulfillment part. 

Underneath, you’re dealing with customer issues, refunds, disputes, and chargebacks. At the same time, you have to keep your taxes clean and your records consistent. And if something goes wrong with the product, the legal risk is yours, not Amazon’s. 

So, the moment you start selling on Amazon, your setup starts to become important.

The good news is that you don’t need to overcomplicate or overthink this matter.

You just need a structure that makes your business look real, verifiable, and organized.

This is why many sellers choose a Florida LLC for Amazon FBA.  It provides a clear Amazon FBA business structure that aligns across state records, your bank account, and Amazon Seller Central.

Let’s walk through what a Florida LLC actually helps with, how taxes work, what compliance looks like, and when it may not be the right choice. 

Ready? Let’s dive right into it!

Why Amazon Sellers Choose a Florida LLC

Here are a few specific reasons Amazon sellers choose a Florida LLC.

No Personal State Income Tax (Owner-Level Savings)

Florida doesn’t charge personal state income tax.

If your LLC’s profit flows to you (which is how most single-member LLCs and partnerships work), you’re taxed federally, but Florida doesn’t add a personal state income tax layer on top. 

For many owners, that’s a meaningful difference compared to states with higher personal income tax. This benefit is strongest when you actually live in Florida. If you live elsewhere, your home state may still tax you.

Simple Ongoing Maintenance (Low Compliance Friction)

Florida is an attractive state for an LLC, especially for Amazon FBA sellers, due to its relatively simple compliance requirements.

Unlike states with more complex, recurring administrative tasks, Florida’s ongoing compliance is typically limited to a predictable yearly state filing. 

This streamlined process allows business owners to focus on the demanding operational aspects of selling on Amazon (like inventory, advertising, and cash flow) without the added burden of state-imposed complexity.

While this doesn’t offer a legal advantage, it makes the Florida LLC significantly easier to manage.

Cleaner Setup When You Operate From Florida (Less Mismatch)

Like we mentioned earlier, forming your LLC in Florida makes sense if you live and operate there, as it ensures your business information, like your entity state, business address, bank verification, and tax registrations, is consistent.

This consistency helps Amazon sellers avoid potential issues, such as being questioned about why their company is registered in one state but operating in another.

Important Note: If you live elsewhere but choose to form your LLC in Florida, you will likely have to register it as a “foreign LLC” in your actual operating state. This results in additional fees and extra paperwork.

Strong Logistics Ecosystem For Physical Products

Florida has major ports and a large shipping/warehousing ecosystem.

If you import inventory or use U.S. 3PLs/prep centers, being in a logistics-heavy region can make inbound shipping and inventory handling smoother, especially for sellers moving physical goods at scale.

This matters most when your supply chain actually touches Florida (imports, 3PL relationships, local warehousing). If your inventory flow is elsewhere, this reason may not apply.

“Normal” Entity For Banking And Vendor Onboarding

A Florida LLC is a widely recognized and standard business structure in the U.S.

Choosing a common, straightforward setup like this is beneficial because it minimizes friction during essential processes like banking and onboarding with payment providers, suppliers, and software tools.

Unusual or mismatched structures often lead to extra verification hurdles.

While the entity type itself doesn’t guarantee approval for services, it significantly reduces the likelihood of needing to answer “extra questions” during verification.

Easier To Find E-Commerce-Savvy Help Locally

Florida is popular with Amazon FBA sellers mostly because the support system is already built there.

Because so many e-commerce businesses operate from Florida, you can find accountants, bookkeepers, and operators who already understand Amazon-specific stuff, like how FBA fees show up in payouts, how reimbursements work, and how to handle inventory accounting.

That matters because Amazon finances are not “normal business finances.”

If your accountant doesn’t get Amazon, you waste time explaining basics, your books get messy, and you can end up with wrong numbers or missed deductions.

So, the advantage isn’t the Florida LLC law itself. The advantage is: it’s easier to hire people who already know the Amazon game.

Works Well For Both U.S. And International Amazon Sellers

Florida works well for both U.S. and international Amazon sellers for one simple reason: it’s a “standard” U.S. setup that most platforms and service providers handle smoothly.

For U.S. sellers who live in Florida, the benefit is practical. Your LLC is registered where you actually operate. That usually means fewer extra filings, fewer mismatches in addresses, and a cleaner trail for banking and taxes.

For international sellers, the benefit is also practical.

A Florida LLC is a common structure, so most banks, payment processors, and Amazon-related service providers already know how to review it.

This often reduces back-and-forth during onboarding, like repeated requests for documents or explanations about your business structure.

To sum it up, Florida isn’t “special.” It’s just widely understood.

And in compliance-heavy environments like banking and Amazon verification, “widely understood” usually means fewer delays and fewer avoidable issues.

When Florida Makes More Sense Than Delaware Or Wyoming Florida makes more sense than Delaware or Wyoming when you’re actually operating from Florida or planning to move there. In that situation, forming in Delaware or Wyoming often means you still have to register as a foreign LLC in Florida. As a result, you end up paying fees and filing reports in two states instead of keeping everything in one. It also tends to work better for most Amazon sellers. That’s because many sellers don’t use Delaware’s main advantage, venture capital structures and specialized business courts.  At the same time, Florida is a very standard and familiar setup. Banks, payment processors, and Amazon-related service providers usually understand Florida LLCs well, which often leads to fewer follow-up questions and a smoother onboarding process. Sign up to know more!

3 Reasons Florida Works Well For Global Sellers Using FBA First, Florida is widely recognized. Banks, service providers, and Amazon reviewers see Florida LLCs frequently, so you spend less time explaining your entity. Second, state maintenance is predictable. Florida’s ongoing compliance is straightforward, so you’re not adding extra admin on top of federal requirements. Third, it fits how the FBA actually behaves. Amazon can store inventory across multiple states, so your sales tax footprint may become multi-state anyway. Florida won’t prevent that, but it works as a clear home base while you manage nexus separately.

How Florida LLCs Are Taxed

By default, a Florida LLC is a pass-through entity. 

That means the LLC itself does not pay income tax to the state of Florida. Instead, profits “pass through” to the owner and are reported on the owner’s personal tax return.

Florida also has no personal state income tax, so if you live in Florida, you don’t pay an extra state income tax layer on those profits.

As a result, Florida is often ideal to Amazon sellers who run profit-driven, cash-flow businesses. If you later choose S-corp taxation, Florida still won’t tax your personal income, but federal tax rules still apply.

What Florida Does Not Tax (And Why Sellers Like That)

Florida does not tax your personal income either way.

Florida does not have a state income tax for individuals. This is a big advantage if you live in Florida, as your Amazon FBA profits will not be hit with an additional state tax.

Essentially, Florida eliminates one layer of taxation found in many other states. This makes Florida very attractive to Amazon sellers who need regular cash flow and profit distributions.

This benefit remains even if you later choose S-corp tax classification, as Florida still does not tax your personal income.

What The IRS Still Taxes (Federal Income Tax And Self-Employment Tax)

At the same time, federal taxes do not disappear.

No matter where your LLC is formed, your Amazon FBA income is still taxed by the Internal Revenue Service. That usually includes federal income tax and self-employment tax, unless you elect S-corp taxation and pay yourself a reasonable salary.

Florida does not replace or reduce these federal obligations. So, while Florida simplifies state-level taxes, the IRS still taxes your profit in full.

This is where many sellers get confused.

Why Amazon FBA Creates Sales Tax Complexity (Nexus Basics)

Income tax is only half the picture. Sales tax works differently.

With Amazon FBA, your inventory is stored in Amazon warehouses. Because Amazon controls inventory placement, your products can end up in multiple states without you choosing those locations.

Once inventory is stored in a state, that state may consider you to have sales tax nexus there. This can happen even if you’ve never been to that state and even if your LLC is formed in Florida.

Florida Sales Tax Is Only One Piece (Multi-State Nexus Through Amazon Warehouses)

Florida sales tax applies only to orders delivered to Florida customers.

If your Amazon FBA inventory is stored in a Florida fulfillment center, Amazon will generally collect and remit Florida sales tax for those Florida shipments under marketplace facilitator rules.

From a Florida-only lens, that part is relatively clean.

The complication starts because Amazon, not you, decides where your inventory is stored. Amazon routinely moves FBA inventory across its national warehouse network to optimize delivery speed.

The moment your inventory is physically stored in another state, that state may treat you as having a physical nexus, even if you have no employees, office, or address there.

This means your Florida LLC can trigger sales tax nexus in states like Texas, California, Illinois, or New Jersey simply because inventory sat in an Amazon warehouse there for part of the year.

Your LLC’s formation state does not prevent this. Nexus is driven by where inventory exists, not where your company is registered.

In practice, this creates a split responsibility:

• Amazon usually handles collection and remittance of sales tax in those states.

• You may still be required to register for a sales tax permit and file returns in those states, even if the return shows zero tax due because Amazon already remitted it.

The key clarity point for CEOs: Florida simplifies state income tax. It does not limit your sales tax footprint. Amazon’s warehouse network determines that footprint, and it can span multiple states regardless of where your LLC is formed.

Why Marketplace Facilitator Laws Change The Game

Marketplace facilitator laws are the reason Amazon can collect and remit sales tax for you in the first place.

In Florida, the law puts the sales tax collection duty on the “marketplace provider” (the platform that lists the product, takes the customer’s payment, and pays the seller). 

That’s why Amazon can charge the customer the right tax and send it to the state without you touching the tax money.

As a result, for many sellers who only use Amazon, the main sales tax job is no longer just collecting and sending the tax money. 

Instead, it becomes a task of administration and record-keeping. 

Here’s what these admin tasks typically include:

• Registration: Even if Amazon remits the tax, some states still expect you to register once you have nexus. Because nexus rules vary by state, what triggers registration in one state may not trigger it in another.

• Returns: Some states still require a return to be filed, even if it’s a “zero” or informational return, because they want a filing on record even when no tax is due from you.

• Resale/Exemption Proof: If you do tax-exempt B2B sales, you may need to keep exemption certificates or other proof, so you can support the exemption if there’s a question later.

Here’s a crucial point that business leaders need to understand: 

Marketplace facilitator laws don’t automatically remove your tax nexus; they just change who is responsible for sending the tax money to the state. 

This means your taxes might have been collected correctly, but you could still be non-compliant if the state required you to register or file returns.

Another overlooked problem is that your financial statements can look wrong if you don’t account for marketplace-collected tax properly. 

Amazon might show that tax was collected during the checkout process, but you never actually receive that money as revenue. 

Therefore, if your bookkeeping mistakenly includes this tax money in your gross sales, it will distort your actual revenue, profit margins, and any internal performance tests you track. This is often an issue when comparing performance between platforms like Amazon and Shopify.

The bottom line is that marketplace facilitator laws make operations easier because Amazon handles the tax remittance in many states. 

However, they increase the importance of business governance because compliance now focuses on proper registration, timely filings, and maintaining clean financial reporting trails.

How Florida Sales Tax Differs From Sales Tax Nexus Created by Amazon FBA Warehouses

Dimension	Florida Sales Tax (Florida Shipments Only)	Sales Tax Nexus Created by Amazon FBA Warehouses
What Triggers The Tax Rule	Customer delivery address is in Florida	Your inventory is physically stored in a warehouse located in another state
Who Controls The Trigger	The customer’s shipping location	Amazon’s internal inventory placement system
Role Of Your Florida LLC	LLC registered in Florida; state rules apply only to Florida deliveries	LLC registration state is irrelevant to nexus created outside Florida
Why The Obligation Exists	Florida taxes in-state deliveries	States treat stored inventory as physical presence (nexus)
Typical States Involved	Florida only	Any state where Amazon stores inventory (e.g., CA, TX, IL, NJ)
Who Collects And Remits Tax	Amazon usually collects and remits under Florida marketplace rules	Amazon often collects and remits under each state’s marketplace facilitator law
What Amazon’s Role Does NOT Remove	————	Possible seller duties like registration or filing, depending on the state
Common Seller Misunderstanding	“My LLC is in Florida, so Florida is all that matters”	“Amazon remits, so I have zero compliance responsibility”
What Founders Should Actively Monitor	That Florida sales tax is being handled correctly by Amazon	Inventory location reports and state-specific registration/filing rules
Core Takeaway	Florida sales tax is about where the order is delivered	Multi-state nexus is about where inventory physically sits

Legal & Compliance Requirements for a Florida LLC

To form a Florida LLC, you need to file Articles of Organization with the Florida Department of State, Division of Corporations. You also must appoint a registered agent with a physical Florida street address who can accept legal notices.

After formation, Florida compliance is mostly about keeping your company in “active” status.

Key Legal & Compliance Requirements:

✔️ Annual Report (Recurring)

You must file it every year between January 1 and May 1.

The fee for an LLC annual report is $138.75, and if you file after May 1, Florida adds a $400 late fee.

Keep in mind: The annual report is not a financial statement; it’s an official record update (addresses, managers, registered agent, etc.). Another important point people often miss: if you don’t file by the third Friday in September, Florida can begin administrative dissolution.

✔️ Operating Agreement (Not Required, but Highly Recommended)

While Florida law does not require an Operating Agreement to form an LLC, having one is crucial.

Without it, any disputes between owners will be resolved according to the state’s default statutory rules, which may not align with the owners’ intentions.

✔️ EIN (Federal)

An Employer Identification Number (EIN) is typically required for opening a business bank account, hiring employees, or electing certain tax classifications.

Most founders obtain it early because banks require it for account setup.

✔️ Separate Finances (Practical Liability Protection)

To maintain the legal separation and liability protection of your Florida LLC, it is crucial to keep your business and personal finances completely separate.

Mixing (“commingling”) these funds is one of the easiest ways for your liability protection to be challenged, especially in the event of a legal dispute. This financial separation is a vital compliance requirement for a Florida LLC.

✔️ Licenses and Permits (Local)

Registering your LLC with the state of Florida does not automatically satisfy local (city and county) business licensing requirements.

You may still need additional local permits depending on your specific business location and the nature of your operations.

✔️ Amazon Seller Verification Alignment

Your Florida LLC details must match what you submit in Amazon Seller Central. This includes the legal business name, registered address, registered agent details (where applicable), and ownership information.

Mismatches between records, bank documents, and Amazon verification data are a common reason for seller account delays, re-verification requests, or temporary holds.

BOI Reporting: Here’s the Update Most People Miss While many sources still state that “BOI filing is required for all LLCs from 2024,” this information is outdated. The original rollout included this requirement, but FinCEN issued an interim final rule in March 2025 that eliminated the BOI reporting requirement for U.S. companies and U.S. persons. Therefore, the critical point is this: the rule has changed. Whether your entity must file a BOI report now depends entirely on whether it meets the definition of a “reporting company” under FinCEN’s updated regulations.

Step-by-Step: How to Form a Florida LLC for Amazon FBA

If you want a smooth Florida LLC setup for Amazon, three things must match across your Florida filing, your bank account, and Amazon Seller Central:

1) the exact legal business name (spelling, “LLC” formatting, punctuation)

2) the business address you’re using for verification

3) the owner/manager details tied to your documents. 

When sellers get stuck, it’s usually because one of these three doesn’t match somewhere, not because they followed the wrong steps.

Here are the key steps involved in forming a Florida LLC for Amazon FBA: 

Choose An LLC Name And Lock It In

Start with the name. Pick one exact legal business name and stick to it everywhere. This is the name that will appear on Sunbiz, on your bank account, and inside Amazon Seller Central.

Small differences such as extra words, missing “LLC,” or punctuation, are a common reason Amazon asks for repeated verification.

Appoint A Florida Registered Agent

You need to appoint a Florida Registered Agent who has a physical address in the state. This agent is crucial because they will receive all official legal and compliance notices for your LLC.

Choosing a reliable agent is essential, as failing to receive important notices could lead to serious legal complications down the line.

File The Articles Of Organization

Filing the Articles of Organization is the formal step that legally creates your LLC. It is quite important to be precise when providing your business address and ownership information during this filing. 

These details become part of the public record and will be used for verification by institutions like banks and Amazon.

Inconsistencies or frequent, casual changes to this information are what often lead to complications and mismatches later on.

Get An EIN

The EIN serves as your LLC’s unique federal tax identification number.

You must have it for opening a business bank account, filing taxes with the IRS, and completing Amazon’s verification process.

Be sure to save the official confirmation letter from the IRS, as you will need to provide this documentation multiple times.

Related Read: How to Get an EIN as a Non-US Resident

Open A US Business Bank Account

Open your bank account only after the LLC and EIN are complete. Make sure the account name matches the LLC’s legal name exactly.

The bank statement is often used by Amazon as a verification document, so name and address consistency matter here a lot.

Any discrepancy in the name or address between your bank statement, LLC documents, and Amazon profile can lead to verification delays or failure.

Connect The LLC To Amazon Seller Central

Amazon checks whether the legal business name and street address you enter match what shows up on your LLC paperwork and proof documents.

If they don’t match exactly, your case often gets kicked to manual review. Plus, you’ll get repeat document requests, and the account can be denied or limited until the mismatch is fixed.

The easy way to avoid that is by using the same wording and formatting everywhere: no shortened names, no alternate addresses, and no “close enough.”

doola’s Tip: View the Seller Central setup as a high-stakes consistency check is crucial. Preparing all documentation with an obsessive focus on precise, literal alignment with official legal records is the best strategy for a smooth and fast entry into the Amazon marketplace.

Common Florida LLC Setup Mistakes Amazon Sellers Make  Here are the mistakes that cause real delays and rejections:  👉🏼 Using a brand name as the legal business name in Amazon, while the bank statement shows the LLC legal name (or the other way around). This is a classic mismatch trigger. 👉🏼 Changing addresses too casually across Sunbiz, banking, and Seller Central. If your Florida record says one address and your documents prove another, you’ve created a verification gap. 👉🏼 Rushing the bank account and accepting whatever formatting the bank chooses, then realizing later it doesn’t match your state filing. Fixing that can take longer than forming the LLC. 👉🏼 Not deciding early who the “official owner/manager” is on paper. If your filing shows Manager-managed but Amazon profile shows something else, you may get asked for additional documentation. 👉🏼 Treating setup as separate tasks (form LLC, then later think about Amazon). In practice, Amazon verification ties everything together, so the setup has to be built like one connected system. Want to avoid these mistakes? Set up Florida LLCs the right way with doola

Do You Need a Florida LLC If You’re an International Amazon Seller?

If you’re an international Amazon seller, you don’t need to be physically present in the U.S. to operate, but you do need a U.S. legal and financial setup that Amazon, banks, and tax authorities recognize. 

With that context, the next thing most founders ask is whether they’re allowed to form one as a non-resident.

Can Non-Residents Form A Florida LLC?

Yes. 

You don’t need U.S. citizenship, a visa, or U.S. residency to form and own a Florida LLC. You can own 100% of it. The key state requirement is appointing a registered agent with a physical Florida address.

Once you know you can form your business in Florida, the next step is figuring out what you need to actually run it. 

The first thing Amazon sellers need is to set up their business tax identity.

Getting An EIN Without An SSN

An EIN (Employer Identification Number) is your LLC’s federal tax ID. You will need it early on because Amazon and banks use it to track your business activity.

You can still get an EIN even if you don’t have an SSN (Social Security Number) or ITIN (Individual Taxpayer Identification Number).

However, it might take longer because the process for those without an SSN is usually slower than the quick online option U.S. residents use. 

Check the steps here

Once you have your EIN, the next step is to open a business bank account to handle your company’s money.

The US Bank Account Challenge  This is where international founders feel the most friction. First, banks run stricter KYC checks for non-resident owners, so they may ask for more documentation than you expect. Second, some banks have tighter policies for online businesses, so approval can depend on how clean and consistent your LLC paperwork is. And this connects directly to Amazon, because the bank statement becomes one of the strongest proof documents for verification. Learn more: Best Bank Accounts for Amazon Sellers in 2026

When a Florida LLC Might Not Be the Right Choice

A Florida LLC is likely not the best choice if:

• You already live and operate in another U.S. state. You will probably have to register your Florida LLC as a “foreign LLC” in your home state, which means extra filings and fees.

• You plan to raise venture capital or issue complex equity. Investors typically prefer the legal structures offered by a Delaware LLC.

• Your goal is to avoid federal taxes or multi-state sales tax created by Amazon FBA. Your location of formation (Florida or otherwise) does not change these federal and sales tax obligations.

How doola Helps Amazon FBA Sellers Form & Stay Compliant

With experience assisting business owners from over 175 countries in navigating the complexities of launching and managing a U.S. company, doola is well-equipped to make your Amazon FBA journey smoother and more manageable.

Here’s how we help you:

🚀 Establish Your Legal Entity

doola helps founders establish a clear, verifiable legal entity.

This includes securing a strong legal name, completing all necessary formation documents, obtaining an Employer Identification Number (EIN), and defining the ownership structure, ensuring there is no ambiguity about who controls the business.

🚀 Comprehensive Support

In addition, you receive the following core benefits with doola:

• U.S. Business Banking Support: We assist with setting up a U.S. business bank account, which is crucial for receiving Amazon payouts and managing your business finances cleanly and efficiently.

• Bookkeeping, Tax, and Compliance Support: We provide ongoing support to maintain accurate books and ensure you remain compliant with all U.S. federal and state filing requirements.

• Support Tailored for Global Founders: We offer specialized assistance from the initial setup through scaling, specifically designed for founders who manage their entire operation from outside the U.S.

Take the first step with us toward your global e-commerce success without unnecessary back-and-forth.

FAQs

Do I need a Florida LLC to sell on Amazon FBA?

No. Amazon does not require you to form a Florida LLC specifically. You can sell on Amazon FBA without an LLC.

That said, many sellers choose to form one early because it helps separate personal and business risk and creates a clearer business identity for banking, taxes, and Amazon verification.

Is Florida the best state for Amazon FBA sellers?

Florida isn’t “the best” for everyone. It works well if you live in Florida, plan to move there, or want a straightforward, widely accepted setup.

If you live in another U.S. state or plan to raise venture capital, another state may make more sense.

Florida is popular because it’s simple and predictable, not because it avoids federal taxes or Amazon rules.

How much does it cost to form and maintain a Florida LLC?

To form a Florida LLC, the state filing fee is typically around $125.

Ongoing, Florida requires an annual report each year with a fee of $138.75 if filed on time. If you miss the deadline, Florida adds a $400 late fee.

Beyond that, costs depend on registered agent services, bookkeeping, and tax support.

Do Florida LLCs pay sales tax on Amazon FBA sales?

Florida LLCs don’t pay sales tax just because they’re formed in Florida.

Sales tax depends on where your customers are and where Amazon stores your inventory.

Amazon usually collects and remits sales tax under marketplace facilitator laws, but you may still have registration or filing obligations in certain states.

Can non-US Residents open a Florida LLC for Amazon FBA?

Yes. Non-U.S. residents can form and fully own a Florida LLC. You don’t need U.S. citizenship or residency. You will need a registered agent in Florida, an EIN, and a U.S. business bank account.

Banking is often the hardest part for international sellers, but it’s manageable with the right setup.

Does Amazon require an LLC or can I sell as an individual?

Amazon allows you to sell as an individual or sole proprietor. An LLC is not mandatory.

However, selling as an individual means your personal name, tax identity, and assets are directly tied to the business. Many sellers switch to an LLC once sales become consistent or risk increases.

Can I move my existing Amazon business to a Florida LLC?

Yes. Many sellers start selling as individuals and later move the business into an LLC. This usually involves forming the LLC, opening a business bank account, and updating your details in Amazon Seller Central.

The key is making sure names, addresses, and ownership details are updated consistently to avoid verification issues.