If you're a business owner and you sell on Amazon, then you know it's important to understand your legal obligations. That's why it makes sense to set up your own limited company.
Choosing your company formation
LTD is the most popular company formation for Amazon sellers. It has many advantages over other business structures.
If you are thinking about setting up an Amazon company formation, then this post will guide you through the process. We will look at how to register an EIN, form a limited company and start making money.
Company formation for Amazon sellers
There are a number of advantages to forming a company, including:
- protection from personal liability
- tax savings
- increased credibility in the eyes of customers and suppliers
- simplified accounting processes
When you form a limited company, your name is replaced with that of your business on official documents and correspondence. This is particularly useful if you have been operating as an individual trader, as it means that your personal assets will not be at risk if there are any legal disputes or fraud allegations made against the business.
What are the advantages of forming a company?
There are a number of advantages to forming a company, including:
- Protection against personal liability. If you're trading as a sole trader, if your business cannot pay its debts and is wound up, you will be responsible for the debts personally. In some cases this can lead to bankruptcy or even prison. By forming a limited company, you are no longer liable for any of the company's debts after it has been wound up in liquidation.
- Tax benefits. As a self-employed person working for yourself (and not paying staff), your income is liable for tax as an individual rather than being taxed as part of an organisation such as a limited company…
Is your company registered? Great, take the next step with wamo
Now that you have your company ready to operate, it is time for you to get a business account that fits your needs. To get started, download wamo business from Google Play or the App Store. If you have any questions, just ask! support@wamo.io.