wrong legal entity
I opened an amazon account recently, we are currently not registered anywhere as a business or a sole trader. We do in fact sell for a profit. Does this mean that we have to be a sole trader or a LTD company in order to carry on selling?
wrong legal entity
I opened an amazon account recently, we are currently not registered anywhere as a business or a sole trader. We do in fact sell for a profit. Does this mean that we have to be a sole trader or a LTD company in order to carry on selling?
4 replies
Seller_k2X0L9mVRT0pW
Yes it does. You can be either sole trader, partnership or a Ltd Company but you must be registered with HMRC
Seller_KlbXZHzQGSDZv
1. you will need to register with hmrc as a sole trader (if your turnover is < 85k then dont need to worry about VAT.
2 You will need to Ask Amazon to open your legalentity to change it. Once done you will probably need to go through verification again.
3. Ensure all stuff you buy to sell for a profit comes from a reputable wholesaler with correct invoices not from a retail shop
4 Befre going much further suggest you take a look at seller university on here to ensure that you want to go down this path. Selling on Aazon is not a breeze and there are many pitfalls but its the best footfall in the world if you get it right.
Seller_ZVAz3d5lZuGid
To add to above - if you go down the Ltd route make sure you fully understand the implications. Personally would suggest you start off as sole-trader - if business booms then can reconsider.
Your first move is to register as self-employed with HMRC and wait to receive your UTR, which you will need to change the legal entity of your Amazon account to BUSINESS.
Sarah_Amzn
Hello @Seller_8JwnvJAJSTvR0,
following up on what other sellers shared, the "Individual" legal entity is only if you don´t sell for profit.
Please find below a short description of different legal entities:
-Individual: Select this option if you do not intend to sell on Amazon commercially or professionally. This option allows you to sell personal items that you no longer want or need, for example, old DVDs or books.
- International Sole Proprietor: This legal entity is applicable for any commercial individuals who sell for profit. A sole proprietorship is usually registered with local authorities. There is no legal distinction between the owner and the business.
- UK Sole Proprietor: This legal entity applies exclusively to UK sellers and is for any commercial individual who sells for profit. A UK sole proprietorship is registered with the HM Revenue and Customs (HMRC). There is no legal distinction between the owner and the business.
- State-owned business: This is a business that is either wholly or partially owned and operated by a government.
- Publicly-listed business: This is a business with shares listed on a stock exchange for public trading.
- Privately-owned business: These entities, such as limited companies or PARTNERSHIPS, are businesses controlled and operated by private individuals.
- Privately-owned business, such as SARL, SAS, SASU, EURL: These are businesses that are controlled and operated by private individuals.
- Charity: This is an incorporated or non-incorporated tax-exempt body.
Regards,
Sarah.
