The best company structure for an Amazon agency.

An Amazon agency's structural needs are driven by its cash flow and its core platforms. Your business receives payouts from Amazon, and often from clients directly via bank transfer or card payment. You need a reliable way to receive these funds in USD and settle them to your home country. Relying on cross-border personal platforms like Wise or Payoneer becomes difficult at scale, and using your personal name on invoices to US clients can appear unprofessional.

You also need a structure that US clients can easily work with. They will expect to pay a US entity and will want to issue a Form W-9 for their own tax records, which requires a US entity with a US Employer Identification Number (EIN). Your company structure is not just a legal wrapper; it is a core piece of your operational and financial infrastructure. It determines which payment gateways you can use, what name is on the bank account receiving funds, and how smoothly you can contract with US-based clients. The right structure solves these commercial problems first.

A single-member LLC formed in the US provides a formal business identity separate from its owner. This is the key that unlocks other infrastructure. With a US LLC and its assigned Employer Identification Number (EIN), you can apply for a US business bank account, access US-native payment processors like Stripe, and present a professional face to clients who expect to engage a US company.

However, it is crucial to understand the limits. A US LLC is not a magic wand for tax avoidance. It does not eliminate your tax obligations in your country of residence. You will almost certainly still have personal or corporate tax to pay locally on the profits you generate. It also does not make a high-risk business model low-risk in the eyes of a bank; if your agency's activities involve risky practices, the LLC will be scrutinised just as closely. Finally, while it improves the probability of securing a US bank account, it is never a guarantee. Banking access depends entirely on the financial institution's risk appetite and your business's specific profile.

For US federal tax purposes, a single-member LLC is by default a 'disregarded entity'. This means the LLC itself does not pay tax. Instead, the tax obligations flow through to its owner. If the foreign owner is not a US person, the question becomes whether their income is considered 'effectively connected' with a US trade or business (ETBUS). For many online agencies with no US office, US staff, or other dependent agents in the US, the income may not be ETBUS. In such cases, there may be no US federal income tax due.

This position depends entirely on your specific facts and must be confirmed with a qualified US tax adviser. Even if no tax is owed, there is a significant reporting requirement. A foreign-owned disregarded entity must file Form 5472 and a pro forma Form 1120 with the IRS annually to report its relationship with the foreign owner and any reportable transactions. The penalty for failing to file or filing late is substantial, starting at $25,000, so this is not an obligation to be taken lightly.

For most non-resident founders of online businesses like Amazon agencies, Wyoming and Delaware are the most common choices for forming an LLC. Both states have well-developed corporate law, are efficient to file in, and do not require the owner to be a US resident. Neither state has a state-level corporate income tax for LLCs that are not physically operating there, which is a key advantage.

Wyoming is often preferred for its lower annual fees and strong privacy protections; it does not list member or manager names on the public record. Delaware is the standard for venture-backed technology companies that intend to issue stock and raise capital, as its corporate case law is extensive. For a bootstrapped Amazon agency that does not plan to seek venture capital, Wyoming typically offers the best combination of price, privacy, and simplicity. The choice of state has little impact on your ability to open a bank account or use payment processors; your business model and ownership structure are far more important factors to a financial institution.

The primary commercial reason to form a US LLC is to access US-dollar financial infrastructure under a corporate name. Marketplaces like Amazon require a bank account to send payouts. While they may allow payouts to some non-US bank accounts or fintech services, using a US business bank account in the name of your US LLC is the most stable, long-term solution. It reduces the risk of payment holds or declines.

For direct client payments, a US bank account allows you to receive ACH and wire transfers natively. This is cheaper and faster for your US clients than sending international wires. It also allows you to connect to US-based payment processors like Stripe or Shopify Payments, which often require a US entity, US bank account, and US tax ID (EIN). These platforms can be essential for automating billing and subscriptions. Without a US LLC, you are reliant on a patchwork of less integrated, often more expensive cross-border payment solutions that may not be sustainable as your agency grows.

When a bank's compliance team assesses an Amazon agency's account application, they focus on specific risks. A primary concern is the handling of client funds. If your agency receives the full revenue from a client's Amazon sales into your own account before remitting the net amount, you are acting as a payment intermediary. This is a significantly higher-risk activity than simply receiving a service fee. Many US banking institutions, particularly fintech BaaS providers, will not support businesses that hold client funds in this manner.

Underwriters will review your website and service agreement to understand your exact model. They will look for clear descriptions of your services, transparent pricing, and professional presentation. They will verify your LLC's good standing and your identity as the owner. Be prepared to explain your client base, typical transaction volumes, and the source of funds. A clear, well-documented business model focused on service fees is much more likely to be approved than one that involves complex fund flows or holding client money.

For an Amazon agency, the choice between Wyoming, Delaware, and Florida is less about tax and more about perception. Underwriters at US financial institutions and payment processors view each state differently. A Wyoming LLC offers the lowest upfront cost and strong privacy, shielding your ownership details from public records. This is ideal for straightforward agencies managing marketing and listings without handling client funds. Delaware carries a higher annual cost but signals a mature, well-capitalised structure to partners and potential investors, which can be advantageous if you plan to seek venture funding or a strategic exit.

Florida is often considered by founders from Latin America due to cultural familiarity and time zones, but it offers minimal privacy and its nexus perception can be complex. For an agency, this can sometimes lead to more questions from compliance teams who may perceive it as a local retail business rather than a global online service. Ultimately, the state filing is a public document that forms the first impression of your business. For most non-US Amazon agency founders, Wyoming's blend of low cost, privacy, and neutrality makes it the most common and efficient choice, presenting a clean, unambiguous structure to banking partners.

Payment processors apply different scrutiny levels to foreign-owned US LLCs. Stripe is the most common choice for agencies billing clients for services. Its verification for a US LLC owned by a non-resident requires your EIN confirmation letter (CP 575 or 147C), foreign passport, and proof of a US business address via your registered agent. Stripe may place an initial reserve on your account, typically holding 10-20% of your volume for 30-90 days, until a payment history is established. High-value, one-off setup fees are more likely to trigger a review than recurring monthly retainers.

PayPal’s B2B invoicing is also an option, but its account holds are notoriously sensitive to sudden changes in transaction volume or value, a common occurrence for a growing agency. If you are managing client Amazon accounts directly, you will not be interacting with Amazon Payments yourself. However, your LLC structure and US bank account are what enable your clients to grant you the appropriate user permissions within their Seller Central, as Amazon’s systems are built around this framework. Having your documentation organised and ready is key to a smooth onboarding process with any processor.

Budgeting for your LLC involves public, third-party costs, not just advisory fees. State filing fees are a one-time cost, approximately $100 in Wyoming or $90 in Delaware. Annually, expect a state report fee ($62 in Wyoming, $300 in Delaware) and registered agent service, which typically ranges from $100 to $250 per year depending on the provider and service level. Obtaining an EIN from the IRS as a non-resident without a Social Security Number is free but takes time; current processing is between three and five weeks after the state filing is complete.

Your first payout timeline depends on this sequence. Week 1: LLC formation. Weeks 2-5: Awaiting the EIN from the IRS. Week 6: Apply for your US business bank account. Week 7: Apply for a Stripe or other payment processor account. Realistically, your first settled payment from a client could arrive eight to ten weeks after you begin. Delays most often occur during the bank's compliance review, especially if your agency handles client pass-through funds for ad spend or reimbursements, which requires clearer explanation of your business model.

The process of setting up a US LLC and opening a bank account follows a clear sequence. First is the LLC formation itself, which typically takes a few business days in a state like Wyoming. Once the LLC is formed, the next step is to apply for an Employer Identification Number (EIN) from the IRS. This can take several weeks for foreign applicants.

Only after you have both the approved LLC and the EIN can you begin applying for a business bank account. The banking application process itself can take anywhere from a few days to several weeks, depending on the institution and the complexity of your case. At Xavion, we manage this entire sequence, from state filing to EIN application and finally to preparing and positioning your banking applications. We build a complete compliance file for your business to present to financial institutions. A realistic total timeline from starting the process to having an open and funded US business bank account is typically six to eight weeks, though this can vary.