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Commonly Asked Questions about Individual seller Business Forms

There isnt a best business type for Amazon sellers, but your research should point you in the direction of the best business type for your needs. Most of the time, we recommend an LLC for Amazon third-party sellers, but you can also choose to operate as a sole proprietor or register as an S Corp or C Corp.
Sole Proprietorship This is a business run by one individual for their own benefit. It is the simplest form of business organization.
An Amazon seller business type is simply the legal structure of the business. You can be a sole proprietor or sole trader, but you may also choose a partnership, limited liability company (LLC), or a corporation.
Form 4797 is a tax form distributed by the Internal Revenue Service (IRS). Form 4797 is used to report gains made from the sale or exchange of business property, including property used to generate rental income, and property used for industrial, agricultural, or extractive resources.
Sole Proprietorship This is a business run by one individual for their own benefit. It is the simplest form of business organization. Proprietorships have no existence apart from the owners.
Choose the best structure for your business Bottom line: If you want to test out how selling online will work for you, stick with being a sole proprietor; if you are serious about selling on Amazon and growing your business, forming an LLC will help protect you.
The Amazon Individual Seller account is designed for those who want to sell on Amazon infrequently and on a small scale, with no monthly fee but instead pay per-item selling fees. Individual sellers can create listings, but they may not have access to advanced selling features or tools.
Sole proprietorship, or sole trader This business structure means its just you, the owner thats selling on Amazon. This is a business run by a single person. This business type is easy to set up but youre liable for everything.