Do I Need A Business License To Sell On Amazon?

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Amazon is the leading online retailer of health and beauty products, generating over $150 billion in revenue. When it comes to selling on Amazon, there’s one big question that needs answering: do you need a business license?

The “do you need a business license to sell online” is a question that has been asked many times. This article will answer the question and give you some tips to help you decide if it’s worth it for your business.

It’s only logical that if you’re considering about beginning an online company selling things on sites like Amazon, you’d want to make every effort to guarantee that all of your business operations are totally legal and above board.

When you start looking into such things, though, things get a bit more tricky. There’s also VAT registration and business registration. Then there are federal, state, and local business licenses. Not to mention the distinction between sales permits and licenses.

That is why we have written this essay. In this post, we’ll look at the advantages of having a business license and when it’s necessary, as well as whether or not you need one to sell on Amazon.

Then we’ll look at the qualifications for becoming an Amazon seller before diving into How to Make Money on Amazon. After that, we’ll come to a quick decision.

If you want to skip forward, go ahead and do so.

The Advantages Of Having A Business License


There are several important The Advantages Of Having A Business License, and we’re just going to run through them briefly…

Legal Representation

Most localities need companies to be licensed, and if you don’t have one, you may be breaking the law in certain areas.


Customers may be certain that you are a legitimate company and not a con artist if you have a business license.

To Obtain Funding

Having a business license is often required to qualify for financing from certain sources.

Tax Observance

Business licenses are necessary since they enable you to simply keep up with local taxes, keeping you out of legal and financial difficulties.

Advantages of a Wholesale License

You may buy products at wholesale pricing if you get a company license.

When Do You Need A Business License?


Federal Permits And Licenses

Whether or not your firm need a federal license or permission is determined by whether or not your operations are governed by a federal agency. 

By clicking on this link to the SBA’s website on applying for licenses and permits, you may see whether your company operations are governed by a federal agency. 

If it is regulated, you may inquire about business licensing information and prices with the granting agency.

State Permits And Licenses

Your state, county, or local licenses and permits will be determined by your business activity and location. 

States have a larger variety of regulations than the federal government. You’ll need to look into the laws in your local state, county, and city. To find out the permissions and licenses you need, go to your state’s website.

Is A Business License Required To Sell Online?


As you may be aware, there are a number of online marketplaces where individuals may sell their wares without needing a sales licence or a company license. eBay, Facebook, Craigslist, and Etsy are all good instances of this.

And, given that this seems to be a widespread trend, it raises the issue of whether business licenses are truly required to sell things on Amazon.

Is A Business License Required To Sell On Amazon?

And, because we’re especially looking at selling on Amazon, it’s only natural to look into what Amazon has to say about the subject…

Now, it turns out that there is no mention of business licenses on Amazon’s web page outlining how to start selling on Amazon.

There might be a number of reasons for this not being addressed here…

To sell on Amazon, a company does not always need to have a license. It is sometimes and sometimes not. So, let me elaborate…

We mentioned this earlier, but it bears repeating here. There are several forms of licenses and permits that are required for different business activities. These include Federal Permits And Licenses and state, county, and city licenses and permits.

To put it another way, whether you need a business license to sell on Amazon is totally dependent on whether the things you’ll be selling are federally controlled.

If you’re unclear if your items are controlled by the federal government, see the SBA’s website on obtaining licenses and permits. 

You should also verify whether the sale of these items is regulated in your state, county, or city.

What Are the Requirements to Become an Amazon Seller?


As previously stated, business licenses are not included on Amazon’s web page outlining how to start selling on Amazon.

That isn’t to suggest it doesn’t have any specific restrictions for sellers. You’ll need the following items to establish an Amazon seller account and sell on Amazon:

  • A valid passport or national identification card
  • An Amazon consumer account or a business email address
  • Details of the company’s registration, including the VAT number if appropriate
  • A bank account for sales revenues
  • Credit card that may be charged
  • A contact number

As a result, some company setup and documentation is required, and you can’t immediately start selling on Amazon as a business if you don’t have one.

That doesn’t rule out the possibility of selling as a single owner using a personal account rather than a professional one.

However, we’ll be focusing on professional Amazon seller accounts for the sake of this post. If you sell more than 35 things each month on Amazon, you’ll need a professional account.

What Should I Do Before Creating A Professional Amazon Seller Account?


Assuming you already have a working phone number and a valid national ID, you’ll just need to do the following:

  • An Amazon consumer account or a business email address
  • Details of the company’s registration, including the VAT number if appropriate
  • A bank account for sales revenues
  • Credit card that may be charged

This necessitates the creation of a DBA, or “Doing Business As” name. Every state handles this differently. To register, contact your local government department.

When it comes to opening a business bank account, you’ll need a Federal Tax ID, often known as an EIN. It is completely free to apply. You may also apply for a company credit card after you’ve established your business bank account.

While we’re on the topic of taxes, your state may require you to get a sales tax permit.

Then all you have to do in terms of paperwork is create your company email account. 

How to Make Money on Amazon

This link will take you to an excellent beginners tutorial on selling on Amazon put together by Amazon. This should be sufficient to convey all you need to get started. It’s a fantastic resource that is quite comprehensive and covers everything you could need to know.

Wrap Up

So, the answer to “Is A Business License Required To Sell On Amazon?” is that it depends on what you are selling and how much you are selling.

Unfortunately, this page can only go so far in clarifying when a business license is necessary and when it is not. You’ll have to do your own study to see whether any particular federal or state licenses or permissions are required.

Regardless, there are a few things you must do in terms of tax and VAT. The good news is that this is a reasonably simple issue to resolve, and you could be selling on Amazon in no time.


“What do I need to sell on Amazon?” is a question that many sellers ask. The answer is, you need a business license to sell on Amazon. This article will cover the basics of what you need to know about selling on Amazon. Reference: what do i need to sell on amazon.

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