Digital Marketing Mastery

🏢 How to Register an LLC for UK Amazon Sellers (Full Guide for USA, UK & Pakistan)

Selling on Amazon UK is one of the fastest ways to start and scale an ecommerce business.
But before you launch products, open your store, or run ads, you need the right business structure — and for most sellers, that means forming an LLC (Limited Liability Company).

In this guide, you’ll learn:

What an LLC is

Why UK Amazon sellers need one

USA vs UK vs Pakistan options

How to register an LLC step-by-step

Tax implications, costs & legal tips

Common mistakes to avoid

⭐ What is an LLC?

A Limited Liability Company (LLC) is a legal business structure that protects your personal assets from business risk.

If your Amazon FBA account runs into:

Returns & refunds

Customer complaints

Lawsuits

Inventory loss
👉 Your property, savings and income stay protected.

🔥 Benefits of Starting an LLC for Amazon Sellers

1.⁠ ⁠Personal Liability Protection
Your Amazon business stays separate from your personal life.

2.⁠ ⁠Easier Taxes
LLCs offer flexible taxation — single owner, partnership, S-Corp, or default pass-through.

3.⁠ ⁠AEO & Platform Compliance
Amazon prefers business entities (over personal accounts) and may require:

Business name

EIN / UTR number

Business bank account

Proof of address

4.⁠ ⁠Better Brand Credibility
Suppliers, wholesalers and banks trust a registered company more than individual sellers.

🌍 Best LLC Options for UK Amazon Sellers
🇬🇧 Option 1: UK Ltd Company

Ideal if:

You live in the UK

You want to benefit from UK local banking & VAT rules

Includes:

Companies House registration

UTR tax number

Business bank account

Option to register for VAT once crossing threshold

🇺🇸 Option 2: USA LLC (US + International sellers)

Best for:

USA-based sellers

Pakistan/International sellers selling to Amazon UK

Digital nomads

Why people choose US LLC:

Fast registration (1–3 days)

No residency required

Global credibility

Works seamlessly with Amazon FBA + VA teams

🇵🇰 Option 3: Pakistan local entity → Still allowed

But:

Limited access to Amazon-friendly banks

Compliance can be slow

Harder to get Stripe/PayPal financing

Most Pakistan-based sellers choose U.S. LLC + UK Seller Central combo.

🧩 Step-by-Step: How to Register an LLC for Amazon UK
1️⃣ Pick a Business Name

Make sure the name:
✔ Isn’t taken
✔ Matches your brand vision
✔ Can scale across categories

2️⃣ Choose Where to Register

US LLC: Wyoming / Delaware

UK Ltd: Companies House

3️⃣ Appoint Members (Owners)

Single or multiple owners allowed.

4️⃣ Submit Registration Forms

Depending on region:

USA LLC → Secretary of State

UK Ltd → Companies House

5️⃣ Apply for Tax IDs

USA Seller: EIN (Employer Identification Number)

UK Seller: UTR Number (Unique Taxpayer Reference)

Pakistan-based seller using US LLC only requires EIN + Passport.

6️⃣ Open a Business Bank Account

Popular options:

Mercury

Relay

Wise

Payoneer

Revolut (UK)

7️⃣ Create Amazon Seller Central Account

Upload your:

Business registration

EIN/UTR

Address proof

Bank account letter

ID verification

8️⃣ Optional: VAT / Sales Tax Registration

Required if:

Revenue crosses UK VAT threshold

You store goods in UK/US warehouses

💡 Costs of Registering an LLC
Location Approx Cost Timeframe
USA LLC (Wyoming) $150–$300 1–3 days
USA LLC (Delaware) $200–$300 1–5 days
UK Ltd £12–£100 Same day
🔎 Tax Considerations for Amazon Sellers

USA LLC

Foreign sellers pay tax based on US-effectively connected income

Often zero tax if managed offshore

UK Ltd

Corporation tax applies on UK profits

VAT due once threshold hits

Pakistan Sellers

Must report income locally (FBR rules)

Always consult a tax advisor for personalized rules.

⚠️ Common Mistakes to Avoid

❌ Using personal bank accounts
❌ Ignoring sales tax/VAT obligations
❌ Mixing personal & business expenses
❌ Registering in the wrong state/country
❌ Delaying EIN application
❌ Registering without understanding Amazon compliance

🎯 Key Takeaways

An LLC is the smartest way to start legally and safely

Choose USA LLC or UK Ltd depending on your residence and banking needs

Set up banking + tax IDs before creating your Amazon Seller Central account

Stay compliant with VAT & reporting rules

Protect yourself — don't run your Amazon business as an individual