Forming a US LLC for E-Commerce: The 2026 Guide

"Do I need a US company?" is the first question every cross-border seller asks. Short answer: not always — but in many cases it makes the business meaningfully easier. The long answer runs through what you sell, on which channel, at what scale.

We write this from our own process, not from a template: Revoba LLC is a Delaware company; we live the US banking, annual compliance and Amazon-LLC connection ourselves. Below: the decision criteria, step-by-step setup, a realistic cost table, and the after-formation obligations nobody puts in the ads.

Do you actually need an LLC?

You can sell cross-border without one: open Amazon and Etsy accounts with your home-country company and route US withholding through the W-8BEN(-E) and your country's tax treaty. An LLC can wait if you haven't validated the product yet, you're Etsy-only at small volume, or revenue doesn't justify the fixed annual cost.

An LLC becomes a clear advantage when you need:

• US payment rails: Mercury-style banking and Stripe require a US entity — the cleanest path to charging US cards on your own Shopify store.
• Smoother Amazon operations: verification, certain category approvals and wholesale supplier relationships.
• Credibility and liability separation: trust with US customers/suppliers, and a wall between company debts and personal assets.
• Scale and permanence: if the US is going to be your main market, building the structure right beats migrating later.

Which state: Delaware or Wyoming?

Ninety percent of sellers shortlist two states:

• Wyoming: low formation and annual costs (~$60 annual report), no state income tax, strong privacy. Usually the most economical choice for a small-to-mid e-commerce seller.
• Delaware: the most established corporate law; the standard if you envision investors, partners or a future C-Corp conversion. The trade-off: $300/year franchise tax.
• Florida / Texas etc.: if you have physical presence (warehouse, partner, operations) in a state, evaluate it — physical nexus may require registration there anyway.

Practical summary: Wyoming for a lean e-commerce operation; Delaware for an investment/partnership vision. We formed Revoba LLC in Delaware because we wanted a multi-partner, long-horizon structure — your answer may differ.

1. Pick and check the name

Search the state registry (Secretary of State); the name must end in "LLC". If a trademark is on your roadmap, check the USPTO database for conflicts now, and grab the domain and social handles at the same time.

2. Appoint a registered agent

Every LLC must have a registered agent in its state to receive official mail. For non-residents this is a ~$100–150/year subscription. Pick a provider with a reliable notification system — they're also your address for state correspondence.

3. File the formation document

Certificate of Formation (Delaware) / Articles of Organization (Wyoming); state fees run roughly $100–110. Processing ranges from hours to weeks depending on state and speed option. Agent firms bundle this filing — you generally don't need a lawyer. Then draft an Operating Agreement even as a single member: banks and payment providers ask for it.

4. Get the EIN

The EIN is your company's IRS identity — required for banking, Amazon and payment rails. Without an SSN you apply via Form SS-4 by fax/mail, which can take weeks; service firms speed it up. You do not need an ITIN to get an EIN — a common myth. An ITIN only enters the picture if you personally owe a US tax filing.

5. Open banking and payments

• Mercury (and similar fintech banks): the de-facto standard for remotely opened, e-commerce-friendly US accounts. A real website and a clear business description improve approval odds.
• Wise Business: flexible multi-currency companion for transfers home.
• Stripe: for charging cards on your own site — unlocked by the LLC + EIN + US bank trio.

Design the money flow up front: marketplaces → US account → expenses paid from the US → remaining profit transferred home with clean records.

6. Connect Amazon/Etsy to the LLC

Starting fresh? Open the account directly under the LLC. Migrating an existing account triggers re-verification — every document (company name, address, bank) must match exactly. Schedule the switch in a quiet season, not mid-Q4.

A realistic cost table

• Formation (state fee): ~$100–110
• Registered agent: ~$100–150/year
• EIN: free from the IRS (service fee if outsourced)
• Annual state obligation: Wyoming ~$60 report / Delaware $300 franchise tax
• Federal filing (Form 5472 + pro-forma 1120): mandatory for foreign-owned single-member LLCs; accountant fees typically $300–800/year
• BOI report (FinCEN): ownership disclosure at formation, updated on changes

Total: ~$500–1,000 in year one, ~$500–1,200/year after (accounting included). The "$20 LLC" ads skip most of these lines — budget accordingly.

After formation: the obligations nobody mentions

Forming an LLC is easy; keeping it alive takes discipline. Three things people skip, and pay for:

• Form 5472 + pro-forma 1120: the foreign-owned LLC's annual information return. Penalties start at $25,000 — read that twice.
• State annual report / franchise tax: miss it and the company falls out of good standing, which ripples into bank and Amazon verifications.
• Sales tax: marketplace-facilitator laws shift most Amazon sales tax onto Amazon, but watch state economic-nexus thresholds as your own site grows.

And don't forget home: LLC profit is typically declarable where you're tax-resident. Treaties prevent double taxation — not declaration. Build this with your accountant.

Five common mistakes

• Taking on fixed costs before validating the product ("company first" syndrome)
• Buying the cheapest formation package and never hearing about Form 5472
• Inconsistent company/bank/Amazon details (verification rejections)
• Mixing personal and company spending (pierces the liability shield)
• Confusing ITIN with EIN and stalling the process on the wrong document

FAQ

How long does it take? Filing: days. EIN without SSN: weeks. Bank approval: days. Realistic end-to-end: 3–6 weeks.

Can it all be done without visiting the US? Yes — formation, EIN, Mercury and the Amazon connection are all remote. That's how we and thousands of sellers run it.

Formed in the wrong state — can I move it? Yes ("domestication"), but it's costly and bureaucratic. Choosing right the first time is far cheaper.

The right order, at the right time

An LLC is a tool, not a goal: formed at the right moment it accelerates payments, credibility and scale; formed too early it just burns fixed cost. For most sellers the right order is: validate the product → see first sales on the channel → then build the structure.

Company-setup consulting is part of our Brand Launch package; to talk through which structure fits you, a cross-border consulting call is free. For the full Amazon picture, see our guide to selling on Amazon.