The Problem: Tax Withholding Without an EIN
When you set up your Amazon Seller Central account, you must complete a tax interview. Without a US tax ID, Amazon is legally required to withhold a percentage of your sales. This isn't optional.
- Without EIN: Amazon withholds 24-30% of your gross sales
- With EIN: You complete Form W-8BEN-E and avoid withholding
- The withholding applies to ALL sales, not just profit
- Getting a refund requires filing US tax returns — complex and expensive
Completing the Amazon Tax Interview
Once you have your EIN, here's exactly how to complete the tax interview in Seller Central:
- Go to Settings → Account Info → Tax Information
- Select 'Business' as your tax classification
- Choose 'Foreign Entity' (not US person)
- Enter your EIN when prompted for tax ID
- Complete Form W-8BEN-E (Amazon walks you through it)
- Claim treaty benefits if your country has a US tax treaty
- Submit — Amazon verifies within 24-48 hours
US Bank Account for Payouts
Amazon pays sellers in USD to US bank accounts. Without one, you're stuck with Amazon's currency conversion (poor rates) or third-party services. With an EIN, you can open a real US business bank account.
- Mercury: Best for non-US residents, 100% online application, no minimum balance
- Relay: Also non-US friendly, integrates with accounting software
- Wise Business: Not a US bank but offers US account details, easiest to open
- Traditional banks (Chase, Bank of America): Possible but typically require US visit
Timeline: LLC to First Amazon Sale
Here's a realistic timeline for getting set up:
- Form US LLC: 1-7 days depending on state
- Get EIN: 1-15 days depending on service tier
- Open US bank account: 1-5 days (Mercury/Relay)
- Complete Amazon tax interview: Same day once you have EIN
- Total: As fast as 3 days with Priority EIN, or 3-4 weeks with Basic