Best Country for Amazon FBA Sellers (2026)
Wyoming LLC + Mercury Bank is the default answer for FBA Sellers targeting US Amazon โ you need a US entity, US EIN, and US bank account. For UK Amazon sellers, UK Ltd works perfectly. For EU selle...

What Amazon FBA actually requires
Amazon's seller onboarding requires: 1. A valid legal entity (company or sole trader) 2. A bank account in the country you're selling in (or a compatible bank account) 3. A tax identification number (EIN for US, VAT number for EU/UK) 4. Government-issued ID verification (passport)
Amazon does NOT require you to be incorporated in the country you're selling in โ but it does require a bank account that Amazon can deposit to.
---
By marketplace
- Amazon US (.com):
- Best structure: Wyoming LLC
- Why: Mercury Bank provides a US bank account for Amazon US deposits. The EIN (obtained free from IRS) lets you register as a US seller. Wyoming LLC is the cheapest way to establish a US entity.
- Alternative: Delaware LLC (slightly more expensive but equally effective)
- Tax note: A foreign-owned US LLC with no US-source income pays 0% federal tax; file Form 5472 annually ($25K penalty if missed)
- Amazon UK (.co.uk):
- Best structure: UK Ltd
- Why: Wise Business provides a UK sort code and account number; Stripe UK and Amazon UK both work with this. 24-hour setup, ยฃ12 fee.
- VAT: Mandatory registration for Amazon UK sellers above ยฃ90,000 turnover; Amazon collects and remits for some sales
- Amazon EU (DE, FR, IT, ES, NL):
- Best structure: Estonia Oร, Irish Ltd, or any EU company
- Why: You need an EU VAT number; the EU VAT OSS (One Stop Shop) allows you to register in one EU country and cover all EU marketplaces with a single VAT return
- Practical: Estonian Oร registered for EU VAT via OSS covers all five Amazon EU marketplaces with one quarterly return
---
Cost comparison for FBA structures
| Marketplace | Best Entity | Year 1 Cost | Tax Rate |
|---|---|---|---|
| Amazon US | Wyoming LLC | USD 825โ1,525 | 0% on foreign-owned LLC income |
| Amazon UK | UK Ltd | ยฃ700โ1,700 | 19โ25% CT |
| Amazon EU | Estonia Oร | โฌ1,070โ2,530 | 0% retained / 20% distributed |
---
Common mistake: One entity for all marketplaces
Many sellers try to use a single entity for all Amazon marketplaces. The practical issue: each marketplace has separate banking requirements. Amazon US needs a US bank; Amazon UK needs a GBP account; Amazon EU needs an EU IBAN.
Pragmatic solution for scaling sellers: Wyoming LLC (US) + UK Ltd (UK/EU) + Wise Business for EUR receipts. Three entities sounds complex but the combined cost is ~USD 3,500โ5,000/year โ easily absorbed by any seller doing >USD 100K revenue.
---
---
Need help choosing the right jurisdiction?
Use our free Country Picker tool or get a personalised consultation.
This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.