USA compliance for Amazon sellers

I searched official U.S. federal agencies, Amazon Seller Central guidance, state tax authorities, and leading tax/compliance firms to assemble a concise, actionable compliance briefing for U.S. business owners and LLC founders selling on Amazon.

Below is a practical summary and checklist of federal and state requirements, product-safety/regulatory items, Amazon-specific documentation and FBA considerations, state sales-tax obligations and nexus issues, BOI/Corporate Transparency Act status, and recommended tools and next steps tailored for US Amazon sellers.

Executive summary (high level) - Federal/business formation: Form the LLC in your chosen state, obtain an EIN from the IRS, maintain registered-agent and state filings (annual/biannual reports) and basic licenses.

Keep formal records and separate business bank accounts. - BOI / Corporate Transparency Act (FinCEN): As of FinCEN Alert (Mar 26, 2025) the agency removed BOI reporting requirements for U.S. companies and U.S. persons—stay current on FinCEN updates because this area has changed; foreign reporting obligations may differ. - Sales tax & marketplace facilitator laws: Major marketplaces (Amazon) generally collect & remit sales tax for marketplace transactions under state marketplace facilitator laws—but sellers can still have filing/registration responsibilities where they have economic or physical nexus (inventory in FBA, direct sales off-marketplace, or exceeding state thresholds).

Economic nexus and marketplace rules vary by state (California notable for a $500,000 combined-sales measure; many other states use $100,000 or $200,000 or $100k/200 transactions standards). Always confirm the current threshold and rules for each state where you sell or store inventory. - Product-specific regulation & safety: Many product categories need federal compliance and documentation: CPSC rules for children’s products (third-party testing + Children’s Product Certificate/CPC), FCC for electronics, FDA for foods/cosmetics/supplements, EPA for pesticides, TSCA for chemical reporting, and state requirements such as California Proposition 65 warnings and labeling. - Amazon-specific compliance: Amazon requires compliance with all applicable laws and may request product documentation (test reports, CPC/GCC, labeling photos, COA, invoices, letters of authorization).

Amazon can gate categories and suspend listings for missing or insufficient documentation. Be prepared to use approved testing labs and maintain high-quality documentation; Amazon publishes suspended-lab lists and may require pre-approval for certain categories. - FBA & nexus: Storing inventory in an Amazon fulfillment center can create physical nexus in the state(s) where inventory is located—this can trigger registration and filing obligations even if Amazon collects tax for marketplace sales.

Map your FBA inventory locations and confirm state filing requirements. - Intellectual property & advertising: Protect trademarks (Brand Registry), avoid trademark/copyright infringement, follow FTC advertising rules and state consumer protection laws. - Recordkeeping & audits: Keep meticulous records (invoices, test reports, shipping, returns, tax filings, Amazon communications) for at least 3–7 years depending on state/federal guidance.

Prepare for potential audits by states or by Amazon. Actionable checklist (practical immediate steps)

Executive summary (high level)

- BOI / Corporate Transparency Act (FinCEN): As of FinCEN Alert (Mar 26, 2025) the agency removed BOI reporting requirements for U.S. companies and U.S. persons—stay current on FinCEN updates because this area has changed; foreign reporting obligations may differ. - Sales tax & marketplace facilitator laws: Major marketplaces (Amazon) generally collect & remit sales tax for marketplace transactions under state marketplace facilitator laws—but sellers can still have filing/registration responsibilities where they have economic or physical nexus (inventory in FBA, direct sales off-marketplace, or exceeding state thresholds).

- Recordkeeping & audits: Keep meticulous records (invoices, test reports, shipping, returns, tax filings, Amazon communications) for at least 3–7 years depending on state/federal guidance. Prepare for potential audits by states or by Amazon.

Actionable checklist (practical immediate steps)

Federal/business formation: Form the LLC in your chosen state, obtain an EIN from the IRS, maintain registered-agent and state filings (annual/biannual reports) and basic licenses. Keep formal records and separate business bank accounts.
Amazon-specific compliance: Amazon requires compliance with all applicable laws and may request product documentation (test reports, CPC/GCC, labeling photos, COA, invoices, letters of authorization). Amazon can gate categories and suspend listings for missing or insufficient documentation. Be prepared to use approved testing labs and maintain high-quality documentation; Amazon publishes suspended-lab lists and may require pre-approval for certain categories.
FBA & nexus: Storing inventory in an Amazon fulfillment center can create physical nexus in the state(s) where inventory is located—this can trigger registration and filing obligations even if Amazon collects tax for marketplace sales. Map your FBA inventory locations and confirm state filing requirements.
Intellectual property & advertising: Protect trademarks (Brand Registry), avoid trademark/copyright infringement, follow FTC advertising rules and state consumer protection laws.

Business formation & basic compliance - Form/maintain your LLC (file annual reports; use a registered agent). Confirm state filing deadlines and fees. Keep operating agreement and capital records. Open a business bank account. (State SBoS / Secretary of State sites.) - Apply for EIN (IRS). Confirm federal tax classifications and estimated tax obligations with a CPA.

BOI / Corporate Transparency Act - Check FinCEN guidance and FAQ to confirm whether your company must file BOI. (FinCEN issued an alert removing reporting requirements for U.S. companies on Mar 26, 2025—monitor for future changes.)

Sales tax, nexus, and registrations - Identify nexus triggers

inventory storage (FBA), employees/contractors, physical presence, trade shows, economic nexus thresholds (sales/transactions). Map your FBA inventory locations. - Confirm whether Amazon collects sales tax for each state (marketplace facilitator). If you make direct sales outside Amazon or have inventory, register for sales/use tax permits where required, and file returns even if Amazon collects tax for marketplace sales in that state (some states still require returns or reporting). Use authoritative state DOR pages and state-by-state guides. - Automate tax calculation & filings using services (Avalara, TaxJar, Stripe Tax, Taxually, Numeral) or work with a CPA/tax-filer.

Product compliance & safety documentation - For children’s products

obtain third-party testing and a Children’s Product Certificate (CPC) before sale and retain test reports and supplier documentation. Use CPSC guidance to classify children’s products. - For electronics: confirm FCC certification and safety testing; for batteries/chargers check UL/ASTM as required by Amazon. - For cosmetics/supplements/food: confirm FDA labeling, ingredient, and (where applicable) GMP and COA documentation for supplements. Amazon has category-specific documentation requirements. - For products sold to California: run Prop 65 exposure/toxicant checks; add Prop 65 warnings when required and maintain supplier test data/COAs. - Maintain supplier invoices, COAs, test reports, and be ready to provide documentation to Amazon on request. 5) Amazon procedures & documentation - Enroll in Brand Registry where appropriate; follow Amazon’s category gating and product compliance pages. Review Amazon’s suspended-lab list before submitting documentation. Keep supplier invoices (B2B), letters of authorization, test reports, and safety certificates accessible. - Monitor Amazon policy updates and Seller Central notices for category gating and program changes.

FBA-specific compliance - Track where Amazon places your inventory (Inventory Placement report). Confirm states where inventory is stored and evaluate physical nexus risk; register/filing may be required even when Amazon collects the tax. - If you de-register shipments or use multi-channel fulfillment, reconcile tax handling across channels.

Tax filing & recordkeeping - File federal & state income tax returns, estimated taxes (if applicable), payroll taxes for employees, and any state-specific business taxes/fees. Maintain detailed records of sales, tax collected, and remitted. - Keep all product testing documents, lab reports, CPC/GCCs, supplier invoices, and Amazon communications for audits and disputes.

Insurance and recalls - Maintain product liability insurance and consider recall-insurance coverage. Build SOPs for testing, documentation, incident response, and recall management. State-specific notes & where to confirm (priority links) - California (sales tax/marketplace & registration)

CDTFA Marketplace Facilitator Act guidance — marketplace facilitators collect tax for facilitated sales; CA economic nexus note and $500,000 combined-sales rule referenced in CDTFA guidance. Register or obtain seller’s permit via CDTFA Online Services if you have direct sales or economic nexus: https://cdtfa.ca.gov/industry/MPFAct.htm and https://cdtfa.ca.gov/services/registration.htm - New York: register for sales tax (Certificate of Authority) and confirm nexus thresholds and marketplace rules via NY Dept. of Taxation and Finance: https://www.tax.ny.gov/bus/st/register.htm - Texas: apply for sales tax permit via Texas Comptroller eSystems: https://comptroller.texas.gov/taxes/permit/ - For state-by-state marketplace/facilitator and economic nexus rules: Avalara state-by-state marketplace facilitator guide and Sales Tax Institute economic nexus state guide provide updated charts of thresholds and rules (good single references to review each state): https://www.avalara.com/us/en/learn/guides/state-by-state-guide-to-marketplace-facilitator-laws.html and https://www.salestaxinstitute.com/resources/economic-nexus-state-guide - FBA nexus and practical guidance: merchant tax guidance & overviews (Stripe/TaxCloud/Tax firms) — map inventory locations and consult state DOR guidance if uncertain. Federal product safety & agency guidance (authoritative references) - CPSC — Children’s products: classification, third-party testing requirements, and Children’s Product Certificate (CPC): https://www.cpsc.gov/Business--Manufacturing/Business-Education/Childrens-Products - FinCEN / BOI (Corporate Transparency Act) — current guidance and alerts about BOI reporting: https://www.fincen.gov/boi - Amazon product compliance & product-safety help pages (Seller Central) stating that products must comply with all applicable laws and that Amazon may require documentation: https://sellercentral.amazon.com/help/hub/reference/external/GXMGGPL6LC4CVXHT?locale=en-US Practical tools & vendors (recommended) - Sales tax automation & registration: Avalara, TaxJar, Stripe Tax, Numeral - FBA/inventory mapping & tax: Tax consultants with FBA experience, specialized tools that map fulfillment center placements - Product safety & testing labs: Use CPSC-accepted third-party labs for CPCs; avoid labs on Amazon’s suspended list - Registered agent & formation: Northwest, Harbor Compliance, or local state-registered-agent providers - Compliance/legal: specialized Amazon attorneys and consultants for category approvals (e.g., supplements, children's products) Penalties & enforcement trends - States have been aggressive about collecting lost sales-tax revenue post-Wayfair; marketplace facilitator laws shift collection to marketplaces but enforcement and audit activity continue—exposure remains for sellers with multi-channel sales or inventory-based nexus. - Amazon enforcement has tightened (gating, listing removal, suspensions) and Amazon may request compliance documents months or years after listing. Next steps I recommend for a U.S. Amazon seller / LLC founder (ordered)

Confirm entity formation, EIN, registered agent, and required state filings with your Secretary of State.

Map FBA inventory locations (Inventory Placement report) and check nexus in those states.

Review your product categories for federal/state regulatory triggers (CPSC, FDA, FCC, Prop 65) and order testing/certificates where applicable.

Register for sales/use tax accounts in any state where you have nexus or direct sales; automate tax calculation and filing with a reputable vendor.

Assemble a compliance file per ASIN containing supplier invoices, COAs, test reports, CPC/GCC, and label photos; keep backups and quick access to respond to Amazon requests.

Consult a CPA experienced with e-commerce and a compliance attorney for high-risk categories (supplements, children’s products, electronics) and for state-registration strategy. — End of summary — If you want, I can now

- produce a one-page compliance checklist tailored to your specific product categories (e.g., children’s toys, cosmetics, electronics, supplements) and your FBA inventory footprint; or - create a prioritized step-by-step calendar for registrations, testing, and filings based on the states where your Amazon sales and inventory exist.