Key Things You Must Know to Register as an Individual Seller in the U.S.

Key Things You Must Know Before Registering as an Individual Seller in the U.S.

With the rapid growth of global e-commerce, an increasing number of individual sellers are setting their sights on overseas markets-especially the United States, a country with strong consumer demand and a mature e-commerce ecosystem. According to data from Statista, the U.S. e-commerce market is projected to reach $850 billion by 2025. It has become a growing trend for individual sellers to enter the U.S. market through platforms such as Amazon, eBay, and Etsy.

However, registering as an individual seller in the U.S. is not a simple process. It involves multiple critical areas such as taxation, legal structure, and banking. A lack of understanding or preparation can easily lead to compliance risks.

First, clarify your legal status for selling in the U.S.

U.S. federal and state governments regulate individual sellers differently. In most cases, individuals must register a legal business entity before engaging in commercial activities. Common business structures include Sole Proprietorship and Limited Liability Company LLC.

A Sole Proprietorship is the simplest structure, but it does not separate personal and business assets. In the event of legal disputes, personal assets may be at risk. An LLC, on the other hand, offers liability protection by separating personal and business assets, making it a popular choice among cross-border sellers. To register an LLC, you need to file documents such as the Articles of Organization with your state and pay the corresponding registration fees.

Second, understand the U.S. tax system.

The U.S. operates a dual taxation system-federal and state taxes. Individual sellers must determine whether they need an Employer Identification Number EIN, issued by the Internal Revenue Service IRS to identify business entities for tax purposes.

Even if you are a non-U.S. resident and not forming a company, you may still need an EIN to meet platform or tax compliance requirements. For example, Amazon requires sellers to provide either an EIN or an Individual Taxpayer Identification Number ITIN to complete tax-related information.

Sales tax in the U.S. is complex and varies by state. While some platforms like Amazon automatically collect and remit sales tax on behalf of sellers, you still need to understand the rules and ensure timely and accurate tax reporting.

Third, choose the right bank account and payment methods.

After registering as an individual seller in the U.S., it is advisable to open a U.S. local bank account to facilitate fund settlements and tax reporting. Although international services such as Payoneer and Wise offer U.S. dollar accounts, a local U.S. bank account is more effective for platform integration, tax compliance, and daily operations.

Opening a U.S. bank account typically requires documents such as identification, an EIN, or company registration papers. Some banks may also require in-person visits or the use of proxy services to complete the process.

Fourth, understand platform policies and choose the right e-commerce platform.

Currently, Amazon remains the largest e-commerce platform in the U.S., but Etsy, eBay, and Shopify also attract many individual sellers. Each platform has different seller requirements, fee structures, and logistics support.

Take Amazon as an example the platform requires sellers to provide real identification, valid contact information, and bank details, and to comply with its strict selling policies. In recent years, Amazon has strengthened seller verification. In 2025, many accounts were suspended due to fake registrations and incomplete tax information. Therefore, ensure that all submitted information is genuine and complete during registration.

Fifth, logistics and warehousing are also crucial.

U.S. consumers expect fast delivery. Using local warehousing or Amazon’s Fulfillment by Amazon FBA service can significantly improve customer experience. FBA not only handles storage, packing, and delivery but also increases product visibility and conversion rates on the platform.

However, FBA requires sending inventory to Amazon’s warehouses in advance, involving international logistics, customs clearance, and inventory management-challenges that require strong financial and operational capabilities from individual sellers.

In conclusion, registering as an individual seller in the U.S. is a comprehensive process involving legal, tax, banking, platform, and logistics considerations. As cross-border e-commerce continues to evolve, both platforms and regulators are raising the bar for seller compliance. Only by preparing in advance, understanding relevant laws and regulations, and choosing the right business model can individual sellers succeed and achieve long-term, stable growth in the U.S. market.