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Comparison

Best Country for Amazon FBA Sellers (2026)

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

March 2026 3 min read
Best Country for Amazon FBA Sellers (2026)

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 — but it does require a bank account that Amazon can deposit to.

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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, £12 fee.
  • VAT: Mandatory registration for Amazon UK sellers above £90,000 turnover; Amazon collects and remits for some sales
  • Amazon EU (DE, FR, IT, ES, NL):
  • Best structure: Estonia OÜ, 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 OÜ registered for EU VAT via OSS covers all five Amazon EU marketplaces with one quarterly return

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Cost comparison for FBA structures

MarketplaceBest EntityYear 1 CostTax Rate
Amazon USWyoming LLCUSD 825–1,5250% on foreign-owned LLC income
Amazon UKUK Ltd£700–1,70019–25% CT
Amazon EUEstonia OÜ€1,070–2,5300% retained / 20% distributed

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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 3,500–5,000/year — easily absorbed by any seller doing >USD 100K revenue.

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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.