How to Form an LLC: Amazon Sellers LLC in California (2026)

Amazon sellers face unique risks including product liability lawsuits from defective items, intellectual property infringement claims, and account suspensions. An LLC separates your personal finances from your e-commerce business, and Amazon itself recommends sellers operate as a registered business entity rather than as sole proprietors. In California, amazon sellers face additional considerations including state-specific franchise taxes, license requirements, and compliance obligations that make getting your LLC structure right from the start even more important.

• Choosing and reserving your LLC name
• Filing Articles of Organization with the Secretary of State
• Appointing a registered agent
• Drafting an operating agreement
• Obtaining an EIN from the IRS
• Opening a dedicated business bank account
• Obtaining required business licenses and permits

Note: Additional $800 annual franchise tax for LLCs and corporations

• Product liability lawsuits from defective or unsafe items
• Trademark or patent infringement claims from competitors
• Customer injury claims from products sold on the platform
• Account suspension leaving you liable for unfulfilled orders