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Starting an Amazon FBA Business – License, Permit & Insurance

Do you want to know the legal requirements you need to start an amazon fba business? If YES, here is a checklist of Amazon FBA business licenses, permits & insurance.

Having provided you with a:

  1. Amazon FBA Industry Overview
  2. Market Research and Feasibility
  3. Amazon FBA Business Plan
  4. Amazon FBA Marketing Plan
  5. Amazon FBA Name ideas
  6. Amazon FBA Licenses and Permits
  7. Cost of Starting an Amazon FBA Business
  8. Amazon FBA Marketing ideas

We will consider what it takes to get operating license and permit for your amazon fba business including insurance coverage and intellectual property protection.

Starting an Amazon FBA Business – Licenses, Permits & Insurance

  • Best legal entity to use for an amazon fba business

Starting an amazon fba business is indeed a serious business so the legal entity you choose will go a long way to determine how big you want the business to grow. No doubt choosing a legal entity for a business can be a bit challenging.

When it comes to choosing a legal entity for your amazon fba business you have the option of choosing from general partnership, a limited partnership, an LLC, a “C” corporation, or an “S” corporation. It is important to clearly state that these different forms of legal structure for business has its own advantages and disadvantages; which is why you must weigh your options properly before making your choice.

These are some of the factors you should consider before choosing a legal entity for your amazon fba business; limitation of personal liability, ease of transferability, admission of new owners and investors’ expectation and of course taxes.

If you take your time to critically study the various legal entities to use for your e – commerce business, you will agree that limited liability company; an LLC is most suitable. You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or a ‘S’ corporations especially when you have the plans of going public.

Upgrading to a ‘C’ corporation or ‘S’ corporation will give you the opportunity to grow your amazon fba business so as to compete with major players in the industry; you will be able to generate capital from venture capital firms, you will enjoy separate tax structure, and you can easily transfer ownership of the company; you will enjoy flexibility in ownership and in your management structures.

Is Professional Certification Needed to Start an Amazon FBA Business?

Basically, you do not necessarily need to have any professional certification before your launch an Amazon FBA business with private label business. This is so because Amazon tries as much as possible to give people leverage on their business platform.

On the other hand, if you have plans to someday start your own independent e – commerce business / online store then you should source for relevant certifications that will aid the success of the business.

List of Legal Documents You Need to Run an Amazon FBA Business

The essence of having the necessary documentation in place before launching a business in the United States cannot be overemphasized. It is a fact that you can successfully run any business in the United States without the proper documentations.

These are some of the basic legal document that you are expected to have in place if you want to run your own Amazon FBA business with private label / e – commerce business in the United States of America;

  • Certificate of Incorporation
  • Business License
  • Business Plan
  • Non – disclosure Agreement
  • Employment Agreement (offer letters)
  • Operating Agreement for LLCs
  • Insurance Policy
  • Consulting contract documents
  • Online Terms of Use
  • Online Privacy Policy Document
  • Apostille (for those who intend operating beyond the United States of America)

Choosing the Best Insurance Policy for your Amazon FBA Business

In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance that are required by the industry you want to operate from. So it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your Amazon FBA business cum e-commerce business.

Here are some of the basic insurance covers that you should consider purchasing if you want to start your own Amazon FBA business with private label in the United States of America;

  • General insurance
  • Health insurance
  • Liability insurance
  • Workers compensation
  • Overhead expense disability insurance
  • Business owner’s policy group insurance

Getting Intellectual Property Protection / Trademark for your Amazon FBA Business

If you are considering starting your own Amazon FBA business with private label, usually you may not have any need to file for intellectual property protection / trademark. This is so because the nature of the business makes it possible for you to successful run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

But if you just want to protect your company’s logo and other documents or software that are unique to you. Then you can go ahead to file for intellectual property protection. If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO. The final approval of your trademark is subjected to the review of attorneys as required by USPTO.

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