Amazon FBA Sellers: Wyoming vs Delaware LLC in 2026

As a non-US Amazon FBA seller, your primary sales tax obligation in 2026 stems from where your inventory is stored. Amazon's fulfillment centers create a physical nexus. This means you will likely need to register for sales tax in multiple US states, regardless of where your LLC is formed.

The state where your LLC is registered does not automatically trigger sales tax nexus. Focus your nexus strategy on Amazon's inventory placement reports. Economic nexus thresholds also apply once your sales volume or transaction count in a specific state exceeds certain limits, typically $100,000 or 200 transactions.

Wyoming offers a compelling package for non-US FBA sellers in 2026. Its annual report fee is only $60 at present, making it one of the most affordable states for maintaining an LLC. Wyoming also maintains strong privacy provisions, not requiring owner names to be listed on public records.

Wyoming does not impose a state income tax or franchise tax on LLCs. This keeps your state-level financial obligations minimal, a significant advantage for FBA businesses with potentially fluctuating profits. Its business-friendly environment and straightforward compliance process simplify operations for international founders.

Delaware is renowned for its well-established corporate law and court system, the Court of Chancery. While this offers a degree of legal predictability, it is less critical for most standard FBA operations. Its primary advantage lies in its investor-friendly reputation, which can be beneficial if you plan to seek venture capital or sell your FBA business in the future.

However, Delaware charges an annual Franchise Tax of $300 for LLCs. This is significantly higher than Wyoming's annual fee. For FBA businesses focused on immediate profitability and lower overheads, this added cost can be a drawback without offering direct operational benefits for selling on Amazon.

Let's compare the direct costs for an FBA LLC. Wyoming's annual maintenance cost is typically $60 plus registered agent fees, which average $100-$150 per year. So, expect around $160-$210 annually.

Delaware, in contrast, charges a $300 annual Franchise Tax plus registered agent fees. This brings the annual cost to approximately $400-$450. For an FBA business, these recurring costs impact your bottom line, especially in the early stages when profits may be tighter.

When forming, initial filing fees are comparable, around $100-$150 in both states. The long-term difference in annual fees makes Wyoming a more cost-effective choice for many non-US FBA sellers.

Regardless of whether you choose Wyoming or Delaware, the process for obtaining an EIN (Employer Identification Number) remains the same for non-US residents. You will apply using Form SS-4, typically by fax or mail, and can often use a third-party service to expedite this. Bastion Formations can assist with this key step.

Opening a US business bank account remotely is also feasible from either state. Neo-banks such as Mercury or Relay Financial cater specifically to non-US founders. They do not require a physical US address or an in-person visit. You will need your EIN and LLC formation documents.

As a non-US FBA seller with a US LLC, your federal income tax status will likely be a disregarded entity (Single-Member LLC, by default). This means you generally will not pay US federal income tax if your business does not have a 'Permanent Establishment' (physical presence) in the US and if you do not have 'Effectively Connected Income' (ECI).

Selling tangible personal property, like FBA products, from outside the US to US customers typically does not create ECI, provided you solely use Amazon's FBA service and do not maintain your own US office or employees. You will still need to file Form 5472 and Form 1120 with the IRS annually for informational purposes, even if zero tax is due.