Register an E-commerce Company in the USA from India: Type, State and Next Steps

Registering an e-commerce company in the USA from India means forming a US company, usually an LLC, that will own your online store or marketplace account. This guide covers the company side only: which type to choose, which state, what an e-commerce company needs after it is formed, and how it differs from a company for services. For the business side of selling, see how to open an e-commerce business in the USA from India.

Key takeaways

• An LLC suits most e-commerce sellers from India. A C-corporation suits a seller who plans to raise investor money.
• The company is formed online. You do not need to visit the US.
• An e-commerce company usually needs an EIN, a bank or payment account and sales tax registrations.
• Keep the company's name and details identical on every platform.

LLC or C-corporation for an e-commerce company?

An LLC is the common choice: simple, flexible and quick to form. A Delaware C-corporation suits a founder who expects to raise money from US investors, because investors prefer it. An S-corporation is generally not open to a non-resident owner. Read LLC vs C-Corp before you decide.

Which state?

You can form in any state, and you need a registered agent in it. Common choices are Delaware, Wyoming and New Mexico. If you hold stock in a state, or have staff there, you may also have to register to do business in that state, which can mean two sets of fees. Compare the costs on our LLC filing fees by state page.

Steps to register the company

1. Choose the name. It should match the brand customers see. Check it is available in the state.
2. Appoint a registered agent with a street address in the state. See our registered agent service.
3. File the formation document online with the state.
4. Get the EIN. A foreign owner applies with Form SS-4 by fax, mail or phone. See our EIN service.
5. Write the operating agreement.
6. Open the bank or payment account. See US business bank account.

What an e-commerce company needs after it is formed

• A sales tax registration in any state where you must collect tax, if the marketplace does not do it for you.
• A resale certificate, if you buy stock from US suppliers without paying sales tax on it.
• Product and licence checks for regulated goods.
• A business address for customers and returns, which can be a warehouse or fulfilment centre.
• The yearly filings: the state annual report and, for a foreign-owned single-member LLC, Form 5472. See annual reports and US LLC tax filing.

Marketplace and payment account approval

Amazon, Shopify payments, Stripe and similar platforms check the company's name, EIN, address and the owner's identity, and reject mismatches. Form the company and get the EIN first, then apply. Approval is decided by each platform, and its requirements for owners outside the US change from time to time, so check them before you apply.

India-side points

Money sent from India to fund the company and money paid back to you follow India's foreign exchange rules, and a resident generally reports foreign companies and assets in the Indian return. Ask a chartered accountant before you move money. The Reserve Bank of India publishes the rules at rbi.org.in.

A setup checklist

1. Decide the selling model and the products, and check the product rules.
2. Choose LLC or C-corporation, and the state.
3. Pick the company name and a second choice.
4. Arrange the registered agent and the formation filing.
5. Apply for the EIN once the state approves the company.
6. Write the operating agreement and keep it with the company papers.
7. Open the bank or payment account in the exact company name.
8. Apply to the marketplace or payment platform.
9. Register for sales tax where you must collect it.
10. Put the state annual report and the IRS filing dates in your calendar.

What it costs to start and to keep

At the start you pay the state formation fee and, if a company files for you, a service fee. Then every year there is the registered agent, the state's annual fee or report, and the yearly IRS filing for a foreign-owned LLC. A seller also pays marketplace fees, payment fees, shipping and, where it applies, sales tax collected for the states. Add these up before you promise margins to yourself. See what a US LLC costs each year and how to compare quotes for the questions to ask any provider.

Selling from India without a US company

Some sellers start on a marketplace from India without a company. It can work for a first test, but marketplaces and payment platforms increasingly prefer a US business entity, and mixing personal and business money makes tax harder. If you plan to grow, forming the company early is cleaner.

Frequently asked questions

How long does it take to register the company?

State approval takes from a day to a few weeks, and the EIN longer for a foreign owner. See how to form a US LLC without visiting the US.

Can I register a US company without a US partner?

Yes. You can be the only owner, and no US citizen or resident needs to be involved. See can a foreigner own a US LLC.

Do I need a separate company for each store?

Not necessarily. One company can run several stores. Some sellers use separate companies to separate risk. Ask an adviser if your products carry risk.

What does it cost?

The state fee, a registered agent and the yearly filings. See what a US LLC costs each year.

Can the same company sell in India?

A US company can sell abroad, but selling into India has its own rules on taxes and registrations. Ask a chartered accountant.

Ready to register?

We form the LLC, the registered agent and the EIN: register a company in the USA from India. This is general information, not legal, tax or financial advice.