Can I Start an E-commerce Business to Sell Products in the US from Another Country?

Yes, you can start an e-commerce business to sell products in the United States even if you live in another country. The law does not require you to live in the US to sell to US customers online. What matters is how you set the business up: the company, the way you get paid, the taxes and the shipping. This guide answers the question in plain terms and gives the steps in order. If you are in India, see the more specific guide on opening an e-commerce business in the USA from India.

Key takeaways

• You can sell to US customers from any country that is not under US sanctions.
• A US company, usually an LLC, is not always required, but it makes banking, payments and marketplace approval easier.
• You can form the company online without a US visa, a Social Security Number or a trip to the US.
• Sales tax, US income tax, customs duties and your own country's tax all need a plan.

Do I need to live in the US to sell there?

No. A person or company anywhere in the world can sell products to US customers online. There is no residency test for opening an online store or a marketplace seller account. The things that do depend on where you are are the rules on money, tax and shipping, which are covered below.

Do I need a US company?

Not by law, but in practice most sellers form one:

• Marketplaces and payment platforms often prefer, or require, a business with a US tax number.
• US banks and online business accounts deal more easily with a US company.
• Customers and suppliers trust a US business more.
• It keeps business money and personal money apart, which matters for tax.

The usual choice is an LLC. A C-corporation suits a founder who plans to raise money from US investors. See LLC vs C-Corp.

How to set up the company from abroad

1. Choose a state and a name. Any state is open to you. Compare costs on our LLC filing fees by state page.
2. Appoint a registered agent with a street address in that state. See our registered agent service.
3. File the formation document online with the state.
4. Get the EIN. A foreign owner without a Social Security Number applies with Form SS-4 by fax, mail or phone. See our EIN service.
5. Open a bank or payment account in the company's exact name. See US business bank account.

The full steps are in how to form a US LLC without visiting the US, and you can start with LLC formation for non-residents.

Choose how you will sell

• A marketplace such as Amazon, Walmart, eBay or Etsy. You get an audience and checkout, and you pay fees and follow rules.
• Your own store on Shopify or WooCommerce. You own the customer and the brand but you must find the customers.
• Dropshipping. A supplier ships for you, and you hold no stock.
• Your own product. Held in a US warehouse or shipped from your country.

Check each platform's current rules for sellers outside the US, because they change.

Getting paid

Marketplaces pay into a bank or payment account in the company's name. Match the legal name, EIN and address everywhere to avoid rejections. Moving the money to your own country follows your country's rules on foreign income and foreign exchange. Ask an accountant there before you plan transfers.

Sales tax

US sales tax is set by each state, not by the federal government. On big marketplaces, the marketplace usually collects and pays it for you in most states. On your own store, you may have to register and collect tax once your sales in a state pass its threshold. Rules and thresholds differ by state, so check each one, and see the guidance from the US Small Business Administration at sba.gov.

Tax on the business income

A foreign-owned US LLC that sells goods to US customers or holds US stock can have US-source business income, and may owe US tax and have to file a US return. A foreign-owned single-member LLC also files Form 5472 every year, even with no income. Your own country may tax the profits as well. These rules are easy to get wrong, so speak to a US tax adviser and an accountant in your own country. See US LLC tax filing.

Shipping, duties and returns

• Shipping from your country means customs duties, longer delivery and a harder returns process.
• Shipping from a US warehouse is faster for customers.
• Decide who pays duties and how returns work before you promise delivery times.
• Check the product rules in the US for food, cosmetics, supplements, electronics and children's goods.

See how to start an import-export business in the USA for the customs side.

What you cannot do

• Sell to, from or through countries and people under US sanctions.
• Sell products that are banned or restricted in the US.
• Ignore sales tax or US tax filings because you live elsewhere.

Pick products that suit a cross-border seller

• Small and light. Shipping and duty cost less, and returns are easier to handle.
• Not heavily regulated. Food, cosmetics, supplements, medical items, electronics and children's products carry extra rules. The US Food and Drug Administration (fda.gov) and the Consumer Product Safety Commission (cpsc.gov) publish the rules for their products.
• Healthy margin after fees. Count the marketplace fee, payment fee, shipping, duty, returns and the cost of ads before you decide a price.
• A product you can source reliably, with a supplier who can show quality and give you the paperwork the US side may ask for.

Protect your brand name

If you plan to build a brand, check that the name is not already used by someone else in the US, and consider registering the trademark. The United States Patent and Trademark Office explains the process at uspto.gov. Marketplaces also have brand-registry programs that need a registered or pending trademark. Using a business name that is too close to an existing brand can get your listings removed.

Put the legal basics on your store

• A privacy policy that says what customer data you collect and why.
• Terms of sale and a clear returns and refund policy.
• Accurate product descriptions and prices. The Federal Trade Commission (ftc.gov) publishes guidance on advertising and online selling.
• The company's name and contact details on the site.

Our own pages are an example of the basics: a privacy policy and terms in the footer. Write your own for your store, and ask a lawyer to review them if you sell regulated products.

Marketing and customer support

US customers expect fast replies, clear delivery dates and easy returns. Use a support email that you check daily and a returns address in the US, if you can, to keep refunds quick. Start small: one marketplace or one store, one or two products, and a small ad budget to test. Add more only after you know your real cost per sale.

A 90-day plan for a cross-border seller

1. Days 1-14: pick the model and the product, check the product rules, and ask an accountant about money and tax in your own country.
2. Days 10-30: form the LLC and get the EIN. See LLC formation for non-residents and our EIN service.
3. Days 25-50: open the bank or payment account and apply to the marketplace or set up your store.
4. Days 40-70: order a small test batch, set up shipping and returns, and write your policies.
5. Days 60-90: list the product, run a small test, and put the yearly filings in your calendar. See annual reports.

Times differ by state, platform and product, so treat this as a guide and not a promise.

Costs to plan for

• Company: the state formation fee, a registered agent, and a service fee if someone files for you.
• Each year: the state annual fee or report, the registered agent renewal and the IRS filing for a foreign-owned LLC.
• Selling: marketplace fees, payment fees, shipping, duty, packaging, returns and ads.
• Tax: sales tax collected for the states, and any income tax on the profit in the US and in your country.

See what a US LLC costs each year and the state-by-state fee table.

Useful official sources

• IRS: employer identification numbers
• IRS: Form 5472
• US Small Business Administration
• US Customs and Border Protection
• International Trade Administration

More guides on starting from abroad

• Register an e-commerce company in the USA from India
• Can a foreigner own a US LLC?
• How to pay yourself from a US LLC as a non-resident
• Mistakes non-residents and foreigners make when registering a US LLC
• Company formation in the USA

Frequently asked questions

Can I sell on Amazon in the US from another country?

Yes, many sellers do. Amazon checks your identity and business documents, so have your company papers, bank account and ID ready. Check Amazon's current requirements for your country.

Do I need a US address?

The LLC needs a registered agent with a street address in its state. Your warehouse or office can be anywhere. See do you need a US address to form an LLC.

Do I need a Social Security Number?

No. A foreign owner can get the company's EIN without one.

How much does it cost to start?

The state fee for the company, a registered agent, and your platform and shipping costs. Then yearly costs for the state report and the IRS filing. See what a US LLC costs each year.

Can I sell to the US without a company?

Sometimes, for a small first test, but platforms and banks increasingly prefer a US business, and mixing personal and business money complicates tax.

How long does it take to start?

The company takes days to weeks. The bank account and marketplace approval often take longer, so start them early.

Do I need a trademark to sell in the US?

Not to start, but a trademark protects your brand and is needed for some marketplace brand programs. Check the name first on the USPTO site.

Can I use my personal bank account?

You can for a small test, but it mixes personal and business money. A business account in the company's name is cleaner and often needed by platforms.

Who handles returns?

You do, unless the marketplace's fulfilment service does it. Plan the return address and the refund policy before you launch.

Ready to start?

We form the LLC, arrange the registered agent and EIN and keep up the yearly filings: register an LLC in the USA as a non-resident. This is general information, not legal, tax or financial advice.