Creating a seller account using a limited company set up on a virtual office address
Hi all,
I can't seem to find too much information about this, so I thought I will ask the question myself. I am potentially looking into starting to sell on Amazon and prior to that, ideally setting up a limited company. However, due to privacy reasons, I don't want to register that company on my own address and I want to use the services of a virtual office.
I found someone else having issues as Amazon would ask for utility bills of the address where the LTD is registered. However, those virtual address services don't provide that. After browsing around Amazon's FAQ, I could find the only utility bill or other similar address-associated document that is required is from the primary contact person's address (e.g., when confirming their residential address, and not any business information).
Would love to hear from someone who knows more about this! I can of course always start as an individual seller, but looking at the bigger picture, I would benefit more if I registered with a limited company right away.
Thanks in advance!
Creating a seller account using a limited company set up on a virtual office address
Hi all,
I can't seem to find too much information about this, so I thought I will ask the question myself. I am potentially looking into starting to sell on Amazon and prior to that, ideally setting up a limited company. However, due to privacy reasons, I don't want to register that company on my own address and I want to use the services of a virtual office.
I found someone else having issues as Amazon would ask for utility bills of the address where the LTD is registered. However, those virtual address services don't provide that. After browsing around Amazon's FAQ, I could find the only utility bill or other similar address-associated document that is required is from the primary contact person's address (e.g., when confirming their residential address, and not any business information).
Would love to hear from someone who knows more about this! I can of course always start as an individual seller, but looking at the bigger picture, I would benefit more if I registered with a limited company right away.
Thanks in advance!
14 respuestas
Seller_ZJhFeE3tNKzfh
Theres no issue with doing this setup. However, on setup, amazon will require beneficial owner data and their residential address.
This is all part of their KYC checks (ie anti money laundering)
You'll need to provide proof of ID of the beneficial owner and proof of residential address (in the form of a utlity bill dated within I think the last 90 days)
Seller_ZVAz3d5lZuGid
" I can of course always start as an individual seller,"
When you say individual seller, I assume you mean sole-trader ? , and not the individual seller account, which is only for selling off one's own persoanl secondhand items. You still need to have a BUSINESS seller account on Amazon, as either sole-trader, ltd, partnership etc.
As you are posting on this seller forum then you have obviously already registered for a seller account - which type of account did you choose ? (the legal entity), and I am not meaning the selling PLAN (professional or individual) - many newcomers get confused by this.
Make sure you know all that is involved in having a ltd company before going down that route straight away.
Seller_tRuvBEHDedp4q
Can I ask have you looked into what is involved in setting up a Ltd company as opposed to acting as a sole trader?
There are disadvantages and advantages in both options but for probably most people starting as a sole trader is often better, especially if this is a new business venture.
And TBH, I would not worry too much about privacy issues. Even if you used a virtual address for general correspondence, you would still need an actual address listed with Amazon to accept returns so your address is never going to be private. Anyone who makes a return will be given your actual address unless you go fully FBA (which for any new seller is not something I would recommend until your have proved any product you intend selling has a good market).
Ive been trading as a Sole Trader for approx 20 years and have never had any problems with privacy issues.
PS - Nice name. We could be business twins :-)
Seller_oqSLxDDX1lRMW
Hi and thanks for the comment!
So, before deciding to venturing into this, I've read and watched what we can call "guides", though let's face it, no one would freely give you the "key" to success. Anyway, to my understanding, the 2 main things to consider starting right away as an LTD were:
- It would be hard to make the transition and change to an LTD if you start as a sole trader (on Amazon anyway)
- You would be considered a lot more professional when having a company - not only by customers, but also by business, wholesalers, etc.
I understand my address is still being exposed, but not as much. I think what I am mainly considering is the professional aspect. Don't get me wrong, I don't want to overcomplicate things, but on the other hand, I want to have done some planning prior to starting.
I'm still deciding, just making sure I've made the best possible decision, objectively speaking of course.
Seller_tRuvBEHDedp4q
In all my dealings with suppliers I have never once been asked if I am a LTD company or not.
A supplier may ask if I am VAT registered (I am as becoming VAT registered is based on turnover and nothing to do with being either a LTD company or Sole Trader. Being VAT registered will give suppliers some sense you are making money, but I would not recommend it straight away unless you are selling lots of zero rated goods)
You will create a far more professional image is you register a website domain and get an email address using it (rather than a gmail one) and maybe even create a website. Some suppliers I find will ONLY trade with you if you have a selling website. Others will not trade with you at all if you tell them you sell on Amazon only. Customers wont really care about you being LTD - they will assume you are just by having a good email address and website.
There is a lot of extra bookwork in having a LTD Company.
My best advice is not to watch so called online 'guides' but to get yourself a good accountant used to people doing online selling. They will guide you as whether best being Sole Trader, Ltd, VAT etc and what you can claim/offset for tax etc. Also, what records you need to keep etc.
The only part I cannot answer is transitioning your account later on Amazon from a ST to LTD as I have never done it or had the need to do it. I 'believe' it is possible though.
Seller_oqSLxDDX1lRMW
Hi!
Thanks for commenting again! A lot of useful information, for sure.
I wasn't looking to get VAT registered right away indeed.
As for a website, this is something further down the line and I realise a domain is much more professional than a Gmail email. However, an actual ecommerce website is a bit out of budget if I also want to operate on Amazon (or at least based on the research I've done and subscriptions you pay for an ecommerce site).
I may actually really need to look into some advice from an accountant. It may cost as much or maybe less than paying an annual fee for a virtual address.
I am familiar with self assessment and how that is done, but I am sure it's much more different when an LTD is involved and very likely, an accountant must be in order for making sure there are no issues.
Seller_tRuvBEHDedp4q
They are not that expensive. Just register a domain for now so you can at least get a professional email. You can get this for approx £2.50 a month.
Create a static webpage that describes what you sell and directs people to your Amazon items to buy
Yes an ecommerce site is more expensive - but again not prohibitive. There are a lot to choose from. You can get a hosting server for a woocommerce site for approx £15 a month. The main stumbling block is finding someone who can administer the site. Luckily I came from that background so it was not that difficult for me. If you have any experience then it should not be too difficult for you either. But certainly register domain and email for now at least.
