The Corporate Transparency Act (CTA), enacted in 2020, is shaking up the landscape of business ownership in the US, with significant implications for Amazon sellers. This blog post unpacks the Act's impact on both domestic and international Amazon sellers, particularly those who beneficially own LLCs, and how AMZ Sellers Attorney® can help navigate this new legal terrain.
What is the CTA?
The CTA aims to combat money laundering and other illicit activities by increasing transparency in corporate ownership. It requires reporting companies like LLCs to disclose information about their "beneficial owners." These are individuals with substantial control or who own/control at least 25% of the LLC's ownership interests.
How does the CTA affect Amazon sellers?
Many Amazon sellers operate through US-based LLCs, particularly for tax and liability reasons. If your LLC falls under the CTA's purview, you'll need to:
What about international sellers with US LLCs?
The CTA applies regardless of your residency or citizenship. If you beneficially own a US LLC used for Amazon selling, you're subject to the reporting requirements. This means gathering information and filing the BOI report, even if you reside outside the US.
Potential complications for non-US residents:
How AMZ Sellers Attorney® Can Help:
AMZ Sellers Attorney® 's supervising attorney specializes in representing Amazon sellers. They have a deep understanding of the CTA and its implications for Amazon businesses, and they can assist you in the following ways:
Recommendations for international sellers:
The Corporate Transparency Act has arrived, bringing new requirements for LLC transparency. Amazon sellers, especially those residing outside the US, need to carefully navigate the Act's implications to ensure compliance and avoid potential complications. Remember, professional guidance from AMZ Sellers Attorney® can be invaluable in ensuring a smooth and informed journey through this evolving legal landscape.
Disclaimer: This is not legal or tax advice. Please consult with qualified professionals for specific guidance related to your situation.