Do You Need Sales Tax Permits for Every State When Selling on Amazon FBA with a Wyoming LLC?

Hello! If you’ve just set up your Wyoming LLC and created your Amazon FBA Seller account, you’re probably excited to start selling in the USA. But then you hear about sales tax and wonder:

“Do I need a sales tax permit for every U.S. state if customers from all over the country can buy my products?”

Don’t worry. I’ll explain everything in clear, beginner-friendly English — from one entrepreneur to another — so you can focus on growing your business without getting confused by U.S. tax laws.

What’s the Deal with Sales Tax and Amazon FBA?

When you sell through Amazon FBA, Amazon stores your products in their warehouses (also called fulfillment centers or FCs) across various U.S. states. While Amazon handles shipping and customer service, you are responsible for managing sales tax.

Sales tax is a fee collected from the customer and submitted to the state government. But here’s the key point:

👉 You only need to collect sales tax in states where you have a sales tax nexus.

What is a Nexus?

“Nexus” means a business connection with a state that requires you to collect sales tax there. For Amazon FBA sellers, nexus usually happens in two ways:

1. Inventory Storage: If Amazon stores your products in a warehouse in a state (like California, Texas, or New Jersey), you automatically have a nexus in that state.
2. LLC Registration: Since your LLC is formed in Wyoming, you may have a nexus there too — even if Amazon doesn’t store anything in Wyoming.

So if Amazon is storing your products in, say, five states, you only need to get permits for those five states — not all 50.

Do You Need Permits for Every State?

No, you do not need sales tax permits for every U.S. state.

You only need permits for the states where:

• Your inventory is physically stored, and/or
• You have a registered LLC (such as in Wyoming)

For example, if Amazon stores your products in California, Texas, and New Jersey, get permits for those states.

If a customer orders from Florida and you have no nexus there, you don’t need a permit or collect sales tax.

How to Find Where You Have Nexus

Login to your Amazon Seller Central account and go to:

• Tax Settings, then
• Inventory Storage Report or Tax Nexus Report

This will show where your products are being stored. Those states are where you need to register for sales tax permits.

You may also have a nexus in Wyoming because of your LLC, but since Amazon doesn't store inventory there, sales tax is only required if you sell to customers in Wyoming.

Steps to Manage Sales Tax Compliance

1. Check Nexus States

• See where your inventory is stored. Most common states: California, Texas, Pennsylvania, New Jersey, and Nevada.

2. Get Sales Tax Permits

• Apply online through each state’s Department of Revenue.
• Most permits are free or cost ₹0–₹4,000 (around $0–$50).

3. Collect Sales Tax

• Use Amazon’s Tax Collection Service to automatically collect tax from customers.
• Or, use third-party tools like TaxJar or Avalara to handle collection and reports.

4. File Tax Returns

• File sales tax returns monthly, quarterly, or yearly (depends on the state).
• Even if you made no sales, you must file a “zero return.”

Special Situations

• No-Sales-Tax States: Delaware, Montana, Oregon, New Hampshire, and Alaska don’t require sales tax.
• Economic Nexus: If your sales exceed a certain threshold (e.g., $100,000 or 200+ orders), some states require you to collect sales tax even if you don’t have inventory there.
• Non-US Sellers: Even if you're running your business from India or elsewhere, the rules remain the same — you must register and comply in nexus states.

Pro Tips to Save Time and Money

• Don’t apply for permits in all 50 states — only where you have nexus.
• Consider hiring a tax consultant or CPA to help with setup and filing.
• Use Amazon’s Inventory Placement Service to control where your stock goes and reduce the number of nexus states.
• Monitor your inventory and sales reports regularly to stay compliant.

Why a Wyoming LLC Still Makes Sense

Wyoming is popular for U.S. LLCs because:

• No state income tax
• Low annual fees (around $50–$60)
• Business-friendly rules
• Good privacy protections for owners

Even if Wyoming creates a small nexus, it's manageable — and Wyoming’s sales tax rate is low (just 4%).

Final Thoughts

In summary, you do not need sales tax permits for every U.S. state.

Focus only on the states where Amazon stores your inventory or where your business is registered (like Wyoming). Handle registration, collect tax, and file returns accordingly. Tools like TaxJar or Amazon’s tax services can make the process easier. And if you’re unsure, speak to a tax professional.

Starting your FBA journey with the right knowledge can save you a lot of trouble later. All the best for your business success! 🚀