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Limited Liability Partnership (LLP) in United Kingdom — Amazon FBA & E-Commerce Formation Guide

For non-US residents, a US LLC (e.g., Wyoming or Delaware) is highly popular for Amazon FBA because it provides easy access to US payment gateways (Stripe, Mercury) and Amazon US, often with 0% US corporate tax if structured correctly. If selling primarily in Europe, a UK LTD or Estonian OÜ simplifies VAT registration and OSS compliance.

Last verified: June 13, 2026

Corporate Tax

0.0%

State Tax

0.0%

Formation Cost

$134

Annual Fee

$67

Forming a Limited Liability Partnership (LLP) in United Kingdom as a Amazon FBA & E-Commerce means a total tax burden of 0.0% and an official formation cost of $134. There is no minimum capital requirement. Standard formation takes 1-2 business days, or Same day expedited. No local director is required; the process can be managed remotely. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.

First-year total cost

$284

Ongoing (per year)

$667

Detailed cost calculator →

Why Limited Liability Partnership (LLP) for Amazon FBA & E-Commerce?

A business model where you sell physical products on Amazon's marketplace, utilizing their Fulfillment by Amazon (FBA) network. Choosing the right jurisdiction is critical for managing inventory taxes, VAT/Sales Tax nexus, and accessing global payment gateways.

Ideal for

  • US LLC (Wyoming/Delaware) for the US market
  • UK LTD for the European market
  • Estonian OÜ for digital nomads
  • UAE Free Zone for tax-free scaling

Challenges to watch

  • Sales tax and VAT compliance across multiple states/countries
  • Strict Amazon seller account verification processes
  • Product liability risks requiring corporate shields
  • Managing multi-currency cash flows and high conversion fees

Key decision criteria

  • Does the jurisdiction support easy Amazon Seller Central registration?
  • Can you easily open a business bank account compatible with Amazon disbursements?
  • What are the VAT or Sales Tax nexus implications for where your inventory is stored?
  • Do you need product liability insurance, and is it available for your entity type?

Limited Liability Partnership (LLP) formation requirements

Minimum capital

None

Standard timeline

1-2 business days

Expedited timeline

Same day

Local director

Not required

Registered office

Virtual office allowed

Notarization

Not required

No UK resident member is required, but the LLP must have at least two 'designated members' who assume legal responsibility.

See the full guide for all documents and requirements →

Estimated breakdown (based on avg. $150,000 revenue)

Gross Revenue$150,000
Corporate Tax-$0
Formation Cost-$134
Annual Fee-$67
Net Profit$149,799

Simulate with your own revenue →

VAT / Sales Tax

Standard rate 20%. Registration threshold: 90,000 GBP. Non-UK businesses supplying digital services to UK consumers must register for UK VAT regardless of the threshold (no threshold applies).

Banking & payments for Amazon FBA & E-Commerce

Opening a business bank account in the UK can be challenging for non-resident founders due to strict anti-money laundering (AML) regulations. Traditional high-street banks typically require a UK resident director and an in-person visit. However, digital platforms like Wise, Revolut Business, and Tide offer remote account opening options for UK LLPs, provided all members pass identity and compliance checks.

Supported payment gateways

StripePayPalGoCardlessSquarePaddleAdyen

Remote-friendly accounts

  • Wise

    Excellent for multi-currency accounts and international transfers. Highly accessible for non-resident LLP members.

  • Revolut Business

    Offers robust digital banking features, corporate cards, and API integrations. Requires thorough compliance checks for non-residents.

  • Tide

    A popular UK-based digital business account. While primarily for UK residents, they support companies with foreign directors under certain conditions.

  • Payoneer

    Ideal for e-commerce and digital service businesses needing local receiving accounts in GBP, USD, and EUR.

United Kingdom incentives & advantages

Freeport and Investment Zone Tax Reliefs

Relief from employer National Insurance contributions, business rates relief, and enhanced capital allowances.

Limited Liability Partnership (LLP) formation steps

1

Choose a unique name: Ensure the name ends with 'Limited Liability Partnership' or 'LLP' and is not already registered at Companies House.

2

Appoint designated members: Identify at least two designated members who will take legal responsibility for the LLP's compliance.

3

Set up a registered office: Obtain a physical address in the UK (England/Wales, Scotland, or Northern Ireland) to serve as the official registered office.

4

Draft an LLP Agreement: Create a private internal agreement detailing profit sharing, responsibilities, and dispute resolution (not filed publicly).

5

Identify PSCs: Determine the Persons with Significant Control (those holding more than 25% of voting rights or capital) for the public register.

6

Submit application (Form LL IN01): File the incorporation documents and pay the £100 fee to Companies House digitally or via a formation agent.

7

Register for taxes: Register the LLP with HMRC for Self Assessment and, if applicable, VAT and PAYE.

Amazon FBA & E-Commerce FAQ

Can I open a US Amazon FBA account as a non-US resident?

Yes. Forming a US LLC allows you to get an EIN and open a US business bank account, which makes the Amazon Seller Central verification process much smoother and avoids high currency conversion fees.

Do I need to pay US taxes if I sell on Amazon US?

If you are a non-US resident with a single-member LLC and no physical presence (ETBUS) in the US, you may not owe US federal income tax. However, you must still collect and remit Sales Tax in states where you have economic or physical nexus (like storing inventory in an Amazon warehouse).

Which is better for Amazon Europe: UK LTD or US LLC?

A UK LTD is generally better for Amazon Europe as it simplifies obtaining a UK/EU VAT number and EORI number, which are mandatory for importing and storing goods in European fulfillment centers.

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