Here’s the situation: I opened a company in Kentucky, USA, and then registered an Amazon account.
I know the company needs to undergo an annual audit, but can anyone offer advice on tax-related issues?
With a new company and a new account, how should I file taxes if I generate sales in the future?
With a Kentucky company and a newly registered Amazon seller account, your tax obligations will generally involve federal, state, and potentially sales tax compliance, depending on activity and structure. At the federal level, you will file an annual return with the Internal Revenue Service based on whether the company is an LLC taxed as a disregarded entity, partnership, or corporation, and even if there are no sales you should still file a zero or informational return to remain compliant.
At the state level, Kentucky requires annual filings and, if you have sales or nexus, income or franchise-related filings with the Kentucky Department of Revenue, while sales tax registration is only necessary once you actually begin selling and have taxable transactions or inventory stored in-state.
Amazon will collect and remit sales tax in most states under marketplace facilitator laws, but you are still responsible for registering, filing periodic sales tax returns, and reporting those collected amounts correctly.
Practically, you should obtain an EIN, open a US business bank account, keep clean bookkeeping from day one, file annual federal and Kentucky returns even if dormant, and engage a US CPA familiar with Amazon sellers to set up the correct tax classification and ensure compliance once revenue starts flowing.
If you sell with Amazon FBA, sales tax can get messy fast. Because Amazon may store your inventory in states you never choose.
That alone can create sales tax responsibility. And even if Amazon collects tax for Amazon orders, that does not always mean you’re fully covered.
Here’s the simple version:
Nexus = a state connection.
If you have that connection, that state may expect sales tax action from you.
For FBA sellers, that usually happens in 2 ways:
Your inventory sits in a state because Amazon placed it there.
Your sales in a state pass that state’s limit.
A lot of sellers think:
“Amazon handles sales tax, so I’m fine.”
Not always.
Amazon usually collects and remits tax on Amazon marketplace sales.
But you may still need to register in states where you have nexus.
And if you also sell on Shopify, that part can become your responsibility.
What to do:
• Check where Amazon is storing your inventory.
• Know which states matter.
• Do not wait until it becomes a cleanup problem.
For awareness only.
Sales tax rules vary by state, so speak with a licensed tax professional or sales tax specialist for advice on your situation.