Is Selling on Amazon a legitimate business opportunity? [Roadmap to Your First Sale Series - 3]
There are a lot of discussions and ads on social media right now about working from home. Every time we’re scrolling through Facebook or Instagram we see ads and posts about new opportunities. We all tend to have the same question that crosses our mind when we see them:
“This sounds awesome but is it legit?”
With new technology arising every day, starting an online business from home is easier than ever.
Or is it?
There is one thing we need to clarify before we go further.
Starting an Amazon business is real, legitimate work. There are no get rich quick, set it and forget it autopilot methods for selling on Amazon. Business, no matter how small is still business. Even though it may be fun, it's NOT a hobby.
To determine what your true desire is, use this rule of thumb: A hobby costs money, a business makes money. If you sell or plan to sell anything and make a profit you have a business. Even if you only make a few bucks, you are in business if you turn a profit.
If you want to start a legitimate, money making online business on Amazon there are a few things you need to do.
1. File for an EIN #
The most important thing you need to do is protect your social security number by filing for an Employer Identification Number (EIN). Simply put, an EIN is a unique identification number assigned to a business entity (sole proprietor, LLC, S-corp, etc) that can easily be identified by the IRS. You’ll use this to set up your business without using your precious SSN all over the internet.
All potential Amazon sellers are required to provide tax information in order to sell on the platform. At the end of the year you will receive a 1099 from Amazon and you will need to pay taxes on the income you earned. Paying taxes is part of being a legitimate business.
2. Open a BUSINESS Checking Account
Next you will use the EIN you obtained to open up a business checking account. Separating your personal and business finances is essential right from the beginning. In order to open an Amazon sellers account, a tax ID number and banking information is required. All addresses, identification and banking information must match and be verified in order to start selling products on Amazon.
Once you have all these in place you are ready to open up your Amazon account.
What’s Next?
In part four of this series, we walk you through the basics of setting up your Amazon account. Read it here.
Ready to get started NOW?
You’ll be ready for your first sale on Amazon in as little as two weeks with our Start FBA Today™ program. We walk you through each step in our video course and fast track your learning curve so that you can start earning money on Amazon faster.
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