For Amazon FBA sellers

Your inventory is in states you have never visited

Amazon spreads your stock across fulfillment centers nationwide, and each one can create physical nexus, no sales threshold required. Amazon collects the sales tax, but the registrations, and the income and franchise tax it never touches, are on you. We map where your inventory sits and handle what it triggers.

Inventory nexus mapped Amazon collects, we handle the rest Filings on time
Nexus and tax handled for sellers across every marketplace Inventory nexus mapped by state Income and franchise tax covered 4.9 from 8,200+ reviews State fees at cost
45 states
Where Amazon collects your FBA sales tax for you
1 pallet
Enough inventory to create physical nexus, no threshold needed
0
States with income or franchise tax that Amazon does not cover
8 to 15
States a typical FBA seller has inventory nexus in
The nexus Amazon does not tell you about

Amazon moves your stock. The tax follows it

Fulfillment by Amazon means Amazon decides where your inventory lives, splitting a single shipment across warehouses in states you have no other tie to. Each of those states can treat stored inventory as physical presence, which is nexus with no sales threshold to cross, and a recent ruling found even a tiny amount of inventory was enough.

Amazon collects the sales tax on those orders, which is real relief, but it stops there. The registrations some states still require, and the income and franchise tax that inventory nexus can trigger, are entirely yours. We map where your stock sits and handle exactly what each state asks for.

The FBA blind spot
  • Inventory in states you never chose
  • Physical nexus with no threshold to cross
  • Assuming Amazon covers everything
  • Income and franchise tax left unfiled
  • A state notice for years of exposure
Mapped on File.Business
  • Every inventory state identified
  • Physical nexus registered where needed
  • Amazon collects, we handle the rest
  • Income and franchise filings covered
  • No surprise notice years later
Where does inventory pull you in?

Tap the states that hold your stock, see what it triggers

These are common FBA fulfillment states. Select where your inventory sits to see the two very different tax pictures it creates.

Common FBA inventory states

5 states, sales tax handled

Amazon collects and remits the sales tax on your FBA orders in all of them, under marketplace facilitator laws. That part is off your plate.

5 states of physical nexus

Stored inventory is physical presence, which can require registration and, separately, income or franchise tax that Amazon never collects. This part is on you, and we handle it.

Which states hold your stock changes as Amazon moves it. We pull your inventory report, map the nexus, and register where you owe. See sales tax registration.
How your FBA business gets compliant

From first shipment to nexus handled

Five steps, in the right order. Select one to see the detail.

Step 1

Form the LLC behind your brand

An LLC separates your personal assets from the business, which matters the moment you hold inventory and sign supplier terms. We form it in your home state or wherever fits your plan, with state fees passed through at cost.

Liability protection before your stock ships to Amazon.
Entity: LLC FORMED
Personal assets separated
Ready to send inventory
Step 2

Get your EIN and resale certificate

The EIN is your federal tax ID for banking and taxes, and a resale certificate lets you buy inventory without paying sales tax, since the tax is collected when the item finally sells. We set up both so tax is not eating your cost of goods.

Buy for resale tax-free, collect at the final sale.
EIN: ISSUED
Resale certificate ready
Business banking opened
Step 3

Find where your inventory actually is

Amazon reports show which fulfillment centers hold your stock, and therefore which states you have physical presence in. We pull that report and turn a list of warehouse codes into a clear map of the states where you have nexus.

Your inventory report, mapped to real nexus states.
Inventory report: PULLED
Nexus states identified
No hidden warehouse states
Step 4

Register where the inventory creates nexus

In each state where your stock creates physical nexus, we handle the sales tax registration where it is required and set up the income or franchise tax registration those states expect, so both sides of the obligation are covered, not just the one Amazon touches.

Sales tax and income or franchise registrations, both handled.
Nexus states: REGISTERED
Income and franchise set up
Both obligations covered
Step 5

File the returns, and watch for new states

Amazon remits your FBA sales tax, but many states still want a return from you, sometimes a zero or marketplace-deduction return, plus the income and franchise filings. We file them, cover any own-store sales, and flag new inventory states as Amazon moves your stock.

Every return filed, and new states caught in the calendar.
Returns: FILED
New inventory states flagged
Compliant as Amazon shifts stock
How this compares for an FBA seller

The nexus and the tax, not just the sales filing

Most tools stop at sales tax. The inventory and income side is where FBA sellers get caught. Here is the difference.

Capability File.Business DIY spreadsheets Sales-tax tool alone Generic filer
Inventory nexus mapped by stateNot availablePartlyNot available
Sales tax returns where requiredManualPer filing
Income and franchise tax coveredNot availableNot availableSometimes
Entity plus S-corp guidanceNot availableNot availableFormation only
New inventory states flagged over timeNot availableIf you syncNot available
Transparent, published pricingTieredPer filing

The honest version. A high-volume seller across dozens of states benefits from a dedicated sales-tax platform and a good accountant, and nothing here replaces tax advice. What File.Business does is connect the entity, the inventory nexus, and both the sales and income filings in one place, so the part Amazon does not handle does not fall through. Compare on the comparison hub.

BosAI for FBA sellers

An operator who knows the part Amazon skips

Ask in plain English. BosAI knows inventory nexus, marketplace collection, and the income tax that comes with it.

BosAISeller workspace, Northwind Goods

Amazon collects all my sales tax. Am I actually fine?

On sales tax, largely yes, Amazon collects and remits on your FBA orders. But your stock is stored in 11 states, and that inventory creates physical nexus, which can require registration and, separately, income or franchise tax that Amazon never touches. Those are the pieces I am handling.

How do you know my inventory is in 11 states?

From your Amazon inventory report, which lists the fulfillment centers holding your stock. I mapped those warehouse locations to states, and it currently comes to eleven. I watch it, because Amazon shifts inventory and can add a new state without telling you.

One state says I owe income tax even though Amazon paid the sales tax. How?

Because they are two different taxes. Marketplace facilitator laws only cover sales tax. Your inventory there also creates income or franchise tax nexus, which is separate and yours to file. I have the registration and the filing set up for that state.
From a seller who got caught once

The income tax notice never came

I thought Amazon collecting my sales tax meant I was covered. Then a state hit me for income tax on inventory I did not know was even there. Moving to File.Business, we mapped all eleven states my stock touches and got registered on both sides. When Amazon opened a new warehouse state, it was on my calendar the same week. No more surprise notices.
Founder
Amazon FBA brand, eight-figure sales
11 states
of inventory nexus, mapped
2 taxes
sales and income, both handled
0
surprise notices since

Representative composite based on FBA seller outcomes. Nothing here is legal or tax advice; consult your tax professional for your situation.

For the questions FBA sellers actually ask

Straight answers on inventory, nexus, and tax

Does FBA inventory really create nexus?
Yes. Inventory stored in a state is a physical presence, which creates nexus there regardless of how much you sell, so there is no threshold to stay under. A recent California ruling found that even a very small amount of stored inventory was enough to trigger it, so a single pallet in a warehouse can pull you into a state.
Doesn't Amazon already collect my sales tax?
On your FBA orders, yes. Marketplace facilitator laws, which every state with a sales tax now has, make Amazon collect and remit the sales tax for you. But many states still want you registered and filing a return, sometimes a zero or marketplace-deduction return, and that collection does not cover income or franchise tax.
What about income or franchise tax?
This is the part sellers miss. Marketplace facilitator laws only cover sales tax, so the income, franchise, or gross-receipts tax that inventory nexus can trigger in the roughly forty states that levy them is entirely your responsibility. We set up those registrations and filings alongside the sales tax. See the compliance calendar.
How do I know which states hold my inventory?
Amazon provides inventory reports that show which fulfillment centers hold your stock, and those centers map to states. We pull the report, translate the warehouse locations into a list of nexus states, and keep watching it, since Amazon can move your inventory into a new state at any time.
Do I still need to register anywhere myself?
Usually yes. In many states, inventory alone creates a registration obligation even though Amazon collects the sales tax, and others pull you in on income tax or business-license grounds instead. Treatment varies state by state, so we check each one rather than assuming, and register where you owe. See sales tax registration.
What about my own store alongside FBA?
Sales through your own store are your responsibility, since no marketplace collects for you there, and economic nexus can apply on top of the physical nexus from your Amazon inventory. We handle both channels together so nothing is double counted or missed. See ecommerce.
Should my FBA business be an LLC or an S-corp?
Most sellers start as an LLC for its liability protection and simplicity. Once the business is consistently profitable, electing S-corp treatment can reduce self-employment tax on the profit you take as distributions, subject to paying yourself a reasonable salary. We flag when your numbers make it worth it. See S-corp election.
Does this replace my accountant?
No, and this is not tax advice. Your accountant handles your income tax returns and strategy, and at very high volume a dedicated sales-tax platform helps too. File.Business handles the entity, the multi-state registrations, and the sales and franchise filings, and keeps the calendar, so the routine multi-state work is done. Talk to us.
Amazon collects. We handle the rest.

Know exactly where your inventory owes tax

Form the LLC, map the states your stock touches, and let us handle the registrations, the sales returns, and the income tax Amazon never collects. Start now, or talk with our team about your inventory.

SOC 2 Type II · Not a law firm · State fees passed through at cost