For me as an entrepreneur based in India, the dream of selling products or services to clients from the United States is no longer considered a fantasy. Starting and managing an ecommerce business based in the United States of America can now be done from India owing to cross-border banking solutions and global ecommerce platforms.
There are numerous platforms that serve for selling like Amazon FBA, Shopify and Etsy which makes it easy for Indian entrepreneurs to launch their own companies in USA.
In this handbook, we will cover each stage in depth with regards to legal formation, taxation, payments, logistics and more so that you can effectively start an eCommerce business in the USA from India.
Why Indian entrepreneurs should establish e-commerce businesses in the USA
The reasons are a number of compelling factors due to which Indians set up ecommerce businesses across USA
✅ Earning from The World’s Leading Ecommerce Marketplace
Dell sells personal computers & Apple deals in mobiles however they are not they only sellers in America where as over 1.1 trillion dollars were generated just by online sales according to recent statistics along with many other fashion related outlets showing massive demand span across multiple product categories.
✅ Trust Around the World Customers
Credibility is instantly built with a registered business in the US. A customer is more likely to buy from a US company which also helps your brand as reputation for US products and business ethics are usually held in good light.
✅ Seamless Integration with Global Platforms
U.S. businesses have easier access to major global platforms like:
- Amazon.com
- Walmart Marketplace
- eBay
- Shopify
- Etsy
A stripe, PayPal account, or other American logistic service will be easier to get when you have a company established in USA.
✅ Tax Benefits
If you aren’t a citizen or resident of the US, don’t plan on having an office or staff in the US then a Foreign owned LLC based in the United States could offer profitable tax benefits if structured appropriately.
Step 1: Choose The Business Structure Carefully
If you’re based out of India but looking to sell into America, then best option available for you would be forming a Limited Liability Company (LLC).
Why choose LLC?
- Limited liability: protects personal assets as business debts and lawsuits cannot touch it.
- Pass through taxation: Owners share profits without being taxed twice unless optional flat corporate tax.
- Simple formation and compliance requirements: Managing becomes simple compared to corporations because they are easy to form.
- No requirement for U.S. citizenship: Foreigners can fully own and operate a U.S. LLC.
🗺️ Best states to form your LLC:
Wyoming: Low fees, no state income tax, high privacy.
Delaware: Corporate-friendly laws and legal infrastructure.
Florida: Ideal if you’re looking for ecommerce-friendly regulations and access to Southeast U.S. markets.
Step 2: Register Your U.S. LLC
Registering a U.S. LLC involves the following:
✅ Select a Unique Business Name
Your proposed name must be distinguishable from existing entities in the chosen state of registration. You may check name availability on the respective Secretary of State’s website.
✅ Appoint a Registered Agent
A Registered Agent is a person or company authorized to receive Official documents on behalf of your llc. The agent must have a physical address in the state where formation is taking place.
✅ File Articles of Organization
This is the LLC formation document which legally establishes it. It contains company name, registered agent with his/her name and address, and other necessary information relevant to its formation.
💼 Bizstartz offers LLC formation packages that include name check, Articles filing, and a Registered Agent, all tailored for Indian entrepreneurs.
Step 3: Obtain Your EIN (Employer Identification Number)
The IRS issues an EIN as a federal tax ID. It is needed for:
- Opening a U.S. bank account
- Filing taxes
- Setting up Stripe, PayPal, Amazon, Shopify and more.
- Hiring employees or contractors
Even if you are a non-resident without an SSN, you can apply for an EIN. Applications can be submitted through Bizstartz which specializes in non-resident applications.
🕐 Processing time: 5–15 business days (faster with proper documentation and filing support)
Step 4: Open a U.S. Business Bank Account
A U.S. business checking account is essential for receiving payments and managing finances. While traditional banks physically service businesses located in the US, some newer companies offer remote opening to non residents.
Recommended accounts for Indian founders:
- Mercury: Tailored towards startups and ecommerce businesses
- Relay: Exceptional for multi-user access and budgeting
- Wise (formerly TransferWise): Notable for holding USD and facilitating international transfers
💡 Tip: Ensure success by applying using your EIN, LLC documents, and a U.S business address.
Step 5: Acquire a U.S. Business Address and Telephone Number
To set up a business entity in the United States as well as meet verification standards for Amazon, Shopify, Stripe, etc., you will need the following:
✅ Virtual US Address
This will be used for:
- Business Registration \Legal Use
- Banking Correspondence \Business Communications’
- Receiving packages
✅ U.S. Phone Number
Used for:
- Business communications
- Two-factor verifications
- Customer service
📬 Bizstartz provides both address and phone number virtual services enables seamless setup alongside branding registration.
Step 6: Choose the Right Ecommerce Platform
Focusing on your niche and objectives enables selling through:
🛒 Amazon FBA USA
Send products to Amazon’s warehouse, avoid inventory management; they offer storage, packing, comprehensive shipping. Great for scalability with Prime access.
🛍️ Shopif Storefront
Create a fully branded storefront and gain control over customer data, design store, manage marketing, and integrate with social media platforms like Facebook or Google Ads at ease.
🧶 Etsy or ebay
Ideal outlets for vintage items as well as specialized handmade goods.
📦 Walmart Marketplace
Includes rigorous vetting process; remains highly rewarding financially once established.
Step 7: Set Up Payment Gateways
Having an LLC registered in the United States allows you to use some of the best payment processors available.
Popular Options:
- Stripe: Ideal for ecommerce; offers payments via credit card and bank transfers.
- PayPal Business: Highly trusted and commonly used by consumers in the U.S.
- Shopify Payments: Integrated for Shopify account holders, but they require a US account and entity.
- Square: Offers great solutions for both brick-and-mortar and online stores.
To register these gateways, usually you need to have:
- EIN
- Business Bank Account in the US
- Physical Address in the USA
- Company Website
Step 8: Set Up Fulfillment & Shipping
Fulfillment is critical to any form of ecommerce. To streamline delivery, you might consider enlisting help from Amazon or other shipping centers.
✅Amazon FBA
Amazon handles everything—great for high-volume sellers.
✅3PL Warehousing
Warehouses operated by third-party logistics companies such as ShipBob, Deliverr, or Red Stag Fulfillment will also hold inventory on their premises until shipped out.
✅Self-fulfillment from India
You may self-fulfill orders directly from India. However, this is more useful only when testing out a new market due to slower shipping times along with customs delays hindering timely service needed to scale quickly within these regions.
🚀Pro tip It helps if you partner with third party logistics firms which gives faster delivery enabling great customer service competing against US sellers.
Step 9: Understand U.S. Tax Requirements
In most cases as a foreign resident your tax situation varies depending on how you operate and manage your business location.
Federal Taxes:
- Generally, an LLC owned by foreigners is considered a disregarded entity for federal purposes.
- Not having a U.S. office or employees means you may not be liable to pay U.S. income tax.
- Regardless of the LLC’s federal tax obligations, the entity must filing return annually.
State Taxes:
- Wyoming has no state income tax.
- Some states impose a nexus law whereby registration for sales tax is mandatory once e-commerce sales cross certain economic thresholds.
Sales Tax:
- Depending on the customer’s location, it might be necessary to collect and pay sales tax. For compliance purposes, TaxJar and Avalara could prove useful.
🧾 Avoid non-compliance issues by partnering with professional bookkeeping and tax-filing services like Bizstartz to handle your taxes smartly.
Step 10 Bookkeeping & Annual Compliance
Comply with annual commitments even if all operations based in India because of residency requirements:
What Needs Record Keeping:
- Revenue and expenses,
- Issued invoices,
- Sales taxes collected
- Annual taxation filings per jurisdiction,
- FinCEN (Financial Crimes Enforcement Network) beneficial ownership reporting guidelines on BOI (Beneficial Ownership Information) report filings
Bookkeeping Tools:
- QuickBooks Online
- Xero
- Zoho Books
Or let Bizstartz handle your bookkeeping and filings so you can focus on growth, not paperwork.
Concluding Remarks
Establishing an ecommerce business in the United States while being based in India is not only feasible, but it can be one of the smartest decisions you make in 2025. You will be able to operate like a U.S. business without relocating, provided you have the right legal framework, tools, and support.
To top it off, you are given access to ecommerce marketplaces, payment solutions, and customers from all around the world..
Looking to Get Started?
At Bizstartz, our focus is assisting Indian entrepreneurs set up their companies in the U.S. We take care of:
- LLC Formation
- EIN Registration
- U.S. Bank Account Setup
- Virtual Address & Phone Number
- Bookkeeping & Compliance
👉 Launch Your U.S. Ecommerce Business Now
Frequently Asked Questions (FAQs)
Do I need to travel to the U.S. to open my company?
No, everything can be done 100% online through services like Bizstartz.
Can I use my Indian passport to register a U.S. company?
Yes, your passport is sufficient ID for forming an LLC and applying for an EIN.
How much does it cost to start?
Expect to spend $300–$1,000 depending on state and services used. To ease the process, Bizstartz offers all-inclusive packages tailored for his purpose.
With a U.S. LLC, am I able to register for an Amazon FBA Business?
Absolutely. In fact, a non-resident is preferred to have a U.S entity when doing Amazon FBA USA Partially because it simplifies tax filings.
