Kewal Krishan & Co, Accountants | Tax Advisors
Amazon Sellers Shopify

Introduction

Print-on-Demand (POD) on Amazon is booming in 2025. But skipping business registration can cost you: blocked accounts, denied tax deductions, and missed chances to scale.

Proven Tip:
Register as a business entity—LLC or corporation—before you launch your Amazon POD store. It protects your assets and gives you access to better tax strategies.

Proven Tip: Register as a Legal Business Before Listing Products

Even if you’re starting small, Amazon’s terms, tax rules, and financial institutions treat you as a real business once you start collecting payments.

With business registration:

  • You separate personal and business finances
  • You become eligible for EIN, business bank accounts, and wholesale supplier access
  • You can claim business tax deductions (design tools, samples, ads, freelancers)

Amazon also prefers sellers who upload tax details linked to an official business.

IRC Tax Code Relevance

If you’re selling POD products and earning income through Amazon Merch or Seller Central, your tax responsibilities fall under:

  • IRC §162 – Allows deductions for business expenses (e.g., design software, marketing, contractors)
  • IRC §1402 – Self-employment tax for sole proprietors and single-member LLCs
  • IRC §199A – Qualified Business Income Deduction (for pass-throughs like LLCs and S Corps)
  • IRC §6001 – Recordkeeping and EIN-based reporting for businesses

Relevant IRS Forms

FormPurpose
Form SS-4Apply for an EIN after registering your business
Form 1040 Schedule CReport POD income for sole proprietors or single-member LLCs
Form 1120 / 1120-SCorporate tax returns if incorporated
Form 1099-NECFor contractors or freelancers (designers, marketing help)
Form 4562Depreciate design equipment or software subscriptions

Example: Why One Seller Made the Switch to a Registered Business

A POD artist in California started selling t-shirts and mugs through Amazon Merch. Initially, she operated as an individual and used her SSN. But when her 2024 income crossed $87,000, her CPA advised forming an LLC taxed as an S Corp.

In 2025:

  • She drew a salary from her business
  • Reduced self-employment tax by ~17%
  • Deducted design tool subscriptions, sample products, and paid a part-time freelancer legally

Her Amazon account remained active with verified tax info, and she opened a business credit line for inventory scaling.

Step-by-Step Guide to Registering a POD Business for Amazon in 2025

Step 1: Choose Your Business Structure

LLC (most common), S Corp (if planning to grow), or C Corp (if taking on investors).

Step 2: Register with Your State

Visit your Secretary of State’s website and file Articles of Organization (LLC) or Incorporation (Corp).

Step 3: Get an EIN from the IRS

Apply via Form SS-4. You’ll need it to open business accounts and report taxes.

Step 4: Set Up Business Banking

Open a business checking account and separate all POD income and expenses.

Step 5: Update Your Amazon Seller Account

Provide your business name, EIN, and banking info in the tax section. This builds long-term trust and unlocks additional Amazon services.

Conclusion

In 2025, starting a Print-on-Demand brand on Amazon without a registered business is risky. For a few hundred dollars and a bit of paperwork, you can unlock better tax treatment, stronger brand credibility, and platform stability.

Call to Action

Ready to launch your Amazon POD business the right way? Need help choosing between LLC or S Corp, and setting up your EIN?

Email Anshul Goyal, CPA EA FCA at anshul@kkca.io for a 1-on-1 business registration and tax strategy session.

Disclaimer

This blog is for educational purposes only. It is not legal or tax advice. Please consult a licensed professional before forming a business or choosing a tax structure.

FAQs

1. Do I need a business license to sell POD on Amazon?

Not always, but registering as an LLC or corporation offers legal and tax advantages.

2. What’s the best structure for a new POD seller?

LLC is the most flexible. You can elect S Corp tax treatment once your income grows.

3. Will Amazon reject my account if I don’t have an EIN?

Not immediately—but adding your EIN improves trust and makes payouts smoother.

4. Can I deduct software like Canva or Photoshop?

Yes, under IRC §162, design software used for business is deductible.

5. Should I open a business bank account for my POD store?

Yes. It separates finances and supports accurate tax reporting.

About Our CPA

Anshul Goyal, CPA EA FCA, is a U.S.-licensed Certified Public Accountant and IRS Enrolled Agent. He advises Amazon sellers, creatives, and POD entrepreneurs on tax-smart business structures, startup filings, and ongoing compliance. Anshul helps sellers protect profits and stay audit-proof from day one.

For guidance on launching your POD business, contact anshul@kkca.io.

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