For Pakistani Sellers: How a US LLC Unlocks Amazon & Payments

Getting your online store off the ground is an exciting time. You've sourced your products, you're building your brand, and you see a massive opportunity on platforms like Amazon. But then you hit a common roadblock that trips up many sellers from Pakistan: how do you properly set up your business to sell in the US market? The internet offers a whirlwind of conflicting advice. Some say you can just use your local details and figure it out as you go, while others insist on a more formal US structure. This initial decision feels confusing and high-stakes, leaving you stuck before you’ve even really started.

Charting Your Course in the US Market

For many aspiring e-commerce entrepreneurs, the most straightforward path seems to be using their existing Pakistani identity and banking details. On the surface, this approach feels simpler and more cost-effective. You avoid the immediate costs and paperwork of setting up a foreign company, which allows you to test your products on the market faster. This direct method can work for a little while, and for some, it might be enough to get a small taste of international sales.

However, this path is often filled with unexpected and frustrating challenges that can halt a growing business in its tracks. Many sellers find their Amazon account verification process gets stuck in a loop, demanding documents that don't quite fit the system's requirements. A bigger issue arises with payment gateways. Major processors like Stripe and PayPal, which are essential for smooth customer transactions, have stringent requirements that a non-US entity often cannot meet. This can lead to held payments, high conversion fees, and a constant worry about account stability. Furthermore, when you're ready to protect your brand through Amazon's Brand Registry, you'll find that having a US-based business entity and trademark is a much smoother path to approval. The initial simplicity can quickly become a complex web of limitations that cap your store's potential.

This is where forming a USA LLC (Limited Liability Company) presents a fundamentally different approach. Instead of trying to adapt your local setup to a foreign market, you establish a legitimate American business identity. This isn't just about paperwork; it's about creating a solid foundation that US-based platforms and financial systems are built to work with. An LLC gives you a formal business presence, a registered US address, and an Employer Identification Number (EIN), which is the key to unlocking critical services. Suddenly, the doors to US banking, seamless payment processing, and smoother Amazon relations swing open. It transforms your operation from an outsider trying to get in to a recognized player within the US e-commerce ecosystem.

• Bank Accounts: A US LLC allows you to open a US business bank account, eliminating high wire transfer fees and payment holds common with international accounts.
• Amazon & Shopify Payments: Gain access to native payment solutions like Amazon Pay and Shopify Payments, which are often unavailable to sellers operating from Pakistan.
• Supplier & Partner Trust: A US entity enhances your credibility when dealing with American suppliers, wholesalers, and potential business partners.
• Brand Protection: It simplifies the process of registering a US trademark, which is a crucial step for getting accepted into and protecting your brand on Amazon Brand Registry.
• Account Stability: Amazon Seller Central accounts tied to a verified US business are generally viewed as more stable and face a lower risk of sudden suspension over entity verification issues.

Of course, establishing a US LLC is an investment of both time and money, and it may not be the perfect fit for everyone right at the start. If you are simply experimenting with a single product and have very low sales expectations, the initial cost and administrative steps might feel premature. The direct, DIY approach could be sufficient for a brief testing phase. However, for any seller who is serious about building a sustainable, long-term brand, scaling their operations, or running a professional dropshipping business, the limitations of the alternative method will likely become a significant handicap. A US LLC is designed for those who have a vision beyond just a few initial sales and want to build a durable business infrastructure from day one.

Making this choice is a big step, and it’s perfectly normal to want to ensure you're making the right decision for your specific business goals. It’s less about which option is universally "better" and more about which one aligns with your ambition and long-term vision for your brand.

Find out if a US LLC is the right move for your Amazon business.