Have you ever seen “Sold by Amazon services,” and you’re wondering if it is the same Amazon you’ve always known?
Before going deeper, what is an LLC? We all know what Amazon does. It’s a favorite marketplace for millions.
However, what is Amazon Services LLC? And are they the same?
A Limited Liability Company or LLC is any business structured to limit the owners’ liability. A huge corporation may establish LLCs as subsidiaries to reduce potential problems for the whole organization.
LLC not only limits the personal liability for business debts, but it also provides better opportunities for raising investment and gives lots of tax advantages as no tax is levied separately on the Company.
Also, only assets that are registered in the name of the Company can be subjected to claims by creditors.
Being a huge corporation, Amazon has different subsidiaries, including LLCs. They are not a stand-alone company and are subsidiaries of Amazon Inc., the parent company. Many companies, therefore, are set up as LLCs for this reason, and Amazon is a prime example.
As large as Amazon is, you may wonder why it would ever need subsidiaries. The reasons are as simple as what was highlighted above. One of the significant advantages is the reduction of taxes.
For the kind of business that it is, an LLC best serves the purpose of helping its flexibility. So, Amazon Inc, the parent company, has several subsidiaries which allow them to take advantage of several tax benefits in several states.
With LLC subsidiaries, this reduces the tax burden and improves service delivery for customers all around the country.
When you go to the stock exchange, you’re dealing with Amazon Inc.
When you log in to your Amazon account as a seller or a buyer, and you are in your favorite marketplace, you are on Amazon.com LLC.
However, another subsidiary of Amazon is Amazon Services LLC.
Amazon Services is a subsidiary of Amazon.com Inc and functions as a company that helps third-party sellers store and ship products to customers.
If an entrepreneur buys or manufactures products for sale, he can send them to Amazon, where customers can order them. It is the responsibility of Amazon services LLC to take the order and ship it to the buyer.
As noted earlier, Amazon, just like most big businesses, can break its services into smaller units. The business is now segmented into smaller units that can be more easily handled. This has financial and legal implications.
Amazon Services LLC is a legitimate part of the Amazon family, and it is not different from dealing with Amazon itself.
So, to answer the question, “is Amazon.com LLC actually Amazon?”
The answer is yes because it is an intricate part of the Company. Amazon Services LLC also offers most of the Web services that are available on the Amazon platform. The Company was founded in 2006.
You need to distinguish between Amazon Services LLC, a firm selling on Amazon, and Amazon.com Inc. Amazon LLC operates by selling products via the Amazon platform. When your product is listed as sold by Amazon LLC, it is sold by Amazon on behalf of vendors.
Entrepreneurs can continue selling on Amazon without forming an LLC. You can remain a sole proprietor and keep selling on the platform.
However, once your business starts growing, you may want to consider starting an LLC, although this is not compulsory. But once your business starts operating as an LLC, it becomes a separate legal entity.
Once an LLC has been set up, it has separate financial and legal privileges different from a parent company or the proprietor.
Even as a business owner or entrepreneur on Amazon, it begins to operate independently of you once you set up an LLC.
For Amazon, this is important so that the flexibility required to operate in multiple business environments can be maximized.
The three primary reasons why Amazon services LLC is a different entity are:
- It reduces the liability of business debts
- It generates more capital
- It offers tax benefits
For Amazon to limit unnecessary taxes and increase profitability, it has subsidiaries. The parent company, Amazon.com, is incorporated in Delaware, but its subsidiaries include Amazon.com LLC, which is also based in Delaware, and Amazon Services LLC, based in Seattle.
As an LLC, Amazon services can reduce the overall cost of doing business by Amazon, reduce its taxes, raise capital more efficiently and reduce the overall liability of the parent company.
Amazon Services LLC was incorporated as a part of Amazon inc. As noted, an LLC is formed for the benefit of the parent company.
Amazon services are a part of Amazon, and the distinction is only for business purposes. Amazon LLC should be considered an Amazon company as a shareholder, buyer, or seller.
If you have ever had any confusion over the status of Amazon.com services LLC and you have ever wondered if the Company is actually part of Amazon, then this should clear your doubts.
Amazon is a huge company, and most huge companies create subsidiaries to make their finances easy to manage.
Amazon Services LLC is one of Amazon Inc.’s subsidiaries, and although incorporated separately, it is part of the big family.