Affiliate Nexus Laws (Amazon Affiliates)
To date a total of thirteen states have passed affiliate nexus laws. Those states include Arkansas, California, Connecticut, Georgia, Illinois, Kansas, New York, North Carolina, Pennsylvania, Vermont, Ohio and Rhode Island, Maine, Missouri and Minnesota.
If you are currently an affiliate in these states, Amazon will close your affiliate account. They usually provide you warning as to when they will take this action. They will continue to pay you commissions for prior months earned and up through the date they told you your account will be closed.
If you should file as an LLC company in one of the remaining states, you can be reinstated as an affiliate.
Recent Comments
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Thanks for the heads up. I was an Amazon affiliate over 5 years ago. Then my state had to act stupid. I was 38 cent away from my first 100 dollar comission when Amazon closed my account. I was told that I could sue the state for my commission, since they caused the problem. WOW. I do not even order from that comp-any anymore.
Well filing the LLC will have to be the way around the political minds in local government. Which is good for home base businesses any links about starting your own corporations?
Your best bet is to consult an accountant, preferably one that is a CPA. Filing requirements, paperwork, and all that other fun stuff is different when you form entities other then sole proprietorships. It may cost a bit up front but doing it right can save you a lot of headaches later.
Checking with a state's Department of Revenue or Finance department online will provide information required to create an LLC. I did a search for the state of interest (ie. how to create an LLC in (state name).)
I've heard mixed things about LLCs (or any corp) and getting around the affiliate nexus rules. I think that asking an expert is sage advice.
Seems like this is a good opportunity for some of Amazon's rivals, though I understand a few of them are dumping affiliates, as well?
Hmm... I'm confused here. I live in California and was approved by the Amazon Affiliate program about 2 months ago - and I've implemented various Amazon banner ads on my web site. Is this something new that's just now going into effect? Any link you can share that explains the details? Thanks.
Amazon still allows affiliates in New York even though New York passed nexus laws here. Amazon stated that there are just too many affiliates to block them from operating. Things could easily change at anytime though.
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We know that states and the federal government want a piece of every internet business through taxation. Will this be the price of doing business? I think so. Inevitable until we change our Business Plan to protect our assets. Why? See - http://www.sba.gov/content/limited-liability-company-llc. Every country differs in business laws. Amazon is an LLC and a Corporation in several states to protect their assets.
Am glad I get back to this blog through notifications. Thank you George.
Thank you gmee for the 'Like'. Look forward to our networking.
I think we as a large community of members should form a political action committee of sorts to combat this nonsense. If we have a voice (and rather large one) in Washington, we may be able to make some changes with respect to these issues. I know WA is worldwide and members outside the US may not have to worry about this. But as a community of people we are not necessarily powerless.