Amazon Notification You Are No Longer An Affiliate
I received an email from Amazon informing me of this in my state of Illinois. This blog I am writing to help those who have websites that were earning good commissions but can no longer sell anything because of the Amazon restriction.
Own A Business In Another State
When I received my email I checked with Amazon Affiliate office that if I had a business in a state that they still recognize I could still be an affiliate with them. They said yes. Here is what you should do:
- Find a state that Amazon recognizes. I found Missouri. There are other states you can file as a business in.
- Next, contact the states Secretary of State to find the forms, rules and requirements for becoming a business in their state. In most cases, you will have to become an LLC company.
- Find out all of the fees you are required to include when you file your application.
- Next, you will need to find an agent in the state to receive all your mail from your business. I have a relative who is living in Missouri and they said that would be glad to be my agent. If you do not have a friend or relative who resides in the state you are considering becoming an LLC company in, you will have to pay an annual agent fee. Fees vary from $75 to $200.
- Ask the Secretary of State what additional annual requirements and fees are needed to maintain your LLC business in their state.
- Next, you need to consider which bank you need to open your business with. Check with your local bank to determine if they have a branch in the State you are considering to be an LLC company in.
After your account is officially opened, you can file your papers with the state you have chosen for your LLC business.
The above are the steps you will need to do if you want to maintain your affiliate status with Amazon.
Tax Reporting
As an LLC business, you must file annual 1065, and Schedule K and K-1 in the State where you live. You pay taxes on the profits or losses in the state where you reside. Schedule K-1 is given to every person in the LLC business. Schedule K and form 1065 are filed with your annual return.
I wrote this blog to assist WA members who may have received an email from Amazon informing them of their affiliate status.
Final Thoughts
I was successful in becoming an LLC business in another state before my expiration date and lost no business or any commissions during this transition. You can too. Does this require a lot of extra work? YES! But, it is worth it? Yes, if your websites are doing very well with Amazon sales and you are receiving commissions are a regular basis. Otherwise, you will have to start with a new affiliate program.
I hope that was helpful for some WA members. Good luck in your businesses.
Recent Comments
15
thanks for the info and the follow - glad i could return the favor - i'm just getting started with affiliates - is amazon hard to deal with? - it sounds like they're worth getting involved with - you should do a training on that - that would be good ed for newbs like me
Thanks for following me. I read your blog about Amazon notification. Thanks for posting the information.
Thanks for the Very informative blog post, George. I'm sure a lot of members will appreciate all the leg work you did to find this out. I'm glad you jumped all the hoops in time to keep your Amazon affiliate status. I do have a question tho...do you have to file in each state separately for Federal tax or just state tax or what?
Renni, You only file taxes in the State where you reside and not in the state where you incorporate as an LLC. You have to pay state taxes on the gains (profit) you make with Amazon. If a loss, you also get to report the loss when filing your taxes. The main point I was making is that you can keep your Amazon Affiliate status with them active even though you have an LLC in another state. The reason why we chose Missouri was for two reasons, we had an agent there so we did not have to pay the annual agent fee, and second, we only had to pay a one-time expense for filling to become an LLC company. The cost was only $50. One of the lowest in the nation. I hope this helps you.
I imagine having to go through all of that would be off putting for a lot of noobs like myself. I guess it might also open the door to the creation of factors, where a third-party like yourself who has gone through the process receives the commission from someone else's links and pays out to them less a percentage?
Thanks for that, I'm expecting that one day I'll need this information. NY is totally messed up. Currently I have been dropped by one advertiser over at CJ. Amazon's solution to NYS is to charge tax on sales in this state so apparently they are not dropping their affiliates here. Yet.
Amazon dumped me a little over a year ago... Calif... I moved on, then Jerry Brown made up with them and Amazon asked me back... I said "remember when I sold that $400+ medical book for you and you gave me one penny for commission? nope! still gone.
See more comments
Thanks. I don´t live in the States but this information is so useful. You do a great service with your sharing.