LONG BEACH, N.Y., Jan. 5, 2021 /PRNewswire/ — Rosenbaum Famularo, P.C. released today a video for sellers to help them avoid personal liability when starting their Amazon businesses. While it is not necessary for sellers to form a limited liability company (LLC) prior to selling on Amazon, many choose to do so for the added protection it offers.
“An LLC offers protection from personal liability for business debts and claims, just like a corporation,” said David Miller, Esq., managing attorney of the firm’s business law department. “This means that if the business itself can’t pay a creditor, such as a supplier or lender, they cannot legally come after an LLC member’s house, car, or other personal possessions.”
Many Amazon sellers create an LLC because it is simple and provides peace of mind. “Even if the motivation to start selling products on Amazon is for fun and not to replace full-time income, who is to say sales couldn’t grow exponentially, or an unfortunate situation arises that could turn a side business into a personal liability,” said CJ Rosenbaum, Esq., founding partner of the firm. “Because only LLC assets are used to pay off business debts, LLC owners stand to lose only the money that they’ve invested in the LLC.”
There are many advantages to forming an LLC aside from asset protection, such as building and establishing credibility and saving money on taxes. “LLCs are easier to establish and maintain than corporations. They enable small businesses to gain limited protection similar to a corporation but without the cost and complexity that corporations bring,” said Miller. “Under a limited liability company, for example, a seller is not required to file a separate tax return for their business.”
A commitment to help Amazon sellers kick off the new year on the road to success prompted the firm to release the video. E-commerce business owners looking to learn more can access the firm’s Business Law Library.
About Rosenbaum Famularo, P.C.
Rosenbaum Famularo, P.C., is a law firm based in Long Beach, New York, dedicated to serving sellers, either individual or companies, on Amazon.com and other Amazon websites around the world. The firm has staff in New York, Shenzhen, China and Yiwu, China. Interested sellers can contact the firm at AmazonSellersLawyer.com.
SOURCE Rosenbaum Famularo, P.C.