Some of you in WA may have received an email from Amazon informing you that you can no longer be an affiliate because of your state instituting an online sales tax and at a certain date they will discontinue you as an affiliate and can no longer receive any commissions.

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.

You will need to secure an EIN (Employer Identification Number) for your business. You can open your account and file your LLC application and get an EIN at your local bank.

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.