Amazon Canada KYC 2025: What Individual Sellers Need to Know

Keywords: Amazon Canada KYC 2025, Amazon.ca individual vs professional seller, Amazon seller account verification Canada, Do I need an LLC to sell on Amazon.ca, Amazon.ca self-attestation letter, Amazon.ca registration extract requirements

Let’s Start with the Big Question

If you’re selling on Amazon.ca—or thinking about it—you’ve probably heard about the new 2025 identity verification updates (aka KYC requirements). And if you’ve been scrolling through forums or social media, you might’ve seen some panic: “Do I need to incorporate a business now?” “Is my individual account going to be shut down?”

Let’s clear the air: No, you don’t need to form an LLC or register a business just to keep selling on Amazon.ca.

This guide is here to walk you through what’s actually changing, what Amazon is asking for, and what you need to do (and when). We’ll keep it simple, practical, and grounded in facts—no speculation, no scare tactics.

What’s This KYC Update All About?

In early 2025, Amazon Canada rolled out new identity verification requirements to align with Canadian regulations. This process is called KYC, short for “Know Your Customer” (or “Know Your Business”).

Here’s what’s important to know:

• The update started rolling out in January 2025.

• It’s happening gradually—not everyone is affected at once.

• You’ll only need to act after you receive a notification in your Account Health dashboard.

• Once notified, you’ll have 60 days to submit the required documents.

So, if you haven’t been notified yet, you don’t need to do anything right now.

Selling Plan vs. Business Entity: What’s the Difference?

This is where a lot of the confusion starts, so let’s break it down.

Selling Plans: Individual vs. Professional

Amazon offers two types of selling plans:

• Individual Plan: No monthly fee, but you pay a small fee per item sold.

• Professional Plan: Monthly subscription fee, plus access to tools like bulk listings and promotions.

👉 Switching to a Professional Plan does not mean you’ve become a business. It’s just a pricing model.

Business Type: What You Choose at Sign-Up

When you register your Amazon seller account, you’re asked to choose a business type. You can select:

• “None, I am an individual” – for personal sellers or sole traders

• Corporation / Partnership / Sole Proprietorship – for registered businesses

Amazon’s own documentation confirms that you can sell as an individual without forming a company. You don’t need an LLC, a Canadian business license, or even a Canadian bank account to get started.

What Documents Might Amazon Ask For?

Depending on how your account is set up (individual vs. business), Amazon may ask for different documents. Here’s a handy checklist:

For All Sellers (Individual or Business)

• Government-issued photo ID (passport, driver’s license, or national ID)

• Proof of address (bank statement, utility bill, or tax notice) dated within the last 180 days

If You’re Registered as a Business

• Business registration extract (e.g., certificate of incorporation or master business license)

• Articles of Organization

• EIN confirmation letter (CP575A from the IRS)

• Certificate of good standing (if requested)

If Amazon Requests a Self-Attestation Letter

This is a signed document that includes:

• Your business name and registration number

• Jurisdiction of registration

• Full names and birthdates of all beneficial owners

• Ownership percentages

• A statement confirming the accuracy of the information

📌 Note: These documents must be current—issued within the last 180 days.

Do You Have to Incorporate a Business?

Nope. Let’s say that again: You do not need to form an LLC or register a business just because of the 2025 KYC update.

The confusion comes from the fact that Amazon asks for business documents if your account is set up as a business. But if you’re selling under your personal name and selected “individual” during registration, you’re good to go with just your ID and proof of address.

Can You Use a U.S. LLC to Sell on Amazon.ca?

Yes, you can. If you’re a non-resident seller and prefer to operate under a business entity, forming a U.S. LLC is a valid option.

Here’s how it works:

Steps to Use a U.S. LLC on Amazon.ca

1. Form your LLC in any U.S. state (more on that below)

2. Get an EIN (Employer Identification Number) from the IRS

3. Update your Amazon account:

   • Upgrade to a Professional Plan (optional)

   • Change your legal entity info to reflect your LLC

4. Complete the tax interview:

   • Amazon will guide you through the right IRS form (W-8BEN or W-9)

5. Upload your documents:

   • ID, proof of address, Articles of Organization, EIN letter

   • Self-attestation if requested

📌 Make sure all documents are clear, legible, and issued within the last 180 days.

What About Canadian Taxes?

Here’s the deal: If your total sales to Canadian customers go over CA$30,000 in any 12-month period, the Canada Revenue Agency (CRA) requires you to:

• Register for GST/HST

• Collect and remit taxes

This isn’t an Amazon rule—it’s Canadian law. If you’re under the threshold, you generally don’t need to register, but it’s your responsibility to keep track.

🔗 https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/digital-economy-gsthst/find-out-need-register/sales-goods-threshold-amounts.html

Best U.S. States to Form an LLC (If You Choose To)

Amazon doesn’t care which U.S. state you choose for your LLC—but the state you pick can affect your costs, privacy, and paperwork.

Here’s a quick comparison:

💡 Tip: Think about where your inventory will be stored (nexus), your budget, and whether you need a U.S. bank account. When in doubt, talk to a tax advisor.

Step-by-Step: Switching to a Professional Plan + LLC

If you decide to go the LLC route, here’s what the process looks like:

1. Decide if you need a Professional Plan

   • If you sell more than 40 items/month or want advanced tools, it might be worth it.

2. Form your LLC

   • Choose a state, file your paperwork, and get your EIN.

3. Update your Amazon account

   • Go to Account Info → Business Information → Legal Entity

   • Enter your LLC’s legal name and address (exactly as shown on your EIN letter)

4. Complete the tax interview

   • Amazon will guide you through the right form (W-8BEN or W-9)

5. Upload your documents

   • Make sure everything is current and clearly scanned

6. Watch your Account Health dashboard

   • Respond to any requests within 60 days

Final Thoughts: What You Actually Need to Do

Let’s wrap it up with a quick checklist:

✅ You don’t need to incorporate unless you want to
✅ Wait for Amazon’s notification before submitting documents
✅ If you form an LLC, keep your documents up to date
✅ Monitor your sales for the CA$30,000 GST/HST threshold
✅ Choose your LLC state based on your needs—not hype

📚 Helpful Resources

• https://sellercentral.amazon.ca/seller-forums

• https://sellercentral.amazon.ca/help

• https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/digital-economy-gsthst/find-out-need-register/sales-goods-threshold-amounts.html

• https://bbcincorp.com/offshore/articles/best-state-to-form-an-llc-for-amazon-fba