Choose by where you sell. The Estonian OÜ is an EU company with access to EU VAT and the One-Stop Shop (OSS), suited to selling on Amazon Europe. The LLC is a US company, common for selling on Amazon US. Neither avoids your country of residence’s taxes on its own.
*Reviewed on 1 October 2026. Informational guide, not tax advice.*
Indicative comparison
| Aspect | Estonian OÜ | US LLC |
|---|---|---|
| Main market | EU | US |
| VAT | EU company: VAT and OSS | Not EU-established: VAT registrations per country where stock is held |
| Profit tax | 0% retained, 22% distributed | Depends on structure and owner’s residence |
| Annual duties | Reports and bookkeeping in Estonia | Forms 5472 and 1120 for foreign-owned LLCs |
| Main risk | Tax residence if run from another country | Penalties for missing forms |
For penalties on Form 5472, check the IRS.
How to decide
- Market: where most of your sales are.
- Stock: which countries hold it (FBA Pan-EU).
- Residence: where you live and manage.
- Total cost: setup, bookkeeping, VAT and advice.
More detail: Estonian company for ecommerce and US LLC.
FAQ
Can I sell on Amazon Europe with an LLC? Yes, but as it is not EU-established it usually needs VAT registrations per country; check with an adviser.
Which is cheaper? It depends on services, bookkeeping and VAT registrations; compare total cost.
How Data Biz helps
We set up and run both OÜ and LLC. Request a free consultation and we will compare them for your case.
Sources and review
Estonia: e-Residency. US: IRS. Reviewed on 1 October 2026.