You can use your personal bank account to sell on Amazon, but Amazon will eventually require a separate business account
Amazon allows you to start selling with a personal bank account. When you first set up a seller account, you can link your existing checking or savings account to receive payouts. However, Amazon's requirements change as your sales grow, and at certain thresholds — usually around $20,000 in annual sales or after your first year of selling, whichever comes first — the platform requires you to switch to a business bank account and provide a business tax ID.
The reason Amazon makes this shift is not arbitrary. A business bank account creates a clear separation between your personal money and your business money, which protects both you and Amazon. It also makes tax reporting simpler when the time comes, since your business income and expenses are already separated from your household finances.
Starting with a personal account is common and legal. Many people begin selling on Amazon this way, then open a business account once they know they are serious about the venture. The transition is straightforward, but understanding the timeline and requirements now can save you from scrambling later.
Key Takeaways
- Amazon permits personal bank accounts for new sellers but requires a business account once your sales reach certain thresholds, typically $20,000 annually or after one year of selling.
- You will need to provide a business tax ID (EIN or sole proprietor SSN) when you upgrade, along with documentation that matches your business bank account.
- Switching from personal to business account takes a few days to a few weeks depending on how quickly Amazon verifies your information.
- Using a personal account for business sales can complicate your taxes and make it harder to track which transactions are business-related versus personal.
- Some sellers choose to open a business account from the start to avoid the transition later, even if they are not yet required to do so.
What Amazon requires when you start selling
When you create your initial Amazon seller account, you provide your Social Security number and link a personal bank account where Amazon will deposit your payouts. Amazon verifies the account by making two small test deposits (usually under $1 each) and asking you to confirm the amounts. This process typically takes three to five business days.
At this stage, Amazon does not require you to have a business license or a separate business account. You are operating as a sole proprietor — a legal term meaning you are self-employed and your personal finances and business finances are technically the same entity. This is perfectly legal, and many small sellers operate this way.
The personal account setup is designed for people testing whether selling on Amazon makes sense for them. It removes barriers to entry and lets you start moving inventory without major upfront costs or paperwork.
When Amazon requires you to switch to a business account
Amazon monitors your sales volume and will notify you when you need to upgrade. The most common trigger is $20,000 in gross sales within a rolling 12-month period. Some sellers also receive the requirement after their first year of selling, regardless of sales volume. Amazon sends an email to your seller account with a important date — usually 30 to 90 days — to complete the upgrade.
When this happens, you cannot straightforward keep using your personal account. Amazon will restrict your ability to list new products and process payouts until you provide a business tax ID and switch to a business bank account. The restriction is not permanent, but it does pause your selling activity, so acting quickly matters.
A few sellers also choose to upgrade voluntarily before hitting the threshold. This is optional but can be useful if you want to establish a formal business structure early or if you plan to hire employees or explore for business credit.
What you need to provide for the upgrade
When Amazon asks you to upgrade, you will need to provide a business tax ID. For a sole proprietor (which is what you are if you have not formed an LLC or corporation), this is usually your Social Security number, which you already gave Amazon. However, many sellers obtain an Employer Identification Number (EIN) from the IRS instead, which is a nine-digit number specific to your business.
You will also need to open a business bank account and provide those account details to Amazon. The account should be in your business name or your personal name with a "doing business as" (DBA) designation. Most banks require a business license or EIN to open a business account, though some will accept a sole proprietor's Social Security number.
Amazon will ask you to verify the business account the same way it verified your personal account — by confirming two small test deposits. You will also need to provide documentation that matches the account, such as a recent bank statement or a letter from your bank on official letterhead.
How to open a business bank account
A business bank account works much like a personal account but is designated for business use. You can open one at any bank or credit union that offers business accounts. Some banks have lower minimum balances or fees for business accounts than others, so it is worth comparing a few options.
To open the account, bring a government-issued ID, your Social Security number or EIN, and proof of your business name (a DBA registration from your county, a business license, or even a letter from Amazon showing your seller account). If you have an EIN, bring the IRS letter confirming it. If you do not have an EIN yet, you can obtain one free from the IRS website (irs.gov) — the process takes about 15 minutes online, and you receive your number when ready.
Once the account is open, link it to your Amazon seller account through your seller central dashboard. Navigate to Account Info, then Bank Account Information, and follow the prompts to add your new business account. Amazon will send the test deposits within a few business days.
The tax and record-keeping advantage of separating accounts
Using a business account from the start — or switching to one as soon as you can — makes tax time much simpler. When your business money is in a separate account, you can easily see which transactions are business-related and which are personal. This matters because you can only deduct business expenses on your taxes, not personal ones.
If you mix personal and business money in one account, you have to manually sort through every transaction at the end of the year to figure out what counts as a business expense. This is tedious, error-prone, and can raise red flags with the IRS if your records look disorganized. A separate account creates a clear paper trail that protects you if you are ever audited.
You will still owe taxes on your Amazon income whether you use a personal or business account — that does not change. But the business account makes it easier to prove what you actually earned and what you spent to earn it.
What happens during the transition period
Once you submit your business account information to Amazon, the company typically takes three to seven business days to verify it. During this time, you can usually still list products and make sales, but you may not be able to process payouts until verification is complete. Amazon will send you an email confirming when the switch is done.
Your existing personal account does not disappear — Amazon straightforward links your new business account as the payout destination. Any sales that came through your personal account remain in your sales history. Going forward, all payouts go to the business account.
If Amazon rejects your business account information (for example, if the name on the account does not match your tax ID), they will send you a message explaining what needs to be corrected. You can resubmit the corrected information, and verification usually happens on the next attempt.
Frequently Asked Questions
Can I use my spouse's bank account instead of opening my own business account?
No. Amazon requires the bank account to be registered to the person or business entity listed on the tax ID. If you are using your Social Security number as your tax ID, the account must be in your name. If you have an EIN for a business entity (like an LLC), the account must be in that entity's name. A joint account with your spouse may work if both names are on the tax ID, but you should confirm with your bank and Amazon first.
What if I do not want to open a business account yet?
You can continue selling with your personal account until Amazon requires you to upgrade. However, once Amazon sends the upgrade notice, you have a important date — usually 30 to 90 days — to complete it. If you do not, Amazon will restrict your account. There is no way to avoid the requirement permanently if you keep selling and hit the sales threshold.
Do I need an EIN, or can I use my Social Security number?
You can use your Social Security number as a sole proprietor. An EIN is optional but useful because it keeps your personal and business finances more separate and may be required by your bank to open a business account. You can obtain an EIN free from the IRS website in about 15 minutes.
Will switching accounts affect my seller rating or reviews?
No. Your seller rating, reviews, and sales history stay with your seller account. Switching the bank account is a backend change that customers do not see and that does not affect your standing on the platform.
How long does it take to get approved for a business bank account?
Most banks approve a business account process within one to three business days if you explore in person with all required documents. Online applications may take longer — sometimes up to a week. Once approved, the account is usually active the same day or the next business day, and you can link it to Amazon when ready.