Selling on TikTok: A Guide to Opening a TikTok Shop with a US Company

As you know, social media channels have evolved beyond just connecting people—they've become highly active commerce hubs in recent years. While established brands have benefited from this shift, it has also created tremendous opportunities for small businesses. Small business owners can now sell their products globally instead of just locally, gaining access to opportunities that were once out of reach.

Like many of these platforms, TikTok has recently transformed from a place for entertaining videos into a powerful e-commerce channel. Thanks to TikTok Shop, which is particularly active in the United States, sellers can now sell products directly through videos or live streams. So how can you, as an international entrepreneur, start a US company to sell on TikTok? In this article, we'll walk you through the process step by step.

What is TikTok Shop?

TikTok Shop is TikTok's own e-commerce system. With this platform, users can purchase products they see in videos without ever leaving the app.

The system is currently active in the US, UK, Indonesia, Singapore, and several other countries. International entrepreneurs looking to sell in the US market can do so by forming an LLC in America. If you want to bring your products to the American market, our expert team is here to help—from company formation in any US state to accounting, annual reports, licensing, tax filings, and many additional services.

Why Do You Need a US Company to Sell on TikTok?

When registering for TikTok Shop's US version, the following documents are required. This means you must own an LLC or Corporation to sell in the American market. Don't worry—you can own a US company even without a residence or work permit in America. We can handle all the necessary processes for your US company on your behalf through an online consultation.

TikTok Shop lists the following requirements for selling in America:

• A company established in the US (LLC or Corporation)
• EIN (Employer Identification Number)
• US address and phone number
• US bank or payment account (Payoneer, Stripe, Mercury, etc.)
• Identity verification of the company owner (passport/driver's license)

With these documents, registration is completed through TikTok Seller Center. As we mentioned, you don't need to be physically present in America—the entire process can be done remotely.

How Does the Setup Process Work?

1. Company Formation

We schedule an online meeting with you. During this meeting, we explain the appropriate state and company type for the business you want to conduct on TikTok or any other platform.

Then we begin the LLC or C Corporation formation process in America. After the company is registered with the state, we obtain your company's EIN number from the IRS (Internal Revenue Service).

We also file the Beneficial Ownership Information (BOI) report, which has been required in the US in recent years and which we've covered in detail in previous blog posts.

All the processes mentioned above are included in our company formation service package.

2. Opening a TikTok Shop Account

We send you your company's formation documents. Your company is now ready for commerce on TikTok Shop. Here's what comes next:

• Register at TikTok Shop Seller Center.
• Upload company documents (Articles of Organization, EIN Letter, etc.).
• Once your account is approved, you can start adding products.

3. Payment Account Connection

With the EIN letter from the documents we send you, you can open a US bank account or Payoneer account and connect it to your TikTok Shop account to start receiving payments. TikTok sends your sales revenue on weekly or bi-weekly cycles. You can track everything through your payment account.

4. Adding Products

You'll need to enter photos, descriptions, and prices for the products you want to sell. You can either sell from your own inventory or use dropshipping to ship products through a supplier.

Ways to Increase Sales on TikTok

Selling on TikTok is different from traditional e-commerce websites. The key to success is content creation. Here are effective methods to boost sales:

• Product showcases in short videos: Natural 15–30 second videos are the most effective content.
• Live shopping sales: You can offer flash discounts during live streams.
• Influencer collaborations: You can offer commissions to content creators who promote your products.
• TikTok Ads: Create advertising campaigns to drive traffic to your product pages.

Tax and Legal Requirements

When you sell through TikTok Shop, your income counts as revenue for your US company. Therefore, you need to handle the following processes regularly:

Sales Tax Filing and Payment

The general rule in America for sales tax is this: if you're selling through marketplace facilitators like TikTok, Amazon, or Etsy, the sales tax should be determined, collected, and remitted by the platform where the transaction takes place. This means TikTok handles state sales tax for your TikTok sales.

Annual State Reports (Statement of Information / Annual Report)

Reporting requirements differ for each of America's 50 states. Some states require annual reports, while others require franchise tax, statement of information filings, annual fixed company fees, and other requirements. Processes vary by state, and there are even differences within regions of these 50 states. We manage all tax-related processes for you, so you don't need to worry.

Corporate Income Tax Returns

There are two types of corporate income tax in America: federal (IRS) and state. This is another reason why the state chosen for your company formation matters. Some states are exempt from corporate income tax.

At Simple Corporate Solutions, we handle all of these processes on your behalf. So you can focus on selling while we take care of the legal requirements.