The ABCs of Selling in the US: Key Terms to Know
The moment a manufacturer decides to sell in America, a wall of acronyms appears: LLC, EIN, FBA, MoCRA, sales tax... Setting out without knowing them is like sitting down to play without reading the rules. This article is a glossary: each term in one paragraph, in plain English. The goal isn't to make you an expert, but to give you enough to know what you need help with, and from whom.
Company and tax
LLC (Limited Liability Company) The most common business type in the US. Think of it as the counterpart to a limited company in Türkiye: it separates your personal assets from company debts. Foreigners can form one, and you don't need to live in the US. It's usually the first step for e-commerce.
EIN (Employer Identification Number) Your company's US tax ID. What a Social Security number is to a person, an EIN is to a company. You need it to open a bank account, become a marketplace seller and file taxes.
ITIN (Individual Taxpayer Identification Number) A personal tax ID for foreigners who don't have a Social Security number. Some processes ask for a personal ITIN alongside the company's EIN.
Sales Tax Instead of VAT, the US has sales tax set by each state, at a different rate in each. The key point: large marketplaces like Amazon and Walmart collect and remit this tax for you (under what are called "marketplace facilitator" laws). So if you sell on these platforms, you usually don't need to file separately. But if you sell through your own Shopify store, that responsibility is yours.
Resale Certificate A document showing you're buying goods to resell them. With it, you don't pay sales tax when buying from suppliers, because the end customer pays the tax at purchase.
Logistics and customs
Fulfillment Everything from receiving an order to delivering it: storage, packing, shipping and returns. It's the answer to "I made the sale, so how does it get there?"
3PL (Third-Party Logistics) A logistics company that handles fulfillment for you. Your products sit in their US warehouse, and they pack and ship as orders come in. It's the go-to alternative to shipping parcels one by one from Türkiye.
FBA (Fulfillment by Amazon) Amazon's own fulfillment service. You send your products to Amazon's warehouses, and Amazon handles the rest: storage, shipping, returns and customer service. It brings the Prime badge and fast delivery, but comes with commissions and storage fees.
Importer of Record The party legally answerable for "who is importing these goods" when your product enters US customs. This party is responsible for duties and compliance. For foreign manufacturers, deciding who takes on this role is an important call.
HTS Code (Harmonized Tariff Schedule) Every product's classification code at US customs. Your duty rate is based on this code. The wrong code means either overpaying or getting held up at customs.
Brand and regulation
Trademark Registering your brand in the US with the USPTO. Selling without one exposes you to brand theft, counterfeiters and having your marketplace listings taken down. It's a layer of protection to put in place before you start selling online.
MoCRA (Modernization of Cosmetics Regulation Act) The current US law for cosmetics. If you export cosmetics, you need facility registration and product listing. Note: this isn't "FDA approval." The FDA doesn't approve cosmetics. You register. Using the right term matters.
DSHEA The US law governing dietary supplements. If you sell supplements, labeling and notification rules fall under this framework.
FDA Registration (Food / Cosmetics / Medical) Depending on the category, food, cosmetic and medical products may require facility registration and product notification with the FDA. Each category carries different obligations: MoCRA for cosmetics and FSMA for food are not the same thing.
Business model
B2C (Business to Consumer) Selling directly to consumers. Amazon, Etsy, your own website: the end customer is an individual buyer.
B2B (Business to Business) Selling to businesses such as distributors, wholesalers and retail chains. Usually larger volumes, but US buyers often want to see an e-commerce presence first.
DTC (Direct to Consumer) Selling to consumers through your own channel, usually your own website, with no middleman. You keep control of the brand and the customer data, but you have to bring in the traffic yourself.
The bottom line
You do not need to master all of these terms on your own. But knowing which ones apply to you helps you ask the right questions and work with the right partners. A cosmetics maker should understand MoCRA first, anyone selling from their own site should understand sales tax, and anyone going onto Amazon should understand FBA.
Your product's category determines which of these terms are critical for you. Tell us about your product, and we can help outline a roadmap for your business.
