US LLC wins for US-focused brands needing US banking and Amazon brand registry simplicity; HK company wins for procurement-heavy sellers settling with Chinese suppliers in USD/HKD with lower friction. Many scale-ups run HK (procurement/trade) + US LLC (retail ops).
Comparison: (1) US LLC — Amazon brand registry straightforward, US customer trust, state compliance (Wyoming/Delaware), Form 5472 annual filing mandatory for foreign-owned (USD 25k penalty if missed), US bank via Mercury-type fintech. (2) HK company — natural for buying from mainland suppliers, USD accounts at HK banks, audit + profits tax 8.25%/16.5%, no US filing burden. (3) Combined: HK signs supplier contracts and holds inventory title; US LLC runs Amazon retail — transfer pricing between them must be arm's length. (4) Tax note: US LLC with foreign owners is a disregarded entity (default) — profits still taxable where the owner resides; get a US tax opinion if you sell via US entity. (5) VAT/sales tax: marketplace facilitator laws mostly cover it, but state economic nexus applies above thresholds.
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