Clarification on Amazon Developer Services Agreement and Revenue Sharing

Amazon Appstore Q&A
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I have reviewed the Amazon Developer Services Agreement and would appreciate clarification on the following points:

  1. Revenue Sharing Model (80-20 Split):
    My understanding is that accounts generating less than $1 million in revenue are subject to an 80-20 revenue split, with 80% going to the account holder and 20% retained by Amazon. Is this model applicable to all account holders globally? Additionally, if I register my developer account under a U.S.-based LLC, will the 80-20 split remain the same? Could you also clarify any specific tax obligations I should be aware of in this scenario?
  2. LLC Registration and Revenue Distribution:
    I understand that registering a developer account is free for both individuals and companies. Would it be advisable to create a U.S.-based LLC for the purpose of receiving and distributing revenue? Specifically, I am concerned with ensuring that the revenue is attributed to the LLC rather than an individual. Will registering an LLC help facilitate this process, especially when dealing with banks for revenue deposits?

I would greatly appreciate your guidance on these matters.

Thank you for your assistance.

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Hello @Zain_Shahbaz ,

  1. Developers who earned less than 1 million USD in revenue in the Amazon Appstore across all geographies during the prior calendar year and developers who are new to the Amazon Appstore are eligible for the Small Business Accelerator Program. For more information please see the FAQ section on this page: Small Business Accelerator Program | Amazon Appstore Developer Portal

  2. There is no difference in royalty share between individual and corporate account types. The only potential difference may relate to the Tax Identity Interview required by the US and Canada marketplaces, but that is a separate form and not tied to your account type. Please follow the steps in the following document to complete your Tax Identity Interview: Set Up Tax Forms for Your Account | Revenue Reports and Promotions

1 Like
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Hi @Emma ,
Thank you so much for the firm and detailed feedback. Now I will start working on the account :slight_smile:
Have a great day!

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