TikTok Shop Verification in the U.S. for non-residents Isn’t Simple—Here’s What You Need to Know.
Launching your business on TikTok Shop in the U.S. as a non-resident involves much more than simply forming a U.S. LLC. The verification process is complex and requires careful planning, particularly around selecting your U.S. entity, appointing a U.S.-based Primary Business Representative (PBR), and declaring Ultimate Beneficial Owners (UBOs). Mistakes can trigger costly delays or even account suspensions, making strategic planning critical.
You may receive this failed notification below, which means, more than likely, your CP 575 EIN letter LLC name, EIN, or address did not match up your business profile. You will have the opportunity to provide extra verification to get your account approved.
This guide highlights key considerations to ensure a smooth TikTok Shop launch—but each business scenario is unique. Here’s what you must consider carefully before proceeding:
Here’s what you should know before getting started.
1. Compliance Starts with the Right U.S. LLC and Tax Plan
TikTok Shop success begins with your U.S. entity and tax plan. Your decisions here will shape your ability to open a U.S. bank account, verify your business, and meet TikTok’s compliance requirements.
- Choose the right entity type and bank combination: Avoid single-member LLCs using platforms like Mercury Bank, which require a U.S. person.
- Select the best state for your business: Tax obligations and operating costs vary by state. Will this be owned by your existing company that sells on Amazon or Shopify? Should it be the same U.S. LLC that is on your Amazon account? What are the risks to your Amazon account if your TikTok account is in the same U.S. LLC?
- Match your LLC address with banking requirements to avoid delays: This is the most overlooked time and money drain. Suppose you don’t get verified (which is happening more often) by Relayfi or Mercury in most cases. In that case, it is almost impossible to make changes to your account to override your financial decision.
Mistakes at this stage can ripple through the entire process, causing unnecessary verification issues or delays.
2. The Role of the Primary Business Representative
TikTok Shop requires every seller to appoint a Primary Business Representative who meets strict qualifications:
- Must be U.S.-based with valid identification (driver’s license or passport).
- Requires a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
- Key point: It is NOT required to hold ownership in your business but acts as a critical compliance contact.
- Updated from TikTok: What most do not know is that once you choose a U.S. primary business representative, you can not change it! The only way to change that person is to close your account and open a new one! This means you will lose all your TikTok data from your existing account. Think carefully before randomly selecting a service from Fiverr or anywhere else to set up your TikTok Shop account. Finally, TikTok Shop limits the number of accounts the same U.S. primary business representative can be on, so don’t be surprised if your account is rejected for some unknown reason; this might be it.
Choosing the wrong representative or overlooking their importance can lead to account setup issues (so choose wisely).
Finally, what could be the U.S. tax impact of having a primary business representative in regard to your analysis of a USTOB and ECI with your US LLC and TikTok Shop business? The video below points out this consideration in your overall expansion plan for your TikTok Shop.
3. Ultimate Beneficial Owners (UBOs): What TikTok Expects
If your business has individuals holding 25% or more ownership, they must be declared Ultimate Beneficial Owners (UBOs).
- UBOs are supposed to be U.S. residents or resident aliens, and that is why they have the option to use a non-U.S. passport as a verification option. This opens the door for non-residents, but the UBO must also have a personal residential U.S. address.
- TikTok may request an SSN or ITIN for UBOs (an issue for non-residents who may not otherwise need an ITIN but may come in handy, similar to Stripe requiring an ITIN once your sales are above $500K
Update: Ultimate Beneficial Owner’s Address Glitch on Both Desktop and Mobile Application (update March 19, 2025, this glitch has been fixed).
Compliance with TikTok Shop requirements involves much more than checking boxes. Every step, from U.S. LLC formation to selecting the right representative and verifying UBOs, must align with your business goals and platform regulations.
Important: TikTok Shop will REJECT a second account application if the information matches the first account. This happens often when sellers make a verification error on the first account. Instead of being patient and getting expert support to fix it, they open a second account with similar information. TikTok Shop will cross-reference the information on the second account to the first, and neither will be verified. This is a similar approach that Amazon takes. You must fix your first account. See our chat history with TikTok Shop recently:
Our team specializes in full-service support, from the U.S. tax plan and U.S. LLC formation to guidance on setting up your TikTok Shop account through this complex process with our comprehensive DFY packages. Book a free discovery call today to ensure your TikTok Shop setup is done right from the start.
