Expanding an eCommerce business into the United States is a dream for many entrepreneurs in Latin America. The U.S. market is not only the largest in the world for online sales, but it also acts as a global validation platform. However, when it comes to taking that step, most eCommerce founders in LATAM face the same barrier: the need to open a company in the USA.
Legal procedures, bank accounts, tax compliance, and logistics can all become overwhelming. But what many don’t know is that it’s already possible to sell in the United States without setting up a local entity. In this article, we’ll explain how this model works and why it’s a game changer for LATAM eCommerce brands.
The Challenges of Opening a Company in the USA
Before diving into solutions, let’s look at the most common roadblocks:
High initial costs: forming an LLC or Corporation requires legal, notary, accounting, and banking fees that can easily exceed $5,000 USD in the first year.
Long implementation times: opening a business is not immediate. Between paperwork, account approvals, and permits, the process can take months.
Tax compliance risks: selling in the USA means filing both federal and state taxes. Without proper expertise, mistakes can lead to costly penalties.
Banking restrictions: U.S. banks often require a physical local presence and a commercial address to open corporate accounts.
Logistics complexity: even with a U.S. entity, managing warehouses, fulfillment, and returns requires advanced logistics solutions and trusted local partners.
For a growing eCommerce brand in Colombia, Mexico, Peru, or anywhere in LATAM, these obstacles can feel like a dead end.
The Alternative: Selling with a Merchant of Record (MoR)
This is where an innovative model comes in: the Merchant of Record (MoR).
An MoR is a legal entity that processes transactions, collects payments in the USA, and assumes tax responsibilities on behalf of the seller. In other words, it becomes the “official seller” in the eyes of customers and regulators, freeing the LATAM brand from having to create its own company in the U.S.
With a reliable MoR, a LATAM brand in supplements, personal care, or beauty can sell directly to U.S. consumers—without friction. To better understand this expansion model, explore our detailed guide on how to take your LATAM eCommerce brand into the U.S. market.
Benefits of the MoR Model for LATAM eCommerce
Faster market entry
Guaranteed legal and tax compliance
Simplified international payments
Centralized logistics and fulfillment
Risk-free scalability
With an MoR, you don’t need to wait months to register a business. You can start selling in the USA within weeks, using integrated software and services for payments, shipping, and returns.
The MoR assumes all U.S. tax and compliance responsibilities, so you don’t need to hire local lawyers or accountants.
The MoR collects payments in the USA and transfers them directly to your LATAM business, eliminating banking and payment gateway challenges.
Some MoRs, like Kiki Latam, also provide warehousing, fulfillment, and last-mile delivery in the U.S., which means faster delivery at competitive rates.
If your product performs well in the U.S., you can scale without the heavy upfront investment or legal complexities.
Common Use Cases
- Nutrition and supplement brands already selling on Mercado Libre or Amazon LATAM that want to test the U.S. market.
- Cosmetic and personal care businesses looking to validate their products with high-spending U.S. consumers.
- DTC (direct-to-consumer) startups born in Colombia, Mexico, or Peru that want to reach customers in Miami, Houston, or Los Angeles.
- Digital creators selling through TikTok Shop, Instagram, or Shopify who want to expand their audience without legal barriers.
The Role of Software in the Transition
Selling in another country is not just about having the right product— it requires specialized software to integrate sales, payments, and logistics. A good MoR provides digital tools such as:
- Shopify, WooCommerce, or Amazon integrations
- Automated inventory and fulfillment management
- A unified dashboard with real-time U.S. and LATAM sales reports
- Secure international payment processing
- Automated tax handling to avoid errors and penalties
With this digital ecosystem, brands can focus on marketing and growth instead of getting lost in accounting and legal complexity.
Marketing Strategy to Maximize MoR Benefits
If you decide to enter the U.S. market with a Merchant of Record, consider these steps:
Define your U.S. buyer persona: U.S. consumers often have different motivations compared to LATAM buyers. Do your research.
Adapt your communication: translate your store and campaigns into English, but also adapt your messaging to resonate with the local mindset.
Run targeted digital campaigns: use Google Ads and TikTok Ads to reach audiences already shopping for your type of product.
Adjust your pricing strategy: factor in fulfillment, returns, and customs costs to ensure healthy profit margins.
Track results in real time: leverage your MoR’s services and tools to optimize quickly.
Opening a U.S. company is a massive hurdle for many LATAM eCommerce brands. But thanks to the Merchant of Record model, it’s now possible to sell in the USA legally, quickly, and at scale—without those barriers.
With the right MoR that combines logistics, software, and international services, Latin American brands can focus on what really matters: growth and expansion.
If you run an eCommerce business and dream of seeing your products in the hands of U.S. customers, you don’t need to wait years or invest thousands in legal paperwork. You can start faster and with less risk.
👉 At Kiki Latam, we help LATAM businesses sell, collect, and scale in the USA—without opening a company. Want to learn how? Contact us here!