FBA prep centers in the 5 sales-tax-free states.
Storing inventory in NH, OR, DE, MT, or AK can keep you out of sales-tax nexus in those states. Here's where to prep, and what the trade-offs are.
The 5 tax-free states, compared.
Counts reflect prep centers in our directory that cleared our 4-point operator standard. Dashes mean we don't have data yet, never a guess.
The nexus argument, explained.
Amazon FBA sellers normally trigger sales-tax physical nexus in any state where their inventory is stored. In a state with sales tax, that nexus typically means the seller (or, under marketplace facilitator laws, Amazon) has to collect and remit sales tax on transactions delivered into that state.
New Hampshire, Oregon, Montana, Delaware, and Alaska are the five US states with no statewide sales tax. Storing inventory in any of them creates no sales-tax nexus in that state, because there is no sales tax for nexus to attach to. That's the entire mechanic, and the entire pitch.
Two caveats worth being honest about: (1) nexus rules vary by destination state. Storing in Oregon does not exempt you from collecting tax in states where you have other physical or economic nexus. (2) Amazon's actual FBA fulfillment centers are not necessarily in tax-free states . Once your inventory leaves the prep center for an FC, it may land in a state that does have sales tax, which can recreate the nexus exposure the prep-step was meant to avoid.
This is orientation, not tax advice. Confirm any inventory or nexus strategy with a CPA who understands marketplace facilitator law.
Oregon
- Salem
- Portland, Eugene
- 4.3M
- 9
- Closest tax-free state to West Coast Amazon FCs
Oregon is the default tax-free pick for sellers shipping into Amazon's West Coast network. Portland sits roughly 3 hours from the SEA and ONT clusters, which keeps inbound transit times competitive even after the prep-center detour. Sellers using Oregon prep centers commonly cite proximity to FBA over pure tax math.
Featured prep centers in Oregon
View all Oregon centers →Proven Prep
Proven Prep is a Portland, Oregon prep center and 3PL operating out of a 17,000 sq ft tax-free Oregon facility, with a second location in South Carolina. Published FBA prep runs $0.85 to $1.25 per unit and covers FNSKU labeling, polybagging, box content labels, suffocation and expiration labeling, removal orders, and online-arbitrage and wholesale prep, with a stated 24 to 48 hour turnaround. Both facilities are FDA-registered and temperature-controlled. It is a full-service 3PL, so the same operation also runs DTC, FBM, and B2B fulfillment from one inventory pool; FBA prep is one division, not the whole business.
Network Prep
Network Prep is an Amazon FBA prep center in sales-tax-free Lafayette, Oregon, founded in late 2019 by Chaz and Trista Leslie of the Side Hustle Network YouTube channel. They run a 5,000 sq ft facility on a fixed weekly shipment schedule with a 1 business day turnaround. Base prep runs $1.00 to $1.65 per unit by monthly volume with polybags, bubble wrap, and shipping boxes included; they also handle hazmat, oversize, and merchant-fulfillment orders for Amazon and Walmart sellers. As of June 2026 the center runs an application-based intake with limited spots (the earlier waitlist-only status has lifted); the operator reviews every application and replies within 1-2 business days.
McKenzie Services
Hillsboro, Oregon prep center for Amazon FBA and ecommerce sellers. Founded in 2016 by Jim Smith and Hannah Moody as the FBA-prep arm of the McKenzie Books business Jim had run since 2004. Became 100% women-owned in 2023 under co-owners Nita Adams, Hannah Moody, and Emily Gordon. Located in a tax-free state, which lets sellers avoid inventory sales tax exposure. The 21,265 sqft warehouse has a loading dock for LTL, FTL, and full container loads. Services include receiving, inspection, product prep, storage, and fulfillment for both wholesale and DTC channels.
PrimeTime Prep
PrimeTime Prep is an Amazon FBA prep and ship center founded in 2022 by Anthony and Zach, with its primary location in Portland, Oregon and a second distribution site in Lincoln, Nebraska. It handles online and retail arbitrage, private label, and wholesale prep, with OA/RA processing at $1.20/unit base and volume-tiered private-label processing from $0.75 down to $0.65/unit. Storage runs free for the first 7 days (OA/RA) then $28/cubic meter/month, and the operator publishes its full a-la-carte fee schedule and terms online. It also offers a direct-to-consumer fulfillment option and runs a separate 3PL brand at primetimefulfillment.com.
Delaware
- Dover
- Wilmington, New Castle
- 1.0M
- 4
- East Coast hub, 90 min from Philly FC
Delaware is the East Coast counterpart to Oregon: small, no sales tax, and a short drive from Amazon's PHL and EWR clusters. Wilmington's port access also makes it a common landing point for inbound containers headed to FBA, which is why several import-heavy prep centers cluster there.
Featured prep centers in Delaware
View all Delaware centers →Urva Prep Center
Urva Prep Center is a multi-service Amazon FBA and Walmart WFS prep operation in tax-free Newark, Delaware, running a primary 25,000 sq ft facility at 301 Ruthar Drive plus a 10,000 sq ft site in Bear. FBA and WFS prep is the productized core, with wholesale prep from $1.00 down to $0.55/unit by volume and online-arbitrage prep from $1.50 down to $1.00/unit. Alongside prep it offers FBM and DTC order fulfillment (same-day before the 7am EST cutoff), two-step dropshipping, FTL inbound consolidation at $0.20 to $0.50/lb, shrink-wrap, and a software dashboard. Storage is free for 14 days then $0.01/unit/day. Hazmat is accepted. Because it runs fulfillment alongside prep, confirm scope directly if you want a prep-only relationship.
Dollan Prep Center
Dollan Prep Center is a tax-free Delaware FBA prep center at 210 Executive Dr in Newark, serving wholesale, private-label, and online-arbitrage Amazon sellers. Labeling runs from $0.30/unit at high volume up to $1.10 to $1.45/unit at standard volume, with most shipments checked in within 24 to 72 hours and billing settled weekly via Stripe. Onboarding is currently limited to sellers moving at least 400 units per month. Alongside FBA prep it also offers FBM fulfillment, Walmart WFS prep, eBay fulfillment, an FTL inbound-freight program, and storage, so confirm scope if you want a prep-only relationship.
East Coast Prep and Ship
East Coast Prep and Ship is an FBA prep and ship operation in tax-free Wilmington, Delaware, prepping inbound inventory for Amazon FBA, Walmart WFS, Seller Fulfilled Prime, and DTC. Per-unit prep runs $0.80 to $1.50 across volume tiers, covering receiving, inspection, UPC covering, FNSKU labeling, and polybagging with suffocation warning. They handle wholesale, private label, and online arbitrage, with bin storage at $0.50 per cubic foot per month and pallet storage at $40 per month. Delaware's tax-free status means inbound products are not subject to sales tax.
Delaware Prep & Fulfillment Center
Newark, Delaware prep center for Amazon FBA, FBM, and arbitrage sellers. Located in a tax-free state for inventory storage. Services include receiving, inspection, labeling, bundling, storage, forwarding, and FBA returns processing. Eligibility minimum: 1,000 items per month for account activation. The operator claims membership in Amazon's Service Provider Network (SPN); verify this independently before relying on it as a credibility signal.
New Hampshire
- Concord
- Manchester, Nashua
- 1.4M
- 5
- Closest tax-free state to Boston metro
New Hampshire is the standard tax-free option for sellers serving the Boston metro and broader New England demand. Manchester and Nashua sit a short drive from the Massachusetts FC cluster (BOS / BWI feeders), and the state has no individual income tax on earned wages either, a secondary draw for operators who relocate.
Featured prep centers in New Hampshire
View all New Hampshire centers →Live Free or Die Distribution
Live Free or Die Distribution is a family-run Amazon FBA prep center at 115 Highland Street in Rochester, NH, a sales-tax-free state. The LLC has been registered with the NH Secretary of State since January 2025, is in good standing with its 2026 annual report filed, and owner Andrew Tompson is confirmed by the registry. The per-unit FBA card is public: $1.75 per unit at base volume down to $1.00 at 3,000+ units a month, with a $199 start-up fee, a roughly $97-$99 monthly minimum below 300 units (the site lists both figures), and a 3% payment-processing fee on invoices. The center requires sellers to have at least 1 year of active Amazon selling history. We found no third-party reviews anywhere yet; the on-site testimonials are specific and internally consistent but self-hosted, so treat service quality as unvouched and test responsiveness first.
Prepare Less
Prepare Less is a prep service in Hampton, New Hampshire, a sales-tax-free state, registered with the NH Secretary of State as Prepare Less LLC since July 2023 and in good standing with its 2026 annual report filed. The homepage leads with all-inclusive per-unit prep pricing: $1.40 per unit up to 500 units a month, $1.20 to 1,000, negotiable above that, covering FNSKU labeling, polybagging, set creation, bundling, and palletization, with FBM fulfillment and storage as secondary services. This listing carries a warning: the two-page website has been unchanged since April 2024, publishes no street address or phone (the address here comes from the state registry), and we found no third-party reviews anywhere. The entity is demonstrably active even though the site is static; treat responsiveness as the thing to test first.
United States Prep
United States Prep is an Amazon FBA prep center in tax-free Salem, New Hampshire, built for online and retail arbitrage sellers moving consistent volume. Standard prep runs $1.50 per unit with $0.50 add-ons for liquid sealing, bubble wrap, and bundling. Turnaround is 2 to 4 days standard, with a 24 to 48 hour priority option. Services cover receiving, inspection, FNSKU labeling, polybagging, and packaging to Amazon standards.
Epic Prep
Tax-free New Hampshire FBA prep center. Founded 2022 by Nathaniel Lambert and Zachary Hulecki in a 15,000 sq ft temperature-controlled facility with three loading docks. Preps 100,000+ items per month for 100+ Amazon FBA customers across arbitrage, wholesale, and private-label workflows. Also offers D2C fulfillment for non-Amazon channels (eBay, Walmart, TikTok) as a secondary service for sellers running multi-channel inventory. Software: PrepShipHub. Slack-based 24/7 communication.
Montana
- Helena
- Billings, Missoula
- 1.1M
- 7
- Lowest-cost option, but distant from FCs
Montana is the cheapest of the five on warehouse rent and labor, but the closest large Amazon FC is in Salt Lake City or Spokane, meaning inbound legs add 1-2 days of transit. Best suited to slow-moving SKUs, oversize items, or long-term storage where the cost-per-square-foot win outweighs transit drag.
Featured prep centers in Montana
View all Montana centers →Yellowstone Prep and Ship
Yellowstone Prep and Ship is an Amazon, Walmart, and eBay prep operation in Billings, MT, a sales-tax-free state, run by owner Katy Byrd since 2022. The per-unit card is public and budget-priced: $1.25 per unit sliding to $0.50 at 10,000+ units a month with FNSKU labeling included, a $75 one-time registration, and 24-48 hour typical turnaround. It carries the deepest third-party review record of the Montana centers we list: 55 dated reviews at 5.0 on a prep-industry directory spanning 2024 to 2026, plus a 4.5-of-5 Walmart marketplace seller rating. This listing carries a warning for two reasons: inventory left over 90 days with unpaid storage becomes the operator's property under their posted terms, and the website still contains live Wix template debris (a placeholder shop and template service pages), so use the price sheet and direct contact, not the site's stray pages. Note for comparison shoppers: another Billings operator we list, Tailwind Pack & Ship, publishes a rate card and terms identical to this one; Yellowstone's is the older operation.
Tailwind Pack & Ship
Tailwind Pack & Ship is a small Amazon prep operation in Billings, MT, a sales-tax-free state, run by owner Trina Weston, who is named on the site's own contact page. The per-unit card is public and budget-priced: $1.25 per unit sliding to $0.50 at 10,000+ units a month with FNSKU labeling included, a $75 one-time registration fee, and 24-48 hour turnaround. This listing carries a warning, and two terms deserve your attention before shipping: inventory left over 90 days with unpaid storage becomes the operator's property under their posted policy, and they disclaim liability for damage or loss in transit to Amazon. The operation publishes no street address (it appears home-based), its Montana registration could not be checked by automated means, and its 24 five-star reviews live only on one signup-gated prep directory, so independent reputation is effectively unverified.
Grizzly Prep MT
A tax-free Montana prep and ship operation in Billings handling FBA, FBM, DTC, and Walmart WFS. Per-unit prep runs $1.25 for 1 to 49 units and scales to $0.50 at 8,000+ units, with a one-time $50 registration fee and storage free for the first 30 days then $20 per SKU per month. The site posts a full line-item rate card rather than a quote-on-request page, and states it is Licensed and Insured and accepting new clients.
Montana Prep Solutions
Montana Prep Solutions is an Amazon FBA prep center in Helena, Montana, a tax-free state, handling small to medium shipments for wholesale, private label, retail arbitrage, and online arbitrage sellers. Per-unit pricing runs $0.85 to $1.49 by monthly volume and covers receiving, inspection, label removal, FNSKU and warning labeling, and the first 14 days of storage. There are no setup or monthly fees and no minimum order quantity. Turnaround is stated at 24 to 72 hours; the center does not accept pallets or semi-truck loads, and new accounts are gated (the operator evaluates each request before onboarding). Contact is via the site form.
Alaska
- Juneau
- Anchorage
- 0.7M
- 0
- Niche; only relevant for AK-resident sellers
Alaska is the most niche of the five. Logistics costs from Anchorage into the lower 48 typically erase any tax-nexus advantage for sellers shipping to mainland FBA destinations. It shows up here mainly for Alaska-resident sellers and for businesses where the owner is already operating in-state for non-Amazon reasons.
Featured prep centers in Alaska
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Common tax-free state questions.
Direct answers, written for sellers, not tax attorneys. None of this is tax advice. Confirm specifics with your CPA.
Does storing FBA inventory in Oregon create sales tax nexus in Oregon?
No. Oregon has no statewide sales tax, so there is no Oregon sales tax to collect or remit, regardless of inventory location. Storing inventory in Oregon also does not by itself create nexus in any other state. Nexus is determined by each destination state's rules on physical and economic presence. Confirm with your CPA before relying on this for tax planning.
Is Delaware better than New Hampshire for FBA prep?
It depends on which Amazon FC cluster you ship into. Delaware is closer to PHL and EWR; New Hampshire is closer to the Boston-area FCs. Both states have no sales tax. Cost and capacity vary by individual center, not by state. Pick the state nearest your primary inbound destination and compare specific centers within it. Confirm transit assumptions with the prep center before committing.
Does Amazon have FBA warehouses in Montana or Alaska?
No. Amazon operates no FBA fulfillment centers in Montana or Alaska. Inventory prepped in either state must be shipped to an Amazon FC elsewhere (often Salt Lake City or Spokane from Montana; the lower-48 generally from Alaska). The prep-center step happens in-state; the FBA storage step does not. Confirm current FC network coverage on Amazon's seller documentation.
Will using a prep center in a tax-free state save me money on sales tax?
Only on sales-tax nexus tied to that specific inventory location. You still owe sales tax in every other state where you have physical or economic nexus, including states where Amazon stores your inventory after the prep step. Marketplace facilitator laws also shift collection to Amazon in most states. Treat the tax-free state as one input among many, not a blanket exemption. Confirm with your CPA.
Are tax-free state prep centers more expensive than other states?
Not as a rule. Pricing varies more by center, capacity, and service mix than by state. Oregon and New Hampshire pricing tends to track other West Coast and Northeast metros; Montana is typically cheapest on labor and rent; Delaware varies widely. Use our per-state comparison above and confirm current rates directly with each center.
Do I need to register my LLC in the tax-free state where my prep center is located?
Usually no. Using a third-party prep center does not by itself require you to register an LLC in that state. Foreign-qualification rules vary by state and are triggered by activities like leasing your own space, having employees, or making in-person sales. Using a 3PL or prep center is typically not enough. Confirm with a business attorney or CPA for your specific situation.
How does economic nexus work in tax-free states?
Economic nexus is irrelevant in the five tax-free states because there is no sales tax to trigger. Economic nexus thresholds (typically $100K in sales or 200 transactions) apply in the 45 states with sales tax and are evaluated per-destination-state, not based on where your inventory sits. Storing in a tax-free state does not exempt you from economic nexus elsewhere. Confirm with your CPA.
Can I use multiple prep centers across different tax-free states?
Yes. There is no rule against splitting inventory across multiple prep centers in different states. Sellers commonly run one West Coast prep (often Oregon) and one East Coast prep (Delaware or New Hampshire) for transit-time reasons. Coordinating SKU allocation, FNSKU labeling, and inbound paperwork across centers adds operational overhead. Plan for it before committing.
We are not tax advisors. Sales tax nexus rules are complex and vary by destination state. Information on this page is for orientation only. Confirm with your CPA before making decisions about inventory storage locations.