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An LLC offers liability protection and tax advantages. Selling as a sole proprietor is common initially. Consider forming an LLC as your business grows.
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Product liability laws hold businesses accountable for unsafe products. Manufacturers face strict liability for defects under the CPA. Retailers may also be liable in some cases.
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An LLC separates the business from owners. Personal assets are protected from debts and liabilities. LLCs have simplified administration and can be taxed as pass-through entities.
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If selling physical goods across states, an LLC helps safeguard personal assets. Even with digital products, an LLC can shield assets from lawsuits. With small businesses, an LLC may not be necessary yet.
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You can turn on Shopify sales tax collection. The sales tax goes into your account. You must set it aside and remit it monthly.
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You can sell on Amazon without a warehouse using Fulfillment by Merchant. You handle storage and shipping yourself. However, an LLC ensures personal assets aren’t at risk.
Do I need to create a business to sell a product?
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An LLC offers liability protection and tax advantages. Selling as a sole proprietor is common initially. Consider forming an LLC as your business grows.
-
Product liability laws hold businesses accountable for unsafe products. Manufacturers face strict liability for defects under the CPA.
-
An LLC separates the business from owners. Personal assets are protected from debts and liabilities. LLCs have simplified administration.
-
If selling physical goods across states, an LLC helps safeguard personal assets. Even with digital products, an LLC can shield assets from lawsuits. With small businesses, an LLC may not be necessary yet.
-
You can turn on Shopify sales tax collection. You must set it aside and remit it monthly.
-
You can sell on Amazon without a warehouse using Fulfillment by Merchant. However, an LLC ensures personal assets aren’t at risk.
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While possible to sell without an LLC, it may not be wise. An LLC protects assets. It boosts credibility and enables growth. The decision depends on your business.